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Thread: Oil Boil Toil and Trouble

  1. #1
    Senior Member Starjots's Avatar
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    Oil Boil Toil and Trouble

    Or something like that

    News article about OPEC trying to cut production

    IMO this is the kind of stuff that makes the world go round, like currents under Lithosphere pushing around tectonic plates.



    First thing that stands out to me is Saudi Arabia has made a deal with Iran to let them up their production a bit while cutting their own a half million barrels a day. Wow - could it be they can live in peace and tone down the proxy wars? Which TRUMP!! promises to fix and HILLARY!! supposedly messed up?

    I hope so. Maybe we're getting to a period of greater stability in the Mid East. If nothing else peeps over there must be getting tired, even if Allah is on their side.

    Second item of interest - will US Oil output increase to keep prices low? Did we manage to buy enough enormous giant pickup trucks and SUVs to guzzle enough gas to help out the Kingdom of Saud? Judging by the roads I drive on, maybe. I feel like I'm in a motorboat surrounded by aircraft carriers on the highway. As a nation, I think we're going all in for 'f*ck it, it's just the planet.

    Third - will Russia play ball? Seems like they should given higher prices would be good for everyone and their economy relies on such things.

    Fourth - US oil production surged during Obama's years a lot. Crazy but true. I wonder now that the boy's club is in charge if we'll play ball too.

  2. #2
    Amen P-O's Avatar
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    I read something that said these cuts are conditional upon non-OPEC cuts going through. I don't think it's going to happen. It's just a ruse to get prices up for a little while.

    If prices go up and stay up, US will increase shale oil production for sure. Lots of companies are in crisis from the last oil dip and need to produce to pay it off.
    Violence is never the right answer, unless used against heathens and monsters.

  3. #3
    Senior Member Starjots's Avatar
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    Quote Originally Posted by Starjots View Post
    Third - will Russia play ball? Seems like they should given higher prices would be good for everyone and their economy relies on such things.
    And there you go - Russia and others join OPEC in Rare Coordinated Push to Cut Oil Production

    and

    Saudis Signal Deeper Cuts After Deal With Non-OPEC Countries

    "I can tell you with absolute certainty that effective Jan. 1 we’re going to cut and cut substantially to be below the level that we have committed to on Nov. 30," Saudi oil minister Khalid al-Falih said after today’s meeting.
    Quote Originally Posted by Starjots View Post
    Fourth - US oil production surged during Obama's years a lot. Crazy but true. I wonder now that the boy's club is in charge if we'll play ball too.
    Well let's see... who is Trump team talking about as nominee for Secretary of State? How about Rex Tillerson, CEO of largest oil US oil company Exxon Mobil...

    I say if this goes through we are going to play ball and try to suppress world oil production further (not US production) so it's win/win/win/lose. Everybody wins except whoever gets the external pressure for a big production cut.

    Saudi wins - Russia wins - US wins (break out the rigs boys, meat is back on the menu!) - ?? loses. Maybe Venezuela - not sure. Iran is playing ball but perhaps there's a double cross in the works.

    Anyway just speculation.

    Quote Originally Posted by P-O View Post
    I read something that said these cuts are conditional upon non-OPEC cuts going through. I don't think it's going to happen. It's just a ruse to get prices up for a little while.

    If prices go up and stay up, US will increase shale oil production for sure. Lots of companies are in crisis from the last oil dip and need to produce to pay it off.
    Maybe. But in these times 'follow the money' may be our truest guide.

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