Drill Baby Drill

[PurpleFloyd]

The free market works. Look at what is happening in the oil market now that the US and Russia as well as Canada and others started to tap their own reserves and brought new oil to the market. Oil stocks are getting hammered and the price of oil is headed down fast due to the big increase in production across the globe that has broken the control in production that the middle east has enjoyed for decades. Imagine how much we could drive down prices if we had brought ANWAR online 8 years ago.

[upnorth]

Nice to see gas at about $2.50 per gallon up here.

[Big Dave2]

Nice to see gas at about $2.50 per gallon up here.

I thought RRR said it was because of the election?

[smsmith]

I'm as happy as anyone about cheaper gas, but I don't believe for a minute that simple supply and demand are what drives fuel prices.

[DrJill]

Not only a plus for the consumers. I paid 2.69/gal today and

the owner of the station, a friend, told me he's making three times as much per gallon.

Normally makes about .10/gal, now .30. He sets his price based on the SA across the street.

"For some reason, and I don't know why, the big retailers have stayed united this time."

Time to look into those stocks ??

[fishersofmen]

We have been paying so much for so long gas at around 2.60 a gallon seems cheap. I would have no problem if it stayed around this rate for a while. I remember when it first hit 3.00 people were livid.

[leech~~]

I think I heard something about Britain and BP being a big player in this trying to put some hurt on the Russian market by lowering their prices.

[PurpleFloyd]

I think I heard something about Britain and BP being a big player in this trying to put some hurt on the Russian market by lowering their prices.

The permafrost is melting in the russian arctic ( Thanks Obama) and it is opening up new areas to oil extraction that have never been accessible before. They are looking at building at least 3 new arctic ports and China wants into the action as well. The ability to mine areas in the north that have been inaccessible till now is creating opportunities all over that can bring oil to the market and change the dynamic of the market.

It's time to put ANWAR back on the table.

[leech~~]

The permafrost is melting in the russian arctic ( Thanks Obama) and it is opening up new areas to oil extraction that have never been accessible before. They are looking at building at least 3 new arctic ports and China wants into the action as well. The ability to mine areas in the north that have been inaccessible till now is creating opportunities all over that can bring oil to the market and change the dynamic of the market.

It's time to put ANWAR back on the table.

Well we may have a two year wait until our buddy is gone!

[BuckSutherland]

[PurpleFloyd]

This will not be good for the ethanol industry.

[BuckSutherland]

[PurpleFloyd]

One of the reasons for blending was due to the cost of oil and E being a lower cost alternative. With oil prices down there will be less incentive to use e15 or even e10 in many areas and the Libs lost their majority so the mandates can be rolled back.

Lower oil prices kill the margins in the ethanol industry and we will soon see the cries for adding E subsidies again as farming land and rent prices have eaten up all the potential for operating at a profit as the market prices are driven down.

[pushbutton]

The Saudis literally just continued to dump on the Opec's weaker producers attempt to try to limit production. Could be a play to appease the Iraq/Syria/ISIS thingy, a favor f u at the Russians, or an attempt to stem the tide of Canadian and US production. Maybe all the above. Regardless, we should be looking at lower prices for a little while. Competition is good. Drill baby drill......

[Nick Kuhn]

The Saudis literally just continued to dump on the Opec's weaker producers attempt to try to limit production. Could be a play to appease the Iraq/Syria/ISIS thingy, a favor f u at the Russians, or an attempt to stem the tide of Canadian and US production. Maybe all the above. Regardless, we should be looking at lower prices for a little while. Competition is good. Drill baby drill......

Saudi Arabia is trying to price out Russia in the region. Given Russia's current world standing, and the US having generally a favorable relationship with Saudi Arabia, there may be more to this than meets the eye.

[candiru]

Another bubble bursting?

Energy companies go bankrupt and banks with a bunch of bad debt?

http://www.cnbc.com/id/102223823?trknav=homestack:topnews:5

[Bureaucrat]

[graingrower]

One of the reasons for blending was due to the cost of oil and E being a lower cost alternative. With oil prices down there will be less incentive to use e15 or even e10 in many areas and the Libs lost their majority so the mandates can be rolled back.

Lower oil prices kill the margins in the ethanol industry and we will soon see the cries for adding E subsidies again as farming land and rent prices have eaten up all the potential for operating at a profit as the market prices are driven down.

The production cost of corn is not directly proportional to the commodity value of ethanol.

Proof that the market is being manipulated can be measured by the #2 diesel/gasoline price spread. If you can measure it, you can manage it. I think now would be a good time to contract one years expected gas usage at a fuel bank.

No RFS ruling will be announced this year, could be a while; meanwhile demand for ethanol will increase as retail gas prices fall. 15% ethanol will become the new mandate.

[Juneau4]

The mainstay of Russia and Iran's economy is the price of crude oil. The OPEC nations and the Western world are trying to bankrupt these 2 nations. It's part of the coalition where they put some financial hurt on them, much like the gas wars in towns years ago here in the US.

[smartguy]

I have read that Russia needs oil to be at $90/barrel to break even. Considering Russia's economy is heavily based on selling energy, the end goal in the falling prices to to make Russia weaker. Payback for its thuggishness.

[PurpleFloyd]

The production cost of corn is not directly proportional to the commodity value of ethanol.

[LMITOUT]

This giant corn crop is crippling the Saudis and its wonderful to see.

ROFL!

Preposterous statement of the year.

Good grief.