Don't look now but the oil market is collapsing

[King]

http://www.cnbc.com/id/102159466

OPEC is announcing price slashing just to stay competitive. Even without meeting the oil industry's choir demands for pipeline construction and expanded ANWR and offshore drilling, technological advances in drilling as well as increased energy efficiency standards since 2009 on new products are beginning to take their toll on big oil.

We could potentially see crude fall below $60 a barrel this winter and continue to plummet.

If President Obama does give in on Keystone XL, which I do still support, we could be seeing gas prices below $2 a gallon nationwide. Alternatively, if environmentalists are willing to wait it out, Keystone XL may lose business support as oil no longer becomes a profitable sector compared to other energy fields.

Despite this crash in oil prices, alternative energy is not being hurt in their profitability. Stocks of wind, solar, and the electric car company Tesla are still very hot mainly because their demand is now being drive by "it factor"--an Apple iPhone-esque desire by those with money to say they support wind and solar energy even if they are not the best bang for your buck.  

In a very Adam Smith way, "record oil company profits" may become a thing of the past and the invisible hand of the free market may be directing us to renewables very soon.

[King]

I've read that OPEC lowering oil prices has nothing to do with staying competitive -- it's just Saudi Arabia trying to drive US shale oil companies out of business. It's basically dumping.

In a vacuum, yes, but it's a desperation play by the Saudis. US shale has the upper hand. They're panicked about North America's energy outlook.

[King]

I don't worry about peak oil because I'm fairly certain that these technological advances have prolonged our supply of oil long enough that when we do hit peak oil we won't really be relying on it anymore.

It seems to be working out.

[King]

I'm being very America-centric in my optimism. Elsewhere isn't our responsibility.

[King]

You know the old Atlas adage, "as goes King, so goes the country."

[King]

Question, will this further hurt the coal industry?

Probably. Hopefully it will mean that gas will overtake coal in electricity generation sometime before 2035 (!!!) which is far too long.

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

Coal should be left in the ground. We may need it one day, we may not (likely not), but I sure don't want China burning it. Especially when the profit margins on it are so low to sell it to them.

[King]

[King]

Someone please post the "IT'S HAPPENING" gif

Jumped the gun bumping this thread. The more symbolic 5.00 just happened.



And in the time it took me to upload this screen shot, it fell -5.10.

Happy Thanksgiving!

[King]

Oh goody, the 2014 version of JJ's Gold thread has arrived.

Today was a huge price drop, equivalent to if the Dow dropped 1000 points. I won't update it further unless a monumental drop happens like this again.

That being said, JJ's fascination with gold was incomprehensible. Energy prices matter.

[King]

Loving this. North American energy independence will be the biggest geo-political boon to America since the fall of the Soviet Union.

I can't wait.

Not on the soccer mom's watch.
http://www.usnews.com/news/business/articles/2014/11/03/nissan-honda-chrysler-report-us-sales-increases

In another Thanks Obama™ moment, the fuel efficiency standards roadmap he fought for as part of the auto bailouts ease this. The 2015 Ford F-150 gets 22 MPG. The 2005 got 16 MPG. It gets better each and every year with goal of 30+ MPG.  The technology being embraced by the industry is actually ahead of the regulations in some cases.

Murricans won't be able to guzzle the gas this time around.

[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.

[King]

BREAKING NEWS

$59.98

[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.

[King]

It fell below $50/gal briefly today.

[King]

48.23. Great stuff. I'd say the conservative estimate for the bottom is now $35, could be as low as $20.

Wall Street continuing to prove it's full of HP, however, as DJIA continues to spiral down with this news.