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Oil at $75 Means Patches of Texas Shale Turn Unprofitable

Lursa said:
If they are making a profit then they dont need subsidies. "Subsidies" are not "their money."
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What is a subsidy? Do you mean they are following the current tax laws? If so do you agree that now is a great time to push for either a flat tax or a fair tax?

Here is one explanation:
What is a fossil fuel subsidy?
A fossil fuel subsidy is any government action that lowers the cost of fossil fuel energy production, raises the price received by energy producers or lowers the price paid by energy consumers. There are a lot of activities under this simple definition—tax breaks and giveaways, but also loans at favorable rates, price controls, purchase requirements and a whole lot of other things.​
 
And so the shale bubble begins to pop.
 
EnigmaO01 said:
Here is the link that projects possibly oil dropping to $30.00 per barrel.

How low will oil fall? $30 is possible - Dec. 31, 2014
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30 years ago,(the last time I worked in the oil Industry) The break even price point was $18 a barrel.
Below that things starting shutting down. I have heard that number is now around $50 a barrel,
but many of the new extraction technologies are more expensive, and so will drop out faster.
Some of this depends on if the extraction enhancement was a one time cost (fracking) prorated
over the life of the well, vs ongoing cost like steam extraction.
 
Deuce said:
If only that Obama had allowed more drilling.
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You guys need to come to some sort of agreement. Half of the President Hater's Club says Obama has nothing to do with the falling gas prices and your half is blaming him for not allowing more drilling? Get it together guys!

BTW, the USA just recently became the world's #1 oil producer. (You know, then there's that. :roll:)
 
Captain America said:
You guys need to come to some sort of agreement. Half of the President Hater's Club says Obama has nothing to do with the falling gas prices and your half is blaming him for not allowing more drilling? Get it together guys!

BTW, the USA just recently became the world's #1 oil producer. (You know, then there's that. :roll:)
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I believe Deuce was being sarcastic.
 
Shale oil can take a back seat for now. Once the price reaches $100 (10 years down the road) that time frame would be too expensive again to extract shale oil.
 
RDS said:
Shale oil can take a back seat for now. Once the price reaches $100 (10 years down the road) that time frame would be too expensive again to extract shale oil.
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It won't be 10 years. Someone will do something in the middle east out of desperation -- either Iran or Russia -- that will drive up the price of oil again. My guess is it's already in the planning stages.

Or Israel could attack Iran's nuclear facilities and have the same effect.
 
Captain America said:
You guys need to come to some sort of agreement. Half of the President Hater's Club says Obama has nothing to do with the falling gas prices and your half is blaming him for not allowing more drilling? Get it together guys!

BTW, the USA just recently became the world's #1 oil producer. (You know, then there's that. :roll:)
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Your little tin god blocked virtually every application to drill on public lands. He was not able to block the drilling on private lands, nor the advances in fracking and slant drilling.

Clear?
 
EnigmaO01 said:
It won't be 10 years. Someone will do something in the middle east out of desperation -- either Iran or Russia -- that will drive up the price of oil again. My guess is it's already in the planning stages.

Or Israel could attack Iran's nuclear facilities and have the same effect.
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The problem is that oil will not exceed $60-65 a bbl in the foreseeable future, because the ME simply doesn't have enough impact. Domestic production alone would see a rise in price, but not beyond what I listed.
 
Uncensored2008 said:
Your little tin god blocked virtually every application to drill on public lands. He was not able to block the drilling on private lands, nor the advances in fracking and slant drilling.

Clear?
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According to Fact check there were over 5,000 permits for drilling on federal lands during the first 3 years of Obama's first term.
 
minnie616 said:
According to Fact check there were over 5,000 permits for drilling on federal lands during the first 3 years of Obama's first term.
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I guess he wasn't so "clear" about that. :lol:
 
minnie616 said:
According to Fact check there were over 5,000 permits for drilling on federal lands during the first 3 years of Obama's first term.
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{While production booms on non-federal lands and boosts U.S. exports, production on federal lands is lagging. In fact, all of the increased oil production from 2009 to 2012 took place on non-federal lands, according to the Congressional Research Service, while the share of oil production on federal lands fell by seven percent.

Oil production on federal lands was down 31 percent from 2011 levels, while production on state and private lands increased by 15 percent, reports the Energy Information Administration.}

White House praises oil drilling while blocking it on federal land | The Daily Caller


Where fact check plays it's game is in failing to identify new versus existing permits. The 5,000 permits were there already and represent renewals, rather than new permits. In fact, the permits on federal land in general have declined by a third, under Obama.
 
Deuce said:
If only that Obama had allowed more drilling.
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The US has had the highest rig count in over 40 years under this administration... and that had NOTHING to do with Obama.. The oil business is a BUSINESS and when the ppb is high they invest in rigs, exploration and drilling.
 
Uncensored2008 said:
{While production booms on non-federal lands and boosts U.S. exports, production on federal lands is lagging. In fact, all of the increased oil production from 2009 to 2012 took place on non-federal lands, according to the Congressional Research Service, while the share of oil production on federal lands fell by seven percent.

Oil production on federal lands was down 31 percent from 2011 levels, while production on state and private lands increased by 15 percent, reports the Energy Information Administration.}

White House praises oil drilling while blocking it on federal land | The Daily Caller


Where fact check plays it's game is in failing to identify new versus existing permits. The 5,000 permits were there already and represent renewals, rather than new permits. In fact, the permits on federal land in general have declined by a third, under Obama.
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There are 4,000 permits available on Federal land, but the regulations are more stringent... and you can't dictate where oil companies drill.
 
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