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An intelligent, thorough, non-partisan analysis.  Good stuff:

 

http://m.thenation.com/article...d-oil-price-collapse

 

Climate change deniers might find purported cause to disagree with oil industry titans, but take note of the fact that they recognize this as a real phenomenon having a potentially serious impact on their industry. 

I yam what I yam and that's all I yam--but it is enough!

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The article mentions a number of legitimate reasons for the decline of oil prices.  However, they ignored a major reason.  Oil is a commodity, and like most commodities, is declining in price.  The reason for the overall decline is the state of the global economy.  Most of Europe is expected to either go back into recession or stagnate.  Japan is much the same,  China and the lesser suppliers are not receiving orders, resulting in decreasing commodity prices to produce less goods,  The Chinese are attempting to kick start their internal economy.  However, massive debt in the private and regional government sector banks is being revealed. The US, the best global economy, is stumbling along at an average GDP increase of 1.95 percent for the last six years.  The projected GDP change for this quarter will not significantly increase.  This is the worst recovery since the depression.

 

There is a bright spot fuel wise.  Lockheed -Martin projects a working fusion generator by 2017 and commercial models by early 2020s.  The results will be electric generation cheaply, with little pollution.  Enough electric power to use sea water to produce hydrogen for fuel economically.  Hydrogen produces oxygen and water as pollutants when burned in an internal combustion engine.

The "welfare state baby welfare state" had more effect than "drill baby drill". Much of the world economy is dependent upon American consumers who can't afford as much working part time service sector jobs. As far as government fuel mileage standards affecting the oil industry, people who can't afford new gas sucking SUV s and pickups don't buy them.

As to my point concerning all commodity prices dropping, with more to come.

About 12 January 2015

"The Bloomberg Commodity Index of 22 energy, agriculture and metal prices dropped as much as 1.6 percent to 101.95, the lowest since November 2002. In 2014, the gauge declined 17 percent, the most since the global financial crisis in 2008. The measure rose to a record in July 2008, more than doubling from the start of 2000.

 

A rout in energy prices has led the declines for raw materials, with oil dropping to the lowest in more than five years and Goldman Sachs Group Inc. forecasting more declines. Supply gluts are emerging in grains, helping to keep food inflation in check, while a slowdown in global manufacturing hurts demand for metals."

http://www.bloomberg.com/news/...-rout-growth-concern

More to come:  13 March 2015

"Goldman Sachs says commodity prices will plunge 20% more over six months. Bloomberg’s Alix Steel reports on “Bottom Line.” (Source: BloombergGoldman Sachs says commodity prices will plunge 20% more over six months. Bloomberg’s Alix Steel reports on “Bottom Line.” (Source: BloombergGoldman Sachs says commodity prices will plunge 20% more over six months. Bloomberg’s Alix Steel reports on “Bottom Line.” (Source: BloombergGoldman-Sachs forecasts a further 20 percent drop in commodity prices."

 

http://www.bloomberg.com/news/...-in-commodity-prices

Its going to be a bumpy ride -- thanks, in part, to Obama.

 

Originally Posted by direstraits:

Of course, it was partially Obama's fault. His administration did much to make drilling more expensive.

Then you have to give him credit for the current relatively low price at the gas pump. ?

 

My take is that the president, any president has very little to do with the price of gas except . If there is war in the middle east, then the price of oil is going to go up. plain and simple. Obama has pushed a position of peace thru negotiation instead of war, so , yes, he  is partly responsible for the low price now, as Bush was when oil went up so high. It has to do with war and peace. For some reason , there are a bunch of politicians who just can't seem to be able to stand peace,  so think about the cost to fill your car if you vote for one of them.
On the other hand, I have not come to the opinion that this lull is forever, and on occasion continue to buy some oil stocks on the dips. 

 

Originally Posted by seeweed:
Originally Posted by direstraits:

Of course, it was partially Obama's fault. His administration did much to make drilling more expensive.

Then you have to give him credit for the current relatively low price at the gas pump. ?

The above sentence is not consistence at to ration or reason with my statement.

 

My take is that the president, any president has very little to do with the price of gas except . If there is war in the middle east, then the price of oil is going to go up. plain and simple. Obama has pushed a position of peace thru negotiation instead of war, so , yes, he  is partly responsible for the low price now, as Bush was when oil went up so high. It has to do with war and peace. For some reason , there are a bunch of politicians who just can't seem to be able to stand peace,  so think about the cost to fill your car if you vote for one of them.
On the other hand, I have not come to the opinion that this lull is forever, and on occasion continue to buy some oil stocks on the dips. 

 ______________________________________-

When the Iraq war occurred, the US did not have the supply of oil it  has now. Nor, new supplies from Canada or the partial privatization of Mexican oil, which will increase supplies.

 

As a result of the agreement with Iran, I have little doubt that the House of Saud and Turkey are  negotiating a price for nukes from the Pakistanis and nuke warhead capable ballistic missiles from the Norks.

 

In case it has escaped you, Libya is extremely unstable (thanks Hillary and Obama).  Syria and Iraq are aflame with ISIS. And, Yemen may be this century's equivalent of the Spanish civil war -- Iran and al Qaeda one side; and the Sauds, Egypt, Jordan, Kuwait and a couple of others on the other side.

 

There is no peace, nor sign of one.  The ME, north and east Africa are burning.

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