by Zocra » Mon Feb 08, 2016 7:54 pm
by Greed and Death » Mon Feb 08, 2016 7:55 pm
by The Republic of American Freedom » Mon Feb 08, 2016 7:55 pm
Zocra wrote:Now, many people, or at least Americans have noticed that recently there are very low gas prices. Today it got in the $1.20's in Michigan with prices close to that (well, $1.30-40) all around the country.
Now, cheap oil (ergo cheap gas) is good for the consumer because of well...cheap gas. The consumer can now buy other things because they no longer need to make such sacrifices when it comes to buying products if gas is cheaper (more money in their wallets to spend---theoretically).
Cons though largely lay with the oil companies. There are so many oil (shale, fracking stuff) companies here in the US and world that oil has flooded the market, which is the main reason for the low prices. Eventually though the number of oil producers will have to decrease because a lot oil producers won't be able to survive. Then...oil prices will rise again.
How do you NSers view the future of the oil marke and are there any other obstacles you can see?
https://www.eia.gov/todayinenergy/detail.cfm?id=24532
http://www.bloomberg.com/news/articles/2016-02-08/world-s-largest-energy-trader-sees-a-decade-of-low-oil-prices
EDIT: Iran to flood market with oil?...maybe not? http://blogs.barrons.com/asiastocks/2016/01/18/goldman-iran-wont-flood-markets-with-oil/
by GreatestBanks » Mon Feb 08, 2016 7:55 pm
by Rutthenia » Mon Feb 08, 2016 7:55 pm
by The Republic of American Freedom » Mon Feb 08, 2016 7:57 pm
Rutthenia wrote:I could see oil getting much scarcer in the next 20-30 years, and therefore relying more on alternative energy.
by GreatestBanks » Mon Feb 08, 2016 7:57 pm
The Republic of American Freedom wrote:Zocra wrote:Now, many people, or at least Americans have noticed that recently there are very low gas prices. Today it got in the $1.20's in Michigan with prices close to that (well, $1.30-40) all around the country.
Now, cheap oil (ergo cheap gas) is good for the consumer because of well...cheap gas. The consumer can now buy other things because they no longer need to make such sacrifices when it comes to buying products if gas is cheaper (more money in their wallets to spend---theoretically).
Cons though largely lay with the oil companies. There are so many oil (shale, fracking stuff) companies here in the US and world that oil has flooded the market, which is the main reason for the low prices. Eventually though the number of oil producers will have to decrease because a lot oil producers won't be able to survive. Then...oil prices will rise again.
How do you NSers view the future of the oil marke and are there any other obstacles you can see?
https://www.eia.gov/todayinenergy/detail.cfm?id=24532
http://www.bloomberg.com/news/articles/2016-02-08/world-s-largest-energy-trader-sees-a-decade-of-low-oil-prices
EDIT: Iran to flood market with oil?...maybe not? http://blogs.barrons.com/asiastocks/2016/01/18/goldman-iran-wont-flood-markets-with-oil/
Personally I hope we move on from being dependent on oil, especially foreign oil.
by GreatestBanks » Mon Feb 08, 2016 7:57 pm
by Zocra » Mon Feb 08, 2016 7:58 pm
The Republic of American Freedom wrote:Personally I hope we move on from being dependent on oil, especially foreign oil.
by Gauthier » Mon Feb 08, 2016 7:58 pm
by GreatestBanks » Mon Feb 08, 2016 7:58 pm
greed and death wrote:Pro- oil is cheap so we can buy American made SUVs again
Con- Everyone's retirement just took a crap
And the environment just got crapped on
by The Republic of American Freedom » Mon Feb 08, 2016 7:58 pm
GreatestBanks wrote:The Republic of American Freedom wrote:Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.
Oil is a lasting thing, like coal.
You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.
by GreatestBanks » Mon Feb 08, 2016 7:59 pm
Gauthier wrote:The con of cheap oil is that everyone forgets about alternative energy research because Oil is Cheap, Dude.
by GreatestBanks » Mon Feb 08, 2016 7:59 pm
The Republic of American Freedom wrote:GreatestBanks wrote:Oil is a lasting thing, like coal.
You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.
I'm a dreamer not a scientist.
by The Republic of American Freedom » Mon Feb 08, 2016 7:59 pm
by Stoic Melancholics » Mon Feb 08, 2016 8:00 pm
by GreatestBanks » Mon Feb 08, 2016 8:00 pm
by The Republic of American Freedom » Mon Feb 08, 2016 8:01 pm
Stoic Melancholics wrote:Ultimately, I just want the dropping oil prices to further destroy Russia's economy.
by Zocra » Mon Feb 08, 2016 8:01 pm
by The Republic of American Freedom » Mon Feb 08, 2016 8:02 pm
by GreatestBanks » Mon Feb 08, 2016 8:03 pm
by Greed and Death » Mon Feb 08, 2016 8:09 pm
GreatestBanks wrote:Cheap oil is a net positive in the U.S. The energy stocks make up like 2% of the market and therefore really can't be pulling down on the rest too much.
Transports should benefit from this, shipping companies benefit from this, consumers benefit from this, any company that uses oil and it's a cost, benefits.
Oil has added 0.6% GDP growth to the U.S. economy, without low oil prices, we'd probably be a in a recession.
by GreatestBanks » Mon Feb 08, 2016 8:11 pm
greed and death wrote:GreatestBanks wrote:Cheap oil is a net positive in the U.S. The energy stocks make up like 2% of the market and therefore really can't be pulling down on the rest too much.
Transports should benefit from this, shipping companies benefit from this, consumers benefit from this, any company that uses oil and it's a cost, benefits.
Oil has added 0.6% GDP growth to the U.S. economy, without low oil prices, we'd probably be a in a recession.
But oil futures were securitiezed and used in collateralize debt swaps by the major banks and currently make up 75% of all market capitalization.
by Zakuvia » Mon Feb 08, 2016 8:12 pm
GreatestBanks wrote:The Republic of American Freedom wrote:Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.
Oil is a lasting thing, like coal.
You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.
by Kubra » Mon Feb 08, 2016 8:12 pm
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