Latest Breaking News

MosheFeingold

(3,051 posts)

9. Correct

Mon Dec 7, 2015, 07:03 PM

Dec 2015

There is a happy medium to oil, somewhere in the $70-95 range.

The only people who get rich with low oil are the giant mid-stream/refining companies (e.g., BP, Exxon).

Yes, the price of oil they own goes down, but 1/3 of that goes to the mineral owner (usually scattered families, but also largely states and the federal government), 1/3 goes to various taxes, and they get hit on 1/3.

So, long way of saying 2/3 of the hit of a low oil price is on people who are not oil companies.

Not to mention lots and lots of jobs.

The cheap, cheap oil producers are in places like Saudi where they don't give a rats ass about the environment -- and it's cheap because they don't do anything to protect their environment.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

24 replies

= new reply since forum marked as read

Highlight:

Oil Tumbles to Six-Year Low as OPEC Abandons Production Target [View all] Purveyor Dec 2015 OP

Maybe this will kill the fracking business. philosslayer Dec 2015 #1

It is doing just that but will it set in motion a recession? Purveyor Dec 2015 #2

Are you kidding? philosslayer Dec 2015 #3

Until OPEC decides to stop glutting the market - then what? jonno99 Dec 2015 #5

That's the thing..... Plucketeer Dec 2015 #10

Yep. Even now though one of my boys is looking to trade in his "crew-cab" for a vehicle jonno99 Dec 2015 #11

I still drive my '57 Studebaker truck Plucketeer Dec 2015 #19

Dont count on it unless there is a major change from relying on oil for most of the world within cstanleytech Dec 2015 #16

I'd like to think frakking killed OPEC! yallerdawg Dec 2015 #4

+1 yep. jonno99 Dec 2015 #7

actually, it was the other way around... Javaman Dec 2015 #22

Fracking and the increasing viablity of renewables put pressure on OPEC. OPEC responds by trying pampango Dec 2015 #23

Unfortunately, this isn't good news FLPanhandle Dec 2015 #6

Correct MosheFeingold Dec 2015 #9

You only forgot to add the high-stake traders that can influence the price. erronis Dec 2015 #12

But see, high price oil is an incentive for more oil! yallerdawg Dec 2015 #13

+1 can't argue with that! nt jonno99 Dec 2015 #15

Well, the Saudis owe us more than that! But it's a start. Elmer S. E. Dump Dec 2015 #8

Watch your own back. The Saudis have nothing but disdain for you (and me.) erronis Dec 2015 #14

I hear you, bro. Elmer S. E. Dump Dec 2015 #18

Glad to see the lower prices but BumRushDaShow Dec 2015 #17

War in the Oil Patch boosts PPB. Octafish Dec 2015 #20

If this keeps up Turbineguy Dec 2015 #21

Low price oil is leading to higher auto insurance prices. Xolodno Dec 2015 #24