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<blockquote data-quote="1krr" data-source="post: 2670988" data-attributes="member: 750"><p>I think there is a couple things going on here. US shale thinks OPEC's move was targeted at them but I don't really buy that. The US never consumed much OPEC oil anyway. I think it was primarily targeted at Russia who is the number 2 exportor in the world. OPEC rightly saw the weekness in Russia caused by current tensions and sanctions, and a general trend against Russia and they took the opportunity to put a serious hurt on Russia's economy and by extention, its ability to produce exportable oil/gas. </p><p></p><p>Secondarily, there is a world-wide weariness of oil and gas in general. Between 2000 and 2008, the cost of a gallon of gas went up 3-4x. Most people see the arguement about fracking as unrelated to earthquakes as silly. Oil industry after years of denials has recently begun claiming that it isn't fracking but disposal wells which, ironically, are disposing of waste products from fracking. The number of people accepting climate change as a function of fossil fuel comsumption is well passed the majority. Even those who can afford the hit to the bottom line that many working folks can't are seeking to reduce their own personal dependance on fossil fuels because they feel raked over the coals by oil; not just to save money but to not have to spend money with oil companies. This paragraph might sound anti-oil/gas but these are some of the market drivers I see as US demand is under the curve and there is a good amount of bad vibe from the general public to the industry and that can be a powerful force in the market. </p><p></p><p>I think Oklahoma is going to feel a good pinch by this since we've really learned nothing from the 80s when we had the last crunch. We haven't diversified our economy or really hedged our bets in any way and it's unfortunate because the guys getting laid off when their rigs get stacked don't have an alternative. Farmers who are mineral owners dealing with on-going drought and years of lower yields are going to loose needed income while the state has not spent the money it could have earned from the oil boom to improve water and other resources. We haven't invested in tranisional education where a guy could come off the rig and build a wind turbine (if you wanted to stay in energy) or hell, build anything. We've let manufacturing leave and really done nothing to cultivate any industry other than oil and gas. </p><p></p><p>It is what it is I guess. I hope the guys on the ground affected by this can find a better gig and maybe when we get to the otherside of this little bidding war, we'll figure out we need a better way.</p></blockquote><p></p>
[QUOTE="1krr, post: 2670988, member: 750"] I think there is a couple things going on here. US shale thinks OPEC's move was targeted at them but I don't really buy that. The US never consumed much OPEC oil anyway. I think it was primarily targeted at Russia who is the number 2 exportor in the world. OPEC rightly saw the weekness in Russia caused by current tensions and sanctions, and a general trend against Russia and they took the opportunity to put a serious hurt on Russia's economy and by extention, its ability to produce exportable oil/gas. Secondarily, there is a world-wide weariness of oil and gas in general. Between 2000 and 2008, the cost of a gallon of gas went up 3-4x. Most people see the arguement about fracking as unrelated to earthquakes as silly. Oil industry after years of denials has recently begun claiming that it isn't fracking but disposal wells which, ironically, are disposing of waste products from fracking. The number of people accepting climate change as a function of fossil fuel comsumption is well passed the majority. Even those who can afford the hit to the bottom line that many working folks can't are seeking to reduce their own personal dependance on fossil fuels because they feel raked over the coals by oil; not just to save money but to not have to spend money with oil companies. This paragraph might sound anti-oil/gas but these are some of the market drivers I see as US demand is under the curve and there is a good amount of bad vibe from the general public to the industry and that can be a powerful force in the market. I think Oklahoma is going to feel a good pinch by this since we've really learned nothing from the 80s when we had the last crunch. We haven't diversified our economy or really hedged our bets in any way and it's unfortunate because the guys getting laid off when their rigs get stacked don't have an alternative. Farmers who are mineral owners dealing with on-going drought and years of lower yields are going to loose needed income while the state has not spent the money it could have earned from the oil boom to improve water and other resources. We haven't invested in tranisional education where a guy could come off the rig and build a wind turbine (if you wanted to stay in energy) or hell, build anything. We've let manufacturing leave and really done nothing to cultivate any industry other than oil and gas. It is what it is I guess. I hope the guys on the ground affected by this can find a better gig and maybe when we get to the otherside of this little bidding war, we'll figure out we need a better way. [/QUOTE]
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