View Poll Results: Should we temporarily subsidize domestic oil shale production in response to OPEC?

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  • Yes, if prices drop too low we should.

    6 17.14%
  • No.

    29 82.86%
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Thread: Should we temporarily subsidize oil shale production in response to OPEC

  1. #11
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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by SouthernDemocrat View Post
    I think you are unfortunately ignorant of the economics of oil production. It costs us a lot more to produce our tight oil than it does OPEC to produce oil. If we tried to rely just on our domestic oil production all it would accomplish is us paying a lot more for gas at the pump than we ever have before and thus destroying our economy in the process.
    No it would not. Hyperbole much? US shale is still viable at $45 a barrel. It is still an underdeveloped part of production because of the US ban on unprocessed exports discourages production capacity.

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    No, we should release oil out of the strategic reserves to maintain lower prices to really stick it to OPEC.
    They would just refill them immediately and we'd be back to square one. [it's a 37 day supply based on 2013 consumption numbers]
    32 “Whoever acknowledges me before others, I will also acknowledge before my Father in heaven. 33 But whoever disowns me before others, I will disown before my Father in heaven.
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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    No it would not. Hyperbole much? US shale is still viable at $45 a barrel. It is still an underdeveloped part of production because of the US ban on unprocessed exports discourages production capacity.
    At current costs, most estimates put oil shale production only economically viable at oil prices of $60 dollars a barrel or more. Oil shale economics - Wikipedia, the free encyclopedia
    "You're the only person that decides how far you'll go and what you're capable of." - Ben Saunders (Explorer and Endurance Athlete)

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by WCH View Post
    They would just refill them immediately and we'd be back to square one. [it's a 37 day supply based on 2013 consumption numbers]
    Driving falling prices will make it cheaper to refill them

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by SouthernDemocrat View Post
    At current costs, most estimates put oil shale production only economically viable at oil prices of $60 dollars a barrel or more. Oil shale economics - Wikipedia, the free encyclopedia
    "Only about 4 percent of U.S. shale production needs $80 or more to be profitable, according to the Paris-based International Energy Agency. Most production in the Bakken formation, one of the main drivers of shale oil output, remains profitable at or below $42 a barrel, the IEA estimates. The agency expects U.S. supply to rise by almost 1 million barrels a day next year, with increasing flows to international markets. " Oil Enters New Era as OPEC Faces Off Against Shale; Who Blinks as Price Slides Toward $70? - Bloomberg

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    Driving falling prices will make it cheaper to refill them
    They only paid $28.50 per barrel in the first place. [volume buying I suppose]

    Strategic Petroleum Reserve (United States) - Wikipedia, the free encyclopedia
    32 “Whoever acknowledges me before others, I will also acknowledge before my Father in heaven. 33 But whoever disowns me before others, I will disown before my Father in heaven.
    Matt. 10:32-33

  7. #17
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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    "Only about 4 percent of U.S. shale production needs $80 or more to be profitable, according to the Paris-based International Energy Agency. Most production in the Bakken formation, one of the main drivers of shale oil output, remains profitable at or below $42 a barrel, the IEA estimates. The agency expects U.S. supply to rise by almost 1 million barrels a day next year, with increasing flows to international markets. " Oil Enters New Era as OPEC Faces Off Against Shale; Who Blinks as Price Slides Toward $70? - Bloomberg
    That's actually very good news. [since SA is holding their prices steady]
    32 “Whoever acknowledges me before others, I will also acknowledge before my Father in heaven. 33 But whoever disowns me before others, I will disown before my Father in heaven.
    Matt. 10:32-33

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by WCH View Post
    They only paid $28.50 per barrel in the first place. [volume buying I suppose]

    Strategic Petroleum Reserve (United States) - Wikipedia, the free encyclopedia
    It is the in-kind aspect to public leases. Instead of paying us in cash, they paid us in oil.

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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    "Only about 4 percent of U.S. shale production needs $80 or more to be profitable, according to the Paris-based International Energy Agency. Most production in the Bakken formation, one of the main drivers of shale oil output, remains profitable at or below $42 a barrel, the IEA estimates. The agency expects U.S. supply to rise by almost 1 million barrels a day next year, with increasing flows to international markets. " Oil Enters New Era as OPEC Faces Off Against Shale; Who Blinks as Price Slides Toward $70? - Bloomberg
    You realize you just linked to an article warning of a crash in domestic production if OPEC keeps prices low?? The problem is that if oil prices stay low then future projects will be mothballed. Oil shale needs constant investment in future production to stay viable. Tight oils peak fast, you can't just drill a well like they do in Saudi Arabia and draw off it for years.
    "You're the only person that decides how far you'll go and what you're capable of." - Ben Saunders (Explorer and Endurance Athlete)

  10. #20
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    Re: Should we temporarily subsidize oil shale production in response to OPEC

    Quote Originally Posted by Declan View Post
    It is the in-kind aspect to public leases. Instead of paying us in cash, they paid us in oil.
    Somebody got stiffed! 8)
    32 “Whoever acknowledges me before others, I will also acknowledge before my Father in heaven. 33 But whoever disowns me before others, I will disown before my Father in heaven.
    Matt. 10:32-33

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