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Utopia Talk / Politics / Bye Bye Fracking
Dukhat
Member
Fri Mar 06 21:21:20
https://edition.cnn.com/2020/03/06/business/oil-prices-opec-disarray/index.html

Oil prices crashed more than 9% to their lowest level in nearly three years on Friday as major producing nations failed to agree on supply cuts aimed at addressing the collapse in global demand caused by the coronavirus outbreak.

The OPEC cartel led by Saudi Arabia on Thursday had proposed a two-pronged approach to its key ally Russia: extend existing production cuts of 2.1 million barrels through to the end of 2020; and make further cuts of 1.5 million barrels per day.

But Russia refused to back the plan at a meeting with OPEC in Vienna on Friday, leaving the future of its three-year alliance with the cartel in doubt and raising the prospect of a huge supply glut.

...

US oil prices settled 10.1% lower at $41.28 on Friday -- the biggest one day percentage drop since November 2014. It was the lowest close since August 2016.

****

Fracking needed like $50 a barrel to break even (probably even more since reserve estimates have been way off) much less be profitable.
Habebe
Member
Fri Mar 06 21:44:52
Bad news for Iran and Norway.
jergul
large member
Fri Mar 06 23:31:42
break-even in the north-sea is 18 dollars a barrel. Break-even in Iran is 8 dollars a barrel.

I think this is more clearly bad new for fracking countries.
Habebe
Member
Fri Mar 06 23:41:12
Its bad for any nation that telies heavily on oil funds.
jergul
large member
Sat Mar 07 00:37:21
So not Iran or Norway then. Iran under sanction and Norway broke its direct dependency on oil for funding long ago (the stock market would have to fall another 40% for withdrawals from the oil fund to surpass 2.5% of its value yearly).

What about the US? You seemed to think that a vibrant oil production industry was very important a few weeks back. One of the main reasons for supporting Trump in fact.

What has changed? Why is this no longer important?
jergul
large member
Sat Mar 07 00:38:56
The US weekly oil rig count is stable btw. Price decreases have not yet factored in.
Habebe
Member
Sat Mar 07 01:36:48
Oh this definitley could be bad for the US. The energy industry has been a boom for growth.

On the up side has is $1.80/ gallon.That has to have some benefits.

Luckily its not as if its like 20% of our economy or anything.
Dukhat
Member
Sat Mar 07 01:57:24
All Fracking wells will be maintained for the most part. The capital already sunk into them is huge so they'll continue to pump even if it's unprofitable because the choice is between losing a lot of money and a lot more money.
Dukhat
Member
Sat Mar 07 01:58:17
There won't be many job losses in addition to those so far, We're already 100k jobs off our peak from 2016. Fracking has been contracting a while.
Habebe
Member
Sat Mar 07 02:03:21
On the up side the US added 273k jobs in february. Almost 100k more than anticipated.
Habebe
Member
Sat Mar 07 02:04:07
I just like fucking with Jergul sometimes.
jergul
large member
Sat Mar 07 02:40:27
Price variations in this range does not matter for Norway at all.
Wrath of Orion
Member
Sat Mar 07 10:54:23
"On the up side has is $1.80/ gallon.That has to have some benefits."

Like more people driving longer distances to better spread sars-cov-2?
Nimatzo
iChihuaha
Sat Mar 07 11:25:58
Buy gas and store it in a giant tank for later. Any serious preper has their own strategic reserve of fuel.
CrownRoyal
Member
Sat Mar 07 19:51:24
http://www...ke-beginning-all-out-price-war
sam adams
Member
Sat Mar 07 19:53:58
Well that will help offset the airline losses. Sure the planes will be empty but at least fuel will be cheap.
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