tag:blogger.com,1999:blog-8861605.post8471105283491511762..comments2024-03-24T11:01:27.668-04:00Comments on Resource Insights: Turnabout: OPEC shows U.S. oil producers who's bossKurt Cobbhttp://www.blogger.com/profile/05330759091950742285noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8861605.post-82182780561999075362014-12-04T08:09:38.043-05:002014-12-04T08:09:38.043-05:00But why are they doing it, Kurt? What does this si...But why are they doing it, Kurt? What does this signal geopolitically? A realignment away from the US on the part of Saudis? If so, why?Spirited Ravenhttps://www.blogger.com/profile/08494811283790656055noreply@blogger.comtag:blogger.com,1999:blog-8861605.post-23244170312306046632014-12-03T21:15:50.209-05:002014-12-03T21:15:50.209-05:00@Sandy Lawrence I think there will be some low-key...@Sandy Lawrence I think there will be some low-key lobbying by the industry, perhaps to expand and at least maintain tax preferences and other programs. Takeover by foreign companies will receive a lot of scrutiny. I'm not sure such takeovers would succeed only because of the regulatory hurdles that can be placed in their way. There is one very strategically smart thing the U.S. could do, but it won't do it. Stay tuned for my next piece.<br /><br />@Anonymous #1 As I said in comments on in my piece <a href="http://resourceinsights.blogspot.com/2014/11/did-russia-and-china-just-sign-death.html" rel="nofollow">Did Russia and China sign a death warrant for U.S. LNG exports</a>, U.S. and European policy has now pushed away all attempts by Russia to integrate with Europe. Such is Russia's historical fate, always to be on the periphery of Europe looking in. And, that often has led to trouble. Whether Putin's pipeline gambles will work out as he wants them to is mere speculation. But, the failure to accept Russia's overtures early in Putin's administration for greater integration (with security guarantees) will be seen as one of the great missed opportunities of our time.<br /><br />@Anonymous #2 I agree that those who don't understand the oil markets base their opinions on whatever they see in the moment. In 2008 they thought that oil might be peaking and there was much talk of it then. Despite three years of prices hovering above $100 a barrel at daily averages higher than 2008, they were convinced by oil industry propaganda that somehow oil was abundant again. The price swoon in 2008 and early 2009 didn't change the long-term picture. This most recent price swoon will actually set us up for a price spike down the road. It takes a lot of paying attention to understand such things. Most people don't have the desire to understand.Kurt Cobbhttps://www.blogger.com/profile/05330759091950742285noreply@blogger.comtag:blogger.com,1999:blog-8861605.post-87785984089374457012014-12-03T11:46:01.923-05:002014-12-03T11:46:01.923-05:00Peak oil at 65$ is a little bit disappointing.
I ...Peak oil at 65$ is a little bit disappointing. <br />I understand that a little drop in demand caused a big drop in price, and world oil production is flat not increasing. <br />But peak oil got a slap on the face by those who read the news superficially. <br />DidierAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8861605.post-17875493598238310822014-12-03T05:25:51.221-05:002014-12-03T05:25:51.221-05:00Aka,
sir, any thoughts on cancellation (re-routing...Aka,<br />sir, any thoughts on cancellation (re-routing?) of the south stream pipeline?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8861605.post-57725535996239399492014-11-30T17:20:25.667-05:002014-11-30T17:20:25.667-05:00An economist would argue that cartels are intrinsi...An economist would argue that cartels are intrinsically unstable because of divided + individualistic loyalties of the companies or countries involved. Even before the recent OPEC meeting in the aggregate the member countries were pumping almost 31 mbpd instead of the agreed-upon limit of 30 mbpd.<br /><br />My query has to do with lobbying that the domestic oil industry might resort to given the severe economic squeeze which is now hampering their ability to go into the credit markets.<br /><br />Will they ask for an expanded oil depreciation allowance? Accelerated depreciation on drilling equipment? Federal guarantees on existing or new loans? Seek takeover by majors or perhaps even foreign oil companies, much as CNOOC bid for Unocal in 2005? Would should be anticipated here?S. W. Lawrencehttps://www.blogger.com/profile/01654864579983316386noreply@blogger.comtag:blogger.com,1999:blog-8861605.post-42479727744229554462014-11-30T16:38:22.461-05:002014-11-30T16:38:22.461-05:00And here I thought OPEC's decision was telling...And here I thought OPEC's decision was telling us that it is done as an effective cartel. A history of members "cheating" on quotas is now just that, history. Forget the price needed to maintain state budgets, we'll sink the USA's oil industry first. Either that or the members know higher prices will cut demand and their revenue.<br /><br />Exciting year ahead.Ken Barrowshttps://www.blogger.com/profile/02713400119168020630noreply@blogger.com