OPEC keeping the crude flowing, sending prices tumbling below $70/bbl

[Indy Texas]

http://www.calculatedriskblog.com/2014/11/wti-crude-oil-falls-below-70.html

WTI crude broke through the $70 floor today and regular gasoline is now at a national average of $2.80 a gallon.

[GaussLaw]

This will be an interesting test for how much of TX/OK's growth is due to it's "free market policies" and how much is due to the oil boom.  My guess is that the Midwest/Northeast may start to outperform parts of the oil belt in economic growth again due to this.

[Bacon King]

This will be an interesting test for how much of TX/OK's growth is due to it's "free market policies" and how much is due to the oil boom.  My guess is that the Midwest/Northeast may start to outperform parts of the oil belt in economic growth again due to this.

The new price isn't really low enough to hurt the existing Texas oil economy in a major way, because oil production in that region will continue turning a profit at any price above ~$50/barrel. The only large-scale operations in the US that cost more than $70/barrel to produce are the deepwater rigs and some of the outer segments of the Bakken field in ND.

[Citizen Hats]

This will be an interesting test for how much of TX/OK's growth is due to it's "free market policies" and how much is due to the oil boom.  My guess is that the Midwest/Northeast may start to outperform parts of the oil belt in economic growth again due to this.

The new price isn't really low enough to hurt the existing Texas oil economy in a major way, because oil production in that region will continue turning a profit at any price above ~$50/barrel. The only large-scale operations in the US that cost more than $70/barrel to produce are the deepwater rigs and some of the outer segments of the Bakken field in ND.

Exactly. A lot of the Texas oil economy is in the processing market, too. Crude from around the world is shipped to Texas to be turned into refined fuels, plastics, and other products. Cheaper oil is good for such activities

[MaxQue]

It fell below 60$, now.

[Boston Bread]

I hope it slows Alberta's oil sands development. Heard it stops being profitable below the 50 line. Not that these prices will last for long.

[t_host1]

 
 There was never a shortage of oil that allegedly pushed the price up, the greed inducement by the Federal Reserve owners and its customers’- the investment banking complex, translation to the human term- Rapist. They, the rapist, received the 0% monies so to bid all the needs of human survival, commodities. Like with rape, it is a one sided pleasure where the raped are never whole again, in its life time.
 Paulson, the Federal Reserve messenger to Bush, knowing the fundamentals of economic survival for the whole would be devastated,  choose, to protect the black man about to take power, knowing that a true cycle of economics would not do well for the new and upcoming enlightenment. We were a 25 – 35 a bbl economy before the largest bank heist in human history took place.