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CalmDownMate
Dec 3, 2015

by Shine


How hosed are we serously?

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Schizotek
Nov 8, 2011

I say, hey, listen to me!
Stay sane inside insanity!!!
Completely.
Thankfully, as a side effect of the collapse of civilization, I will no longer have to read your lovely posts.

icantfindaname
Jul 1, 2008


The Saudis are hosed, everyone else should be OK if uncomfortable

CalmDownMate
Dec 3, 2015

by Shine
I'm thinking a coalition of countries bombing Saudi Arabian oil fields would be a good idea at this point.

Chair In A Basket
Aug 6, 2005

I'm basically Jesus.

Nap Ghost
buy it cheap, pump it back into the ground, and then retrieve it in a future generation when it is actually worth something again

PleasingFungus
Oct 10, 2012
idiot asshole bitch who should fuck off

icantfindaname posted:

The Saudis are hosed, everyone else should be OK if uncomfortable

bad time for investors in shale

Dr. Killjoy
Oct 9, 2012

:thunk::mason::brainworms::tinfoil::thunkher:
set every oil well alight and let loose the fires of hell

Dr. Killjoy fucked around with this message at 07:42 on Jan 12, 2016

BlueBlazer
Apr 1, 2010

Chair In A Basket posted:

buy it cheap, pump it back into the ground, and then retrieve it in a future generation when it is actually worth something again

Sounds good. Preventative carbon capture.

Booourns
Jan 20, 2004
Please send a report when you see me complain about other posters and threads outside of QCS

~thanks!

Dr. Killjoy posted:

set every oil well alight and let loose the fires of hell


I wonder if those camels are even capable of understanding how badass they look in that picture

MaxxBot
Oct 6, 2003

you could have clapped

you should have clapped!!

CalmDownMate posted:

I'm thinking a coalition of countries bombing Saudi Arabian oil fields would be a good idea at this point.

Unless you happen to live in Russia, Venezuela, or Nigeria why are you so concerned about low oil prices?

Grem
Mar 29, 2004

It's how her species communicates

OPEC losing control or something? I noticed gas prices dropping like crazy but never really looked at why or why I should be worried. Seems like a good thing?

mobby_6kl
Aug 9, 2009

Awesome. Too bad the dollar is pretty strong now which keeps gas more expensive here, but still. Gonna buy a lifetime supply of oil now, like 2000 barrels, to lock down the price :getin:

yogizh
Oct 12, 2015
Dumb Helicopter Joke Enthusiast
OPEC is making GBS threads themselves. Only good thing ISIS unintentionally caused.
Open petrol market is the biggest loving nightmare of the cartel.

Rime
Nov 2, 2011

by Games Forum

MaxxBot posted:

Unless you happen to live in Russia, Venezuela, or Nigeria why are you so concerned about low oil prices?

Canada calling, we want you to know our economy is right turbofucked thanks to this.

Grey Area
Sep 9, 2000
Battle Without Honor or Humanity

icantfindaname posted:

The Saudis are hosed, everyone else should be OK if uncomfortable
It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

edit: As a bonus they ease China's economic crisis, helping out one of their biggest customers.

Grey Area fucked around with this message at 10:16 on Jan 12, 2016

Typical Pubbie
May 10, 2011

Rime posted:

Canada calling, we want you to know our economy is right turbofucked thanks to this.

Good.

Count Roland
Oct 6, 2013

icantfindaname posted:

The Saudis are hosed, everyone else should be OK if uncomfortable

The Saudis have a huge amount of cash in the bank and their oil is some of the world's cheapest to get out of the ground. They Saudis are the least hosed- and its their policy of refusing to cut production that's caused the price to drop. They might be able to reverse the process if they chose to.

The Saudis are the least hosed, everyone else more so.

Salt Fish
Sep 11, 2003

Cybernetic Crumb
I might just buy a literal barrel of oil. I mean the barrel itself has got to be worth a few dollars by itself.

Pimpmust
Oct 1, 2008

Rig counts are going down down down (oil production is following, if slowly for now), every business involved is gushing money like it's blood in a splatter movie because everyone loaned way more money than they'll ever get out of the ground, 30 oil/shale related companies in the US have gone into bankruptcy in the past year and (well paid) jobs are burning by the thousands and everyone is pumping the "good spots" dry as fast as they can to pay off their massive interest costs.

And Iran haven't even really entered the picture.

Enjoy the low prices while they last, $200/barrel here we come :unsmigghh:

jet sanchEz
Oct 24, 2001

Lousy Manipulative Dog

Grey Area posted:

It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

edit: As a bonus they ease China's economic crisis, helping out one of their biggest customers.

That is how this oil slide started in 2014 but I think it is out of their control now and they are feeling the pain. There are rumours that they are going to have to sell off part of Aramco, their state/kingdom owned oil company, the largest company in the world, valued at $10 trillion.

http://www.theglobeandmail.com/repo...rticle28116631/

As Saudi Arabia recovers from crude’s crash, is Aramco really for sale?

Growing budgetary deficits, plummeting oil prices – Saudi Arabia’s single-product economy, almost 90-per-cent dependent on oil sales for its revenues, is facing major headwinds. The kingdom needed to do something drastic.

Last week, Riyadh moved. The family silver finally appears to be up for grabs.

ukle
Nov 28, 2005

Grey Area posted:

It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

edit: As a bonus they ease China's economic crisis, helping out one of their biggest customers.

Exactly. The Saudis are playing a big gamble and are doing this deliberately to try and destroy the Shale exploration markets. The problem is for them, they were likely banking on them starting to go under when it was at $50, but ways its looking its going to need to go a lot lower. Seen forecasts for anything between $20 to $10, e.g. RBS said in its weekly note to investment clients they are predicting the bottom at around $16.

Bigger issue is how this is completely loving over the oil producing countries who can't weather this e.g. Venezuela and especially Russia. Some estimates have Russia having a daily deficit of $1 Billion US due to the tanking of the oil price, and it can't whether it for long. Really the obvious solution to this for Russia would be to try and force the price back up but the only way that would be possible would be to cause a massive production decrease of a major supplying nation e.g. the US (currently biggest and getting bigger) or Saudi Arabia.

^ RE: Aramco, don't believe its for sale yet, as Saudis reportedly have a lot of cash reserves, but they will be planning in case this doesn't resolve and the US keeps pumping more and more Oil.

ukle fucked around with this message at 17:18 on Jan 12, 2016

Nonsense
Jan 26, 2007

American oil tycoons are laughing at the Saudi's futile attempts.

Flannelette
Jan 17, 2010


Once SA and Iran hammer out the details of their little show war and get going I'm sure it will go back up and they can start pulling in their oil money again.

A Buttery Pastry
Sep 4, 2011

Delicious and Informative!
:3:

ukle posted:

Bigger issue is how this is completely loving over the oil producing countries who can't weather this e.g. Venezuela and especially Russia. Some estimates have Russia having a daily deficit of $1 Billion US due to the tanking of the oil price, and it can't whether it for long. Really the obvious solution to this for Russia would be to try and force the price back up but the only way that would be possible would be to cause a massive production decrease of a major supplying nation e.g. the US (currently biggest and getting bigger) or Saudi Arabia.
What Russia needs to do is to paint their planes black, pretend they're Daesh planes, then bomb Saudi wells to kingdom come.

Shifty Pony
Dec 28, 2004

Up ta somethin'


Cutting production is a problem for Saudi Arabia because if they cut production and prices go up then everyone else benefits more than they do because they are selling less oil, and they really really hate some of those that benefit. Meanwhile everyone else is pumping full speed despite losing money per barrel because in the US/Canada the bonds they issued to pay for the equipment and wells don't go away if they idle the wells and in places like Venezuela/Russia the entire government would implode without the oil money. Somebody needs to fall on the grenade but that is not going to happen.

SA's only real way to win it is to keep prices low long enough that the currently running wells dry up and are unable to be replaced because of the reduction in new well exploration.

I'll do my part by keeping my heat turned up all winter because seriously my natural gas bill is so loving cheap it is great.

MikeCrotch
Nov 5, 2011

I AM UNJUSTIFIABLY PROUD OF MY SPAGHETTI BOLOGNESE RECIPE

YES, IT IS AN INCREDIBLY SIMPLE DISH

NO, IT IS NOT NORMAL TO USE A PEPPERAMI INSTEAD OF MINCED MEAT

YES, THERE IS TOO MUCH SALT IN MY RECIPE

NO, I WON'T STOP SHARING IT

more like BOLLOCKnese
Meanwhile David Cameron is looking at his map of nature reserves with drilling sites marked all over them, and looking back over at the current oil price with a frown on his face

fade5
May 31, 2012

by exmarx

Grey Area posted:

It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

edit: As a bonus they ease China's economic crisis, helping out one of their biggest customers.
And while the American shale/fracking business is hurting, the rest of America loving loves it because it's cheap gas while also loving over Russia and Iran. Win-win-win for us.:toot:

Flannelette posted:

Once SA and Iran hammer out the details of their little show war and get going I'm sure it will go back up and they can start pulling in their oil money again.
Which one, the Syrian proxy war, the Yemen proxy war, or whatever will come of their little spat/embassy burning (aka nothing substantial)?

ukle
Nov 28, 2005
Brent Crude (the real international measure for prices now) is approaching $30 a barrel; price for oil has been very chaotic today. If the oil market doesn't shift its instability soon the rest of the markets will follow.

Support level seems to be at $30.40, guess if it breaks through that then it could get interesting.

ukle fucked around with this message at 20:26 on Jan 12, 2016

drilldo squirt
Aug 18, 2006

a beautiful, soft meat sack
Clapping Larry

MikeCrotch posted:

Meanwhile David Cameron is looking at his map of nature reserves with drilling sites marked all over them, and looking back over at the current oil price with a frown on his face

He isn't because he got what he wanted out of doing that and probably doesn't care.

seiferguy
Jun 9, 2005

FLAWED
INTUITION



Toilet Rascal
Fracking requires oil to be about $60-70 a barrel in order to be profitable. With SA artificially dropping the price to where it's a complete loss, it will start forcing companies to withdraw from fracking completely. Some major companies like Shell will probably continue to do it in hopes that the price will rise again, but smaller companies will be forced to abandon their operations.

The last artificial price drop last year already spun the Russian economy into a pretty bad recession on top of the economic sanctions. There's definitely an angle to keep doing this to put pressure on them to knock off what they're doing in Ukraine.

El Chingon
Oct 9, 2012
Is this related to the appreciation of the US Dollar? I hear this all the time but I fail to make the connection. BTW, this is/will cause a serious drop in american exports.

Zeroisanumber
Oct 23, 2010

Nap Ghost

CalmDownMate posted:



How hosed are we serously?

Depends on which "we" you're talking about. If you're talking about Venezuela or an Exxon stakeholder, you're pretty hosed. If you're talking about your average hugbox gibbis retard, it's a pretty sweet deal.

GhostofJohnMuir
Aug 14, 2014

anime is not good

El Chingon posted:

Is this related to the appreciation of the US Dollar? I hear this all the time but I fail to make the connection. BTW, this is/will cause a serious drop in american exports.

The global oil market and the US Dollar are very strongly linked because the US Dollar is pretty much the de facto currency for international trade and the oil market is about as international as you get. As the value of the dollar continues to strengthen and the value of oil stays constant because of a glut in supply, you can buy more oil with fewer dollars and thus the cost goes down (in US dollars at least).

As to a drop in exports, you have to hope that cheap fuel frees up more money for domestic consumption.

WAR CRIME GIGOLO
Oct 3, 2012

The Hague
tryna get me
for these glutes

Oil is under 30 dollars now :canada:

gaj70
Jan 26, 2013

Grey Area posted:

It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

You can't really destroy the N.A. fracking business. Sure, individual companies will go out of business, but the technology and know-how will remain. Effectively, N.A. fracking becomes a ceiling on prices.

The leadership of Iran/Russia, on the other hand, probably need the revenue to even maintain their geopolitical positions...

icantfindaname
Jul 1, 2008


Grey Area posted:

It's the Saudis doing this. They are trying to destroy the North American fracking business, Iran and Russia, all of which have far less money in the bank than KSA.

edit: As a bonus they ease China's economic crisis, helping out one of their biggest customers.

Only 13% of world oil production comes from SA, they don't have power to set prices. Most of the crash in oil prices has not been caused by SA flooding the market. And what's more, none of the oil producers can afford to cut production, because they all need the money for wars

NathanScottPhillips
Jul 23, 2009

El Chingon posted:

Is this related to the appreciation of the US Dollar? I hear this all the time but I fail to make the connection. BTW, this is/will cause a serious drop in american exports.

No it's because of fracking. That is the only reason.

WAR CRIME GIGOLO
Oct 3, 2012

The Hague
tryna get me
for these glutes

Can anyone explain how we could further utilize Slant drilling to offset fracking costs

Zeroisanumber
Oct 23, 2010

Nap Ghost

NathanScottPhillips posted:

No it's because of fracking. That is the only reason.

Fracking is one reason, the complete collapse of cohesion among members of OPEC is another.

I like to think of Vlad Putin dabbing sweat off of his head at the thought of oil dropping below $20/bbl.

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ukle
Nov 28, 2005

icantfindaname posted:

Only 13% of world oil production comes from SA, they don't have power to set prices. Most of the crash in oil prices has not been caused by SA flooding the market. And what's more, none of the oil producers can afford to cut production, because they all need the money for wars

They did have the power to set prices historically. They always had more production capacity than they used this enabled them to keep demand in check with supply as while most other countries couldn't afford to cut supply due to budget constraints the Saudis used to play it safe. The problem is they have become careless and allowed their budget to increase to where it now needs a significant price of oil to be maintained so they can't afford to cut any production and are seemingly running at full capacity (hard to tell with Aramco though).

Also even if they did cut production now it would have little impact unless they cut production by a half as the supply glut is so significant along with the amount in storage. They were the ones who started it but they have no control over it now.

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