The 2008-2012 lie about oil prices

C-Burg

C-Burg

Active member
When are people going to realize that politicians will lie to get anything they want. From 2008-2012 they said drilling won't lower gas prices, and then in 2014 they are taking credit for it. In 2012 they said it would take 10 years for new wells to impact oil prices and look at it now now 3 years later. I know a lot of you dont like Fox News but the actual quotes can't be denied.

I am not pointing this out to argue about oil prices and the oil and gas industry, I am trying to figure out why people blindly follow politicians when they say something and then will follow them again after they are proved completely wrong and switch sides.

Watch the latest video at video.foxnews.com
http://www.foxnews.com/politics/2015/01/13/dems-change-tune-after-mocking-gop-for-drill-baby-drill/
 
It's not so much that I don't like fox news. It's more that they seem to be the only ones reporting this. If what you said is true, every news outlet in the country would be reporting it.
 
Oil prices are not dropping because of increased drilling.

Also people blindly follow politicians because they are superior. Politicians are the pinnacle of our developed society and it would be fucking stupid for the average person to not listen to what they are saying because 99% of the time it is for the benefit of the people.
 
13295584:Blurst said:
Oil prices are not dropping because of increased drilling.

Also people blindly follow politicians because they are superior. Politicians are the pinnacle of our developed society and it would be fucking stupid for the average person to not listen to what they are saying because 99% of the time it is for the benefit of the people.
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Oil pricing are falling because OPEC in the middle east realized that they were losing some of their business to American drillers and decided that instead of maintaining high prices and losing market share they would lower prices and attempt to bleed US drillers out.
 
13295574:ANDR01D said:
It's not so much that I don't like fox news. It's more that they seem to be the only ones reporting this. If what you said is true, every news outlet in the country would be reporting it.
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While I am surprised this hasn't been much of a story on other sites, I wouldn't expect to see certain news outlets that absolutely love Obama (MSNBC, for example) to publish an article saying that he was wrong.
 
this is what i love about NS....so many experts in so many deep complex issues.

politics, the global oil market, religious diversity, space exploration, evolutionary biology, the list goes on and on

what a diverse, informed, and intellectually enriched community we have!!!

:) love you guys.
 
A guy I know is an exec for an oil company, and we were talking about this a few days ago. Here's what he told me. The reason that oil prices are so low right now is that OPEC is trying to eliminate the competition. For decades they have been able to dictate price. Other oil producing countries have been threatening their control. They are lowering prices to squeeze them out. Yes, it will hurt OPEC, but it is hurting a lot of their competitor's economies, especially Russia's. It will hurt smaller OPEC members in South America too. It seems like they are going to sacrifice these countries by imploding their economies so they can regain control. Messing with Russia in this way is pretty scary.
http://www.dailyfinance.com/2014/12/24/oil-price-decline-could-cost-opec-257billion-2015/

"The Only Way for OPEC to Fix the Problem

OPEC is really stuck between a rock and a hard place when it comes to oil prices. If it cuts production, this could raise prices temporarily, but producers in the U.S. and around the world would go back to drilling as they've done in the last few years, and long-term, OPEC would lose market share and power.

The other option is to stay the course and try to get U.S. shale producers, Russia, and other marginal producers to give up drilling new wells, maintaining OPEC's market share long-term. This is short-term pain for a long-term gain, but not all OPEC suppliers can withstand low oil prices for long.

Venezuela, Iraq, and Ecuador rely on high oil revenues to fund their governments, and low oil prices could increase instability in those regions. All three were running fiscal deficits in 2013, so 2015 will be a terrible year if prices stay low. Fiscal deficits can increase borrowing costs and lead to inflation, among other negative side effects, some of which we've already seen in Venezuela."
 
lol.

What are you even talking about.

Nothing any politician says or does has any significant effect on the global price of oil.

Moreover, the price of oil will be back up within about 6 months, probably above $70 in that timeframe.
 
Gold is going to go up in a 1 year time frame as the broader market suffers, housing is going to start crashing in Canada about 3 - 6 months, natural gas prices are going to go down for a few months and then sky rocket as drilling is reduced due to low commodities prices.
 
Saudi Arabia needs an oil price of around $104 to balance their fiscal budget.

This is the same as happened in 1986, when Alaska and the North Sea started producing a lot of oil.

The difference being, that OPEC nations didn't need higher oil prices then to balance their fiscal budgets. Therefore, the market now is driven by futures bears - all looking for a bottom and pushing prices lower on the age old adage of supply/demand. $45 has been tested, it may go further, but hard to see it going to an 09 low of $33 but it might if the market cannot find consensus on "the bottom", but I think it will recover mid-late 2015 - I agree with JD about $70.

Periods of over-supply historically have been short lived, and as im sure everyone is aware, it only takes one middle eastern upset to send the oil price sky rocketing - just like in the Arab spring uprisings.

The fundamental's really are not that bad - I would just take the opportunity to buy some amazing value energy stocks right now - Sea Drill is my Favorite (SDRL).... drilling companies always see an immediate correlation to oil price, and SDRL has dropped from around $40 to $10 - they will go back up with oil price.
 
Oil prices are dropping because the Saudis are flooding the market. The can produce a barrel of oil for much cheaper than elsewhere so the can ride this out while all of the wells in the US and Canada get screwed
 
13295574:ANDR01D said:
It's not so much that I don't like fox news. It's more that they seem to be the only ones reporting this. If what you said is true, every news outlet in the country would be reporting it.
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Most U.S. News outlets have a lick of Liberalism. That is why they will keep quiet
 
13296582:Rusticles said:
Projects are starting to get postponed/cancelled and some lost jobs. "BERTA" still seems resilient though
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I'm up at suncor Fort hills right now, they just cut 1000 jobs this week. Gotta make as much money while it's available, hopefully I'll be able to stay employed while oil is down, suncor is saying that This project will go on no matter what, but you never know.
 
13297322:liftedresearcher said:
I'm up at suncor Fort hills right now, they just cut 1000 jobs this week. Gotta make as much money while it's available, hopefully I'll be able to stay employed while oil is down, suncor is saying that This project will go on no matter what, but you never know.
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And most of those 1000 were probably just some fat that they were trimming, unessential trades.

I think the only projects their cutting are the ones that are early in planning, kinda doubt their going to stop the ones that are halfway through.
 
OP needs to research his shit before spewing it out. FOX news is not a source, its a 4th person garbled biased turned from 3rd party information, then turned into a circus to be marketed as news.

Ill run you through a logical sequence why oil has now fallen.

Asian markets developed a boom in the mid 2000;s, which drove the world demand for oil up. Prices rose because supply could not keep up yet. Investor got interested in the price rise, and began to invest in the production of oil in areas before considered too expensive to retrieve. The need of oil was created from the war in the middle east from the west.

In 2008, the first wave of recession hit the west. Spending dropped, industries began to destabilize, Western countries cut trade with Asia (not hostile, just a surplus in commodities and debt). Traded slowed, production slowed in China ( and other asian countries) and growth began to stagnate. Still in North America, oil producers were trying to pump as much as they can get. Suddenly, in 2014, a huge surplus in oil was created. Demand dropped, so prices dropped.

On the world market, investors are rushing to sell oil stock because of the poor growth in Asian economies and signs of weakness in the European Union, Russia and Canada. This would not affect oil prices severely , but now we must take into account Saudi Arabia and the middle eastern oil. It cost them less to pull from the ground, so they make a profit no matter what.

OPEC producers asked the Saudies to cut oil supply to avoid market correction that would put developped countries at risk for recession. Saudis refused, but the main reason was to stop the extremist forces from getting rich off Iraqi and Syria oil. At the same time Russia is suffering the oil prices as a sanction again Crimea.

So politicians have a say in oil price? not a bit. They cant do SHIT! All they can do is tax it. OPEC,IFM and other world economic organizations can index the price of oil. Major suppliers and market demand affect prices, the rest just keeps track of it.

The politicians that should be grilled are the ones that already spent the forecasted income from the oil price jump. Now, they are in debt and have a worthless supply of oil they have to store. I look at you Alberta...Jim Prentice...Stephen Harper... Joe Oliver...John Baird
 
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