Don't look now but the oil market is collapsing

[Citizen Hats]

While I'm happy to stick it to Moscow, Tehran, and Caracas (and somewhat to Edmonton, for that matter), cheap oil is utterly bad for the world. I would rather the carbon-rents from such a policy not accrue to autocratic governments, as long we aren't serious about carbon pricing, it still seems more sensible to me to accrue those rents to tight oil autocrats than to suburbia. 

Would be a really good (and relatively painless) time to impose an equivalent $30/barrel carbon tax, and use it to fund infrastructure/social spending/tax cuts/whathaveyou. To bad we can't have such a sensible government

[Brittain33]

Did anyone predict this--Saudi Arabia shanking the North American petroleum industry? They're going to do to Keystone XL what Tom Steyer likely can't.

[🦀🎂🦀🎂]

I wonder how a world of $60 oil will affect alternative energy. Already our country's brand new £96 per kWhr subsidy for the Hinkley nuclear plant looks like a white elephant, but this could also undermine efforts to introduce more energy efficient/hybrid cars on the market. Historically, cheap oil has led to a rise in people buying guzzlers. This could be very time painful for nuclear plants and renewables alike, especially with the failure of the ETS. Hopefully cheap gas and oil can take down coal though.

Also bad news for oil exporters - Iran for example needs at oil at $140 a barrel to balance its budget sheets. Not great news for the Scottish on the eve of getting financial autonomy as well.

I've often wondered whether it is feasible to simply export all our coal to China. I'd doubt it.

The investment in new ports in the West Coast needed (most of which - understandably - don't wish to subsidise great new ports for the benefit of Wyoming) would make it non-viable. Coal is so cheap at the moment (awash from supplies from Indonesia and Australia) that really any large investment (like Abbott's manic new white elephant in Queensland) should be seen as a ... risky venture.

[Yelnoc]

This article, which discusses the tensions between rich and poor OPEC countries, was interesting to me.

http://www.reuters.com/article/2014/11/28/us-opec-meeting-shale-idUSKCN0JC1GK20141128

[Person Man]

The good news is that oil is being forced to compete between different regions and different sources of energy. The bad news is that it's competing with these other sources. The silver lining is that it's becoming more expensive to produce and alternatives are becoming cheaper to produce. Maybe this price war coupled with the costs of production will cause reduced profitability before it can reduced competition.

[memphis]

I saw gas for $2.36 today. I like where things are headed.

[The Vorlon]

Almost unnoticed, the shift in oil production patterns represents one of the largest economic/military/geopolitical shifts since the 2nd World War.

The US will achieve energy independence in the 2018/2019 timeframe.

As recently as 2011 the US bill for imported oil was about $320 billion dollars, the economic benefits of NOT sending this $320 billion over seas as well as the huge number of jobs created is a significant shift.

In addition. the military / geopolitical shift could be even larger.

For decades the US military/diplomatic posture has been to (essential) prop up the Mid East oil pumping despots, and keep a dozen or so carrier battle groups ready to go to keep mid east oil flowing by any means required.

The rational for both of these postures disappears when the US is seft sufficient in energy, and suddenly of (generally spineless) european "friends" have to work about how they will (independant of the US) keep the oil flowing from the Gulf.

Interesting times ahead :-)

[Indy Texas]

[King]

After stabilizing for about 10 days, the deluge has returned.

[King]

Another huge single day crash today. Down 5% to 60.75. We're going below 60, folks.

Von cluck, deluge, etc.

[King]

More importantly, it was noted by the supporters of Keystone XL last year that the economic feasibility of the pipeline required oil to be above $65 a barrel, preferable $75 a barrel. $60 and falling is madness.

http://www.usatoday.com/story/news/nation/2014/12/09/roof-ledge-rescue-phoenix/20132867/

It's becoming highly possible TransCanada will drop the project on their own.

[angus]

It's becoming highly possible TransCanada will drop the project on their own.

yep.  I have 100 shares of TRP which I bought six years ago at about 36 dollars per share.  I should have sold at $58 back in September when it peaked.  I was holding out for $70 and it seemed headed in that direction at the time.  Today it is about 45 dollars and falling.  

Oh, well.  I paid $2.69 per gallon for fuel yesterday, so I guess there's a silver lining.  I fill up my car about once every three weeks and it holds 12 gallons, so getting a dollar off per gallon saves me about 200 dollars per year.  It's not a bad trade-off really.

[memphis]

I'm as pleased as anybody that oil is plummeting. And it may well stay low for several years. But don't think for a second that we'rd done with pricey oil forever. I was saying the exact same thing when it was high. It's been an extremely volatile commodity since man first realized its utility. Infrastructure, like pipelines, are longer term investments and one year's price is not the only factor under consideration.

[MASHED POTATOES. VOTE!]

Another huge single day crash today. Down 5% to 60.75. We're going below 60, folks.

Von cluck, deluge, etc.

Where is J.J. when he's needed?

[Landslide Lyndon]

Another huge single day crash today. Down 5% to 60.75. We're going below 60, folks.

Von cluck, deluge, etc.

Where is J.J. when he's needed?

He would probably say that oil seems cheaper because we don't take into account the Bradley effect.

[Mehmentum]

Oil price crash won't kill solar power: http://www.cnbc.com/id/102254283#.

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[Simfan34]

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What?! I call BS on that. And even if not, the issue of space would still remain a major barrier.

[Sbane]

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What?! I call BS on that. And even if not, the issue of space would still remain a major barrier.

The only future for solar is in individuals agreeing to put up solar panels on their property/houses. Or else the technology just won't make sense.

[The Mikado]

The collapse in oil prices could well be the most important news story of the year.

[King]

BREAKING NEWS

$59.98

[Ban my account ffs!]

You can now get a barrel of oil for the price of a cheap microwave!

[King]

You can now get a barrel of oil for the price of a cheap microwave!

Pretty soon you'll need to wheel a whole barrel of oil to the market to buy a loaf of bread. The end is near.

[memphis]

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What?! I call BS on that. And even if not, the issue of space would still remain a major barrier.

You need to leave New York City more often. Space is a resource this country has plenty of.

[Yelnoc]

Currently...

WTI Crude Oil - $54.11 ▼ -2.36, -4.36%
Brent Crude Oil - $59.27 ▼ -1.91, -3.22%

The BBC warns North Sea oil industry 'close to collapse.'

A NYT columnist on Finding the Floor, or Ceiling, for Oil Prices

Read more oil price stories here.

[they don't love you like i love you]

So Scotland cle.arly made the right choice. Wonder what percentage "No" would get today