There goes the oil sands jobs. Too expensive.
This is a discussion on Lets talk about Oil within the News & Links forums, part of the General Discussion category; Surprised I haven't noticed a thread on this yet. So like anyone following how OPEC has said it is not going to regulate oil output ...
Surprised I haven't noticed a thread on this yet.
So like anyone following how OPEC has said it is not going to regulate oil output anymore. Iran is due to come back online soon. Syria's infrastructure is being eaten up by NATO, and Turkey is very close to closing off the Bosporus to Russian oil exports (and military and other shipping)
In Canada the effects on the Petrodollar are more pronounced with not only Russia taking a hit on the ruble but the Canadian Dollar dropping cents on the dollar or more for the last few days as oil as WTI and nearly Brent has been slipping below the 40 mark headed quickly for 35. This all at a time when the Fed is set to increase interest rates. The Cad was at 75 two days ago now it sits closer to 73.
Forecasts have been all over the place, but one thing is certain if there is a looming crash this is the biggest drop in the markets I've seen since the last housing crash. We have gone back about 11 years now interms of the Cad, and it is set to go much lower, perhaps as low at .50 to the USD if you believe some forecasters.
Of course WCS trades much lower on the differential than WTI normally, so 10% of the Canadian economy is set to be shaved in what is looking like a long time supply contraction. Even as US production goes offline, OPEC has essentially signaled today, ship it if you got a buyer. Pump it if you got space in the reservoir.
USD is going strong, while states such as Alaska, Alaska, are taking hits, not unlike Alberta in Canada.
This is definitely some economic turbulence in store for those North of the US border, as well other major oil producers such as Mexico, and Venezuela, Russia and others. Of course US production is set to rapidly go offline as storage runs out and prices stay unprofitable, but we will see, we will see.
We definitely entered a whole new Oil landscape today we have not seen since the energy crisis, this is the "energy anti-crisis", this all playing with the hottest its been in over 50 years in West vs. the rest. NATO vs ?? Russia??? landscape, war is unthinkable as we all know it would be uglier than anyone wants. Not only would Big Oil be Big Bust but we may be very close to a total collapse of the UN as the security council fails to balance out NATO vs presumed declining Russian capability. Sensationalism perhaps. All I know is that I go on vacation after my exams finish tomorrow.
Last edited by Will2; 12-08-2015 at 06:55 PM.
OPEC can't cut now. They need the cash . If one cuts the other will sell more to cover their problems. Muslims They can not live up to any agreement they make. They only play when it works in their favor.
The cost of oil will work it's way back. Maybe not to highest levels in real cash for some time but as a percentage when compared to what other items cost.
Iran has know for years their supply is limited , that is why they want Iraq so bad at least the corner near Kuwait. Once they control Iraq ,Kuwait will do as Iran says.
Canada's problem is not oil it is socialism . Same with Mexico, and Venezuela. However Venezuela maybe trying to bail out of it.
Will2 please save yourself get out of public education. There is a real world outside their BS.
New life as a house husband, major shift in duties.
Karl Marx said, "Destroy their culture, rewrite their history. Ruin their art and literature, and defame their heroes, by offering fabrications to scandalize that which they considered good.
After reading this Obama said I am on it.
Hidden Content Wouldn't it be nice.....
I almost got caught up in the frac sand boon. Was hauling sand to the processing plants from the mine. We were STRONGLY encouraged to buy a new semi truck and end trailer to haul for them. Gee, only $100K for a truck and 30K plus for the trailer. The companies had it all figured out if oil would stay at $80-$90 or higher a barrel how much money we would all make. Sure glad I walked away from that deal.
Oil is the inverse of the old saying.. what goes up must come down. I've lived through a number, many, booms and busts in the oil industry over the past 35 years. This is just another one. It too, like the others will be painful but will also end and oil will go back up. To some degree is cyclical as well as influence by geopolitical events.
OPEC, via Saudi, is cutting their own throat and hurting other members. A stable price was or is in their best interest but that's not going to happen.
Personally, I think we should end the ban on exporting oil and ramp that up. In America we also need to build a few more refineries to process what we have. But not of that will happen with the current political environment, present and future.
btw, you know who is hurt the most by low oil prices? Any guesses?
The governement... less taxes. The government profits the most from Oil and Gas sales via taxes.
So as this continues look to the governemt and our ruling class at the federal and state level to find some alternative taxes to make up for the fall in oil/gas tax revenue.
"Erosion of our rights just takes a few good men doing nothing"
Who is John Galt?
the plan is to eventualy reduce oil consumption at the same time as ramp up renewables.All the climate change advocates are clammering for carbon reductions across the board and for us in Canada our tar sands have been branded dirty oil.Suits me fine as we can leave it in the ground for future use but economically this will shrink GDP and cause pain in the short-med term.
Canuck buck is taking it on the chin and we could see a 65 cent dollar.This will also breed contagion into Canadian realestate which is massively overvalued.
Will, oil is being discussed, already:
This thread was started approximately twelve hours before you started this redundant thread.
"Reality is almost always wrong."
Dr. Gregory House