The oil game

[POPPASMURF]

I had some thoughts about what the likes of Saudi Arabia are doing to the world economy and in particular the USA and Canada. They have repeatedly stated this over production is aimed at the USA and it's development of shale oil and becoming oil self sufficient and Canada who with the oil sand has about 30% of the world's reserves. The Saudis wish to prevent both coming on stream thereby making North America oil self sufficient. Would this not be a good time for both Canada and the USA to slap an Anti Dumping import tariff on all imported oil as it is below the cost of production of oil in North America. By doing this we will allow the continued development of shale oil and the oil sands till neither will be allowed when the world is scheduled to do away with hydrocarbon energy in 2050. Canada and the USA will then, in the meantime, have until 2050 to plan a reasonable exit from hydro carbon fuel. We would then let the Saudis, Iranians, and other robber states of the world fight amongst themselves when they loose their largest markets. The slight increase we each will pay at the gas pump is very small compared to the social costs of all the unemployed oil workers both nations now have to support.

[TonyDi]

While it may appear that mid east countries are "dumping" oil in the open markets, it's a falsehood. The current glut is coming from multi nations. Iran has had sanctions lifted and now are selling in the market to finance their economy. It is as harmful to them as it is to North American oil producers. This link can show what's happening in Saudi Arabia alone.

Saudi Arabia seeking international loan of up to $10 billion: report - MarketWatch.com

In the mean time I'm going to enjoy low fuel prices at the pump.

[Hit_the_Rhod]

Actually, anti dumping laws apply to similar products and processes. Although the end result of shale oil or tar sands oil (like in the US and Canada) and the oil pumped directly from the ground (other places) are still heating oil, gasoline, diesel, etc, since they are derived from different raw materials, and through different processes, I don't believe the anti dumping laws would apply.

But like you, I am enjoying paying $1.629 for diesel at the pumps!

[swampdog2]

Enjoy the low fuel prices while you can , because they will go back up and when they do lets don't hear all that crying the oil companies are getting rich and screwing us , lets remember just like the farmer, oil companies don't set the price they just try to survive until they can make a profit again ,It's supply and demand ! and the oil companies will have their day !SOON!

[stan5711]

I to live in the oil rich Permian basin in west texas,in the Midland/Odessa area it's been hit hard,I'm talking 10's of thousands laid off,people has shut down business that's been around for 30 or 40 years.When things were rockin and a rolling I paid $2.65 a gal,now I pay $1.85.I would gladly pay the 2.65 again.

[Scarab0088]

Discussions involving politics are prohibited by the Community Rules (unless discussing RV specific legislation).

Several posts were removed due to this CR.

PLEASE, stay on topic leave out the political viewpoints.

iRV2 Staff

[UTTransplant]

I have skin in this game. I grew up in Oklahoma, and a lot of HS friends quit school to become well-paid roughnecks. It was fine for 10 years until the work dried up and they are left without jobs or training. The problem with extraction economies (oil, minerals, timber, etc) is that eventually the resource is used up. When that happens the jobs go away, and usually the land is scarred. We own a small family interest in oil, gas, and wind, and the wind is paying better now than the oil. It will also last a lot longer.

I have enormous sympathy for those who have lost their jobs, but they need to look farther ahead and diversify. Have you seen the pictures of the Canadian shale oil fields? A rape of the land!

[VanDiemen23]

What's really going on here is that the Saudis and to some degree the US and its allies are driving down the cost of oil because it hurts Iran, Russia, and the smugglers supporting a number of terrorist organizations in the Middle East. It's easy to blame the Saudis because they are the organization that has the most excess capacity and can swing the market easier than anyone else - but this is all meant to put the hurt on Putin and the ayatollahs. Hurting ISIS and some of the players in Libya and Iraq is a secondary benefit.

[dennis45]

Originally Posted by UTTransplant

I have skin in this game. I grew up in Oklahoma, and a lot of HS friends quit school to become well-paid roughnecks. It was fine for 10 years until the work dried up and they are left without jobs or training. The problem with extraction economies (oil, minerals, timber, etc) is that eventually the resource is used up. When that happens the jobs go away, and usually the land is scarred. We own a small family interest in oil, gas, and wind, and the wind is paying better now than the oil. It will also last a lot longer.

I have enormous sympathy for those who have lost their jobs, but they need to look farther ahead and diversify. Have you seen the pictures of the Canadian shale oil fields? A rape of the land!

I suggest doing a little more research and get your facts straight on what you refer to as Shale oil fields. First, it's actually Sand and after the oil has been extracted from the sand the land is actually more productive to vegetation than before.
[Mod Edit]

[Selah]

Putting a terrif on imported petroleum might be a double edged sword. The U.S. Is the fifth largest exporter of refined petroleum products, including gasoline and diesel, in the world. Far above that of Sudia Arabia or other Mid East countries.
If we put a terrif on their crude oil products they might do the same to the US refined products.
All I am saying is that I don't know whether that would be good or bad.

[dnystrom]

I'm wondering how bad the ethanol corn farmers in the midwest are taking a hit also.
They were making out very well when the prices were high. Not to mention all the tax breaks they get.

[rapid rick]

Poppasmurf,

Are you saying that I have to convert my motorhome to all electric by 2050?
I'm gonna have to get started today, cause I'll be 92 in 2050, and I love to procrastinate.

[emuller1]

I have enormous sympathy for those who have lost their jobs, but they need to look farther ahead and diversify. Have you seen the pictures of the Canadian shale oil fields? A rape of the land!

Ah ignorance is blissed. If you really want to see rape of the land go and view the dirtiest oil in the world, just down the road in California. In addition the highest emitter of ethane gas in the world is from the Balken field just north of you.
Also it is oilsands, not shale and definitely not tarsands.

The mining aspect of the oilsands in Canada is no different than any other surface mine in world, you know the ones that produce all those exotic metals for your solar panels, windmills and batteries.

Just a point of fact, the majority of the oil extracted from the oilsand is done through a SAGD or CSS process not mining.

[dennis45]

Ah ignorance is blissed. If you really want to see rape of the land go and view the dirtiest oil in the world, just down the road in California. In addition the highest emitter of ethane gas in the world is from the Balken field just north of you.
Also it is oilsands, not shale and definitely not tarsands.

The mining aspect of the oilsands in Canada is no different than any other surface mine in world, you know the ones that produce all those exotic metals for your solar panels, windmills and batteries.

Just a point of fact, the majority of the oil extracted from the oilsand is done through a SAGD or CSS process not mining.