Lower prices at the pump going forward.
Thanks, Mr. President!
For crude oil, this looks like 2009 all over again
To one market technician, crude oil is trading like it's 2009 all over again. And that could be very good news for the oil bulls. [more]
http://finance.yahoo.com/news/crude-...100000705.html
I feel bad for those people who went out and bought gas guzzling SUV's thinking this crash in oil prices was permanent.
If the oil industry knows they can charge $120/barrel and people will still buy, there's no reason to believe it won't go back there.
Note- Halliburton posted much better than expected earnings today- as a result of laying off 9,000 oil field related U.S. workers and cutting expenses.
Halliburton profit surges past expectations as cost cuts pay off - Yahoo Finance
It now looks like the number of active drilling operations has dropped by more than 40% over a year ago.
So...that old "Drill-baby-drill" is NOT happening- not because of any government push back, but simply because of MARKET FORCES.
Since the price of oil is down, there is no longer the same demand for new wells, and therefore the number of new wells is falling.
With the decline in U.S. Consumption (due in large part to much higher EPA fuel economy standards), and the lowering of the price of oil- it jsut makes more economic sense right now to LEAVE IT IN THE GROUND.
At least until demand/production balance out again, and prices begin to climb.
See how that free market thing works?
No need to open new East Coast off-shore rigs, eh? When thousands of leases issued by the Federal Government in the Gulf of Mexico lie idle and unused.
Rigzone is showing that the Gulf of Mexico is only operating 38% of offshore rigs right now, compared to about 55% one year ago.
RIGZONE - Rig Utilization by Region
I guess Gulf of Mexico drilling is less profitable right now.
Supply and Demand rules!
E10 running $2.34 a gallon in Boiled Peanut GA. No Sir, I Don't Like IT!;swear
$2.59 to $2.33 around here.
May the force be with us.
When the Mighty Dollar loses value Oil and Gas go UP!
DXY Index Quote - U.S. Dollar Index (DXY) Index Price Today (DXY:NYE) - MarketWatch
dollarindex.jpg
E10 Averaging $2.35 a gallon in BP GA.
When Gasoline is cheap DEMAND should be HIGH, and supply needs to follow suit or the price will rise. So someone wants price to go up, who could that be? The Government gets more taxes when demand is high and more is pumped. Federal Tax is around 18% a gallon States vary but really I don't want to live in Taxafornia!
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