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mikeg205
11-14-2012, 11:40 AM
Looks like the US will soon be the leading energy exporter to the world. Hope that translates to lower prices at the pump over the next few years.

We saw natural gas prices collapse. Anyone think we'll see sub $2 a gallon gas ever again? If you're laughing that's ok... :)

Funny we went from worrying that we found all the oil on the planet to we have 20 shale reserves in North America the size of Saudi Arabia - Booyaa...

mzimme
11-14-2012, 11:47 AM
Looks like the US will soon be the leading energy exporter to the world. Hope that translates to lower prices at the pump over the next few years.

We saw natural gas prices collapse. Anyone think we'll see sub $2 a gallon gas ever again? If you're laughing that's ok... :)

Funny we went from worrying that we found all the oil on the planet to we have 20 shale reserves in North America the size of Saudi Arabia - Booyaa...

As long as the demand stays steady, there is zero reason to believe price will drop. As it is now, there's a surplus of oil and the price still reaches record highs. Damn the oil business. I miss my high school days when my dad gave me a $20 bill for my gas for the week. I'd fill up my Mustang, and still have about 3 bucks left to buy a coke and some slim jims.

thatsmrmastercraft
11-14-2012, 12:19 PM
It's not supply or demand driving the oil/gas price........it's the futures that have driven it to where it is.

houtexX30
11-14-2012, 12:59 PM
We saw natural gas prices collapse. Anyone think we'll see sub $2 a gallon gas ever again?

I know I'm in the minority, but i sure hope not!!!!

mlawler34
11-14-2012, 01:09 PM
The current consensus is that if prices were to drop dramatically that companies would lack the necessary capital to drill in places like North Dakota, where there is significant resurgence of drilling and increased production per day from the region as new technology has allowed. Decreased capital would lead to less domestic production and put us again at the mercy of imports. Leveled prices over the near term (2-5) years would be great and I would think not far fetched.

captain planet
11-14-2012, 02:24 PM
Looks like the US will soon be the leading energy exporter to the world. Hope that translates to lower prices at the pump over the next few years.

We saw natural gas prices collapse. Anyone think we'll see sub $2 a gallon gas ever again? If you're laughing that's ok... :)

Funny we went from worrying that we found all the oil on the planet to we have 20 shale reserves in North America the size of Saudi Arabia - Booyaa...

Maybe for a short while (couple months, maybe), but the rapid-fire pace of the printing press that is the federal reserve is devaluing our dollar. Oil being a global commodity will be priced based on the value of our dollar....which is falling.

Jorski
11-14-2012, 03:00 PM
The current cost of shale oil is between $40 and $80 per barrel...not getting $2.00/gallon gas out of that.

mikeg205
11-14-2012, 03:06 PM
Demand is falling for oil as a commodity and West Texas has decoupled from Brent prices. No one thought natural gas prices would have collapsed they way they did either. Remember not to long ago the mantra was we are peak oil.

I agree on the devaluation of the dollar - however we are headed toward our 3rd boom in oil. 1901 - Spindletop in east texas and then in 1930...and now we know that we are sitting on at least 20 reserves the size of Saudi... big prosperity followed those booms....

One can only hope...

mlawler you are correct, however oil has been dropping. and while the number of natural gas rigs is way down and dropping while the number of oil rigs is way up and growing right now.

http://www.eia.gov/dnav/ng/ng_enr_drill_s1_m.htm

In 2015 we will have our first LNG export facility in Texas - alot of money is going to flow in from that..

God I hope the big "O" does not get credit for the boom... it's going to be an interesting 4 years....

Well if not $2 a gallon gas - maybe an economic recover?

GoneBoatN
11-15-2012, 12:56 PM
Then again the oil companies could be like OPEC and control supply to keep the price inflated to maximize profit.

mikeg205
11-15-2012, 02:05 PM
Then again the oil companies could be like OPEC and control supply to keep the price inflated to maximize profit.

They tried that with natural gas and was unable to....we'll see what happens going forward with exports. Shell is building 3 plants in the U.S. to increase exports..those words from the CEO this am on CNBC