Oil at 6-year low, but OPEC keeps pumping more (GGT)

[GennGreymane]

http://money.cnn.com/2015/08/11/news...collapse-opec/

The world's biggest oil producers are pumping like there is no tomorrow.
The result: Oil prices fell to $43.08 a barrel, a six-year low.
OPEC said Tuesday that its output surged to a three-year high in July. The cartel produced 31.5 million barrels a day, more than 1.5 million barrels above the ceiling it agreed to just a month earlier.
The added oil came from Iran, Iraq and Saudi Arabia. Iran's higher output - its highest since 2012 -- is a sign it is ready to take advantage of the proposed nuclear deal.

Sanctions have long restricted Iran's oil production and exports, and the country is eager to regain its status as a global energy power. Iran boosted its production by 32,300 barrels a day in July to 2.86 million a day, the OPEC report said, citing secondary sources.
Related: Gas prices poised for a steep drop

Non-OPEC oil production is also surging. The report said oil output grew faster than expected in the North Sea, China, Colombia, Russia and the U.S.
"US production remains near the highest level in four decades, although the commodity price is telling the U.S. shale sector to shrink," the report said.
The data show the fierce battle for the oil market is not easing. Oil producing countries refuse to cut supply even as the prices tumble.

[Sunseeker]

They're trying to kill the American oil-pumping industry. Because nationalized industries subsidized by the government are obviously cheaper to run than private industries that rely on capitalistic principles. The Saudis know we have no real incentive to be their allies if we no longer depend on them for oil.

[Wilian]

Too bad barely any of this reflects on Finnish fuel prices because of ridiculous fixed amount taxation.

[Independent voter]

The US is currently the top oil producer in the world at the moment but hardly anyone thinks it will last forever. A lot of producers internationally must be selling their oil at a loss as a lot of it is expensive to produce. Venezuelan oil takes a $100 a barrel, so does Russian oil, $44 dollar a barrel oil means they are losing over $50 on each barrel.

So lets see how long the US oil boom lasts. I bet it's a lot more resilient that anyone thinks.

[GennGreymane]

The US is currently the top oil producer in the world at the moment but hardly anyone thinks it will last forever. A lot of producers internationally must be selling their oil at a loss as a lot of it is expensive to produce. Venezuelan oil takes a $100 a barrel, so does Russian oil, $44 dollar a barrel oil means they are losing over $50 on each barrel.

So lets see how long the US oil boom lasts. I bet it's a lot more resilient that anyone thinks.

possibly not, but dont underestimate the relationship the gov has with oil companies.

[Sunseeker]

possibly not, but dont underestimate the relationship the gov has with oil companies.

Point in fact: we're one of the few oil-producing nations that hasn't nationalized our industry. For obvious reasons of course, but while everyone is playing tennis we're out here playing football. It's no surprise we'll eventually lose at a game we're not even playing.

[Mihalik]

I support a price race to the rock bottom, the cheaper the better as long is it completely wrecks the Russian economy. It's the only way to take away Russia's ability to continue building its military and it's Russian Empire 2.0 plans, short of a shooting war.

[GennGreymane]

I support a price race to the rock bottom, the cheaper the better as long is it completely wrecks the Russian economy. It's the only way to take away Russia's ability to continue building its military and it's Russian Empire 2.0 plans, short of a shooting war.

Do you know what your comment may have just unleashed?

[Cyberowl]

Do you know what your comment may have just unleashed?

UNLEASH THE HOUNDS!

Uh, trolls. I mean trolls.

[zenkai]

They're trying to kill the American oil-pumping industry. Because nationalized industries subsidized by the government are obviously cheaper to run than private industries that rely on capitalistic principles. The Saudis know we have no real incentive to be their allies if we no longer depend on them for oil.

^--This It's hurting Canada's economic system too

[unbound]

The US is currently the top oil producer in the world at the moment but hardly anyone thinks it will last forever. A lot of producers internationally must be selling their oil at a loss as a lot of it is expensive to produce. Venezuelan oil takes a $100 a barrel, so does Russian oil, $44 dollar a barrel oil means they are losing over $50 on each barrel.

So lets see how long the US oil boom lasts. I bet it's a lot more resilient that anyone thinks.

Well, we know there are limits since there is a finite volume. It's all been speculation on when peak oil will be reached (some say we've already reached it when you look overall across the world...the gains in Canada and US don't make up for the overall decline around the world). Regardless of the notion of how much oil remains in the ground, once we reach peak oil (whether now or in 20 years), we can't pull out the remaining oil at nearly the same rate (which is what is happening around the rest of the world).

Ultimately, we are just racing to get to the exhaustion of a limited supply. Hopefully we will be a lot further along with energy alternatives before the good times come to a screeching halt.

[Sunseeker]

^--This It's hurting Canada's economic system too

I did mention we're one of a few. I believe that would include Canada, England and Finland, a couple others maybe? I know one of the Nordic nations has a pretty good oil production. Otherwise all the middle-east oil producers, China, Russia and Venezuela have nationalized oil industries.

[GennGreymane]

I did mention we're one of a few. I believe that would include Canada, England and Finland, a couple others maybe? I know one of the Nordic nations has a pretty good oil production. Otherwise all the middle-east oil producers, China, Russia and Venezuela have nationalized oil industries.

Norway is the one you are thinking of

[Ripster42]

The US is currently the top oil producer in the world at the moment but hardly anyone thinks it will last forever. A lot of producers internationally must be selling their oil at a loss as a lot of it is expensive to produce. Venezuelan oil takes a $100 a barrel, so does Russian oil, $44 dollar a barrel oil means they are losing over $50 on each barrel.

So lets see how long the US oil boom lasts. I bet it's a lot more resilient that anyone thinks.

It's not that it's so expensive for them to get the oil from the ground, it's not. They produce ~20-25 a barrel. It's just that their governments have budgeted their break even points as if oil were selling at 100 a barrel. They're essentially getting 1/3 of the profits they need from their oil extraction to maintain the amount of government spending they budgeted.

- - - Updated - - -

Well, we know there are limits since there is a finite volume. It's all been speculation on when peak oil will be reached (some say we've already reached it when you look overall across the world...the gains in Canada and US don't make up for the overall decline around the world). Regardless of the notion of how much oil remains in the ground, once we reach peak oil (whether now or in 20 years), we can't pull out the remaining oil at nearly the same rate (which is what is happening around the rest of the world).

Ultimately, we are just racing to get to the exhaustion of a limited supply. Hopefully we will be a lot further along with energy alternatives before the good times come to a screeching halt.

I'm pretty sure that peak supply hasn't happened, but that peak demand has. Edit: I could very easily be wrong about this though.

[Tierbook]

This is definitely making Shale more efficient, since the end of 2014 the cost to drill shale has dropped 20%

[Nadiru]

This is definitely making Shale more efficient, since the end of 2014 the cost to drill shale has dropped 20%

You can say a lot of things about US energy companies, but you can't say they're slouches at coming up with cheaper ways to produce the stuff.

[Hiricine]

The funny thing about a non-sanctioned cartel is that when the deal falls apart, the only way to make your money is to sell and produce as much as you can. Outside of the Saudis, everyone is selling as much as they can not because they're trying to affect the market but because they HAVE to, in turn driving the price down and making them have to produce/sell more.

Its amazing they were able to keep the agreement going for so long, but eventually the rest of the world caught up with their production and they found themselves buried in a grave they dug for themselves.

[lockedout]

Gas price has been going down again, so that's cool.

[Deleted]

Oil the lifeblood of this world.

The oil must flow.
He who controls oil controls earth.

[breadisfunny]

If you want to fuck the Russians over, best keep oil prices low.

incoming angry cybran and whats that other russian posters name with that really grim looking avatar?