The old boys down home have been riding this coaster for ages.

http://www.dallasnews.com/business/energy/20150115-texas-oil-boom-heading-for-bust-in-a-hurry.ece

Now concern is deepening that the U.S. oil industry is entering what could be a sustained downturn.

“It’s going to be devastating. For all practical purposes we lowered the barrier to entry so low that every Tom, Dick and Harry could go out and rent a rig,” said Fadel Gheit, a managing director with the investment firm Oppenheimer & Co. “The longer prices stay down, the more companies are throwing in the towel. We will see a lot more pain before we get any gain.”
...
At a speaking engagement in Dallas Tuesday night, T. Boone Pickens, the outspoken energy investor, repeated his prediction that once U.S. production slows, prices will rebound and be close to $100 a barrel in 12 to 18 months.

“I like to get out in front of it,” Pickens said. “We’ll see if I’m right.”

 

​

 

It is inexplicable that the market would bear more than $5 for a barrel of Budweiser.

 

It is inexplicable that the market would bear more than $5 for a barrel of Budweiser.

I guess it depends on wether you're talking about the american brand or the real thing.

 

I guess it depends on wether you're talking about the american brand or the real thing.

Wow. I just learned something!

 

I've always been amazed that I can drive just a couple miles from home and buy an explosive liquid for under $2 per gallon at retail. When I was in the business of trying to ship a liquid to customers, I couldn't come close to that and my product wasn't explosive.

 

Oil is definitely under-priced, even at its peak ($140): 80% of the oil goes into transportation, and 20% into petrochemical processing which generates 80% of the value. From a long-term perspective, we should think about the preservation of oil as a precious resource.

 

From a long-term perspective, we should think about the preservation of oil as a precious resource.

You go ahead and think that way. I'm going to continue to use it to improve the quality of my life.

 

That's pretty much my definition of life itself: Using surrounding resources for one's own benefit. When you stop doing that, you're dead.

 

Using surrounding resources for one's own benefit. When you stop doing that, you're dead.

Sounds adequate for animals.

An intelligent being probably should aim higher.

 

We do! There is a marked difference between surviving and surviving comfortably!

 

We do! There is a marked difference between surviving and surviving comfortably!

I'd rephrase that to "... a difference between surviving and actually enjoying life"

 

One of my favorite ways to spend my life!

 

An intelligent being probably should aim higher.

Please enlighten us how any living thing stays alive without drawing on surrounding resources. It's not optional, intelligent or otherwise!

 

Please enlighten us how any living thing stays alive without drawing on surrounding resources. It's not optional, intelligent or otherwise!

Just because you still have water coming out of the faucet doesn't mean you should let it run down the drain 24 hours a day.
My Perrier already costs $1850 a barrel.

 

"Please enlighten us how any living thing stays alive without drawing on surrounding resources. "

Sure.

The fact that you have plenty of a resource doesn't mean you should NOT think about its conservation over the long term.

The fact that you should think about the long term conservation of a particular resource doesn't mean you should stop its consumption now.

If any part of that isn't clear, please let me know.

 

Danny, you are so weird.

 

Meanwhile, 7 months later...

http://www.telegraph.co.uk/business...-oil-has-fought-saudi-arabia-to-a-standstill/

Not only does it seem our frackers are going to survive, but OPEC is losing the battle!

 

LOL,
"This is a cold douche for Opec."

Just a day or two ago here:

 

Not only does it seem our frackers are going to survive, but OPEC is losing the battle!

Yep and here in North Dakota we aren't too far behind them. The primary thing they have over us right now is their pipelines and transport infrastructure largely in place and able to run at high capacity. Once we get ours to that point we will be right behind them on dirt cheap oil production as well.

At the moment I have suspicions something is going on behind the scenes being I am hearing job ads running on the radio now for oil field related companies hiring people which I have not heard for most of the last year.