Home Forums Hunting & Shooting Hunter's Campfire Who here really thinks domestic drilling lowers the price of oil/gas?

Drilling = good thing and lower prices

Very simple: Supply and demand.

If there's more supply and demand stays the same, prices will decline.

Oil is a fungible world commodity and the more there is on the world market, the lower the price will be assuming demand stays the same.

In a free market, no one "controls" the price. It's willing buyer/willing seller.

GunGeek: "I", think drilling (and fracking!) domestically "really" lowers the price of oil/gas!
Apparently you are ignorant enough to think it doesn't???
Get yo'head out'a yo'ass boy!
Pay a little more attention to what has happened to the price of oil/gas in the last year and you won't be asking such stupid questions.
Sheesh!
Hold into the wind
VarmintGuy

It has already done so. Why do the think you the price has fallen so much? It is because America is becoming a major producer of Oil. The Saudis (who can produce oil and drill cheaper than we can) are showing US they are still the boss. All we have to do is play along and lower our production and Oil will go back up in price. Until we do the Saudis will continue to overproduce and keep the price cheaper than is economical for US to drill these Shale plays. They will actually recapture some of the market share they have lost because we can't drill at much lower prices.

Jim

Remember guys, this was Gungeek's assertion back in 2011. We are now seeing the results of "Drill, baby, drill".

Yeah, I kept trying to tell you guys...

We already have proof. When the supply of oil is reduced the price increases. Like when OPEC lowers production. When the supply is increased the price goes down. Like it is doing now.

I always learn a bunch from these threads.

I paid as high as $3.84 last summer for premium, I filled up yesterday at $2.79.
Something is different.

Supply and Demand is what controls the market and price, not where it is drilled. Drilling here just lower our dependent on Middle Eastern Oil

i paid 3:08 for diesel this morning.

Supply will be curtailed by lower world oil price but a reduction in drilling from the Eagle Ford will probably not be part of it.

According to a Citi Bank report Eagle Ford east and west are both producable down to about $40/barrel. The Canadian tar sands and some of the Permian stop being econimical to drill at $50 or so. Supply will be reduced eventually and the market balanced.

Well, maybe a better question; what is driving oil prices to $50 a barrel?

The threat of $45:00 a barrel oil....

Mostly worldwide demand is way down but production is way up. And it's not just US produciton, it's mostly OPEC. Saudi Arabia just can't resist this opportunity because they're unlikely to have it again. With oil under $80.00 per barrel, they can seriously screw the US fracking industry because every barrel that's fracked at these prices is a big money loser for US oil companies. At some point, they'll have to shut it down because this isn't sustainable.

Meanwhile, low oil prices means Iran is getting royally screwed also. So oil prices will fall and stay under $80.00 per barrel for at least a year, mark my word.

This isn't exactly a "real" market, it's artificially low for a very specific purpose.

Too funny, you can't admit you were wrong.

There is no such thing as a fake market, one of silliest things I've heard. There are a variety of forces that drive the world oil market, sometimes those forces drive prices up, sometimes they drive them down. But those forces, the market, and the price at the pump are all very real.

Most fracking is done to extract the Natural Gas.

The oil itself is a "by-product", and not really the reason for drilling and fracking

Claiming the market is "false" is, well, FALSE

Most fracking in North Dakota is for oil.They are still trying to get the natural gas used up.ED K

UHHH, not me, the greed of man will see to that.