All eyes are on falling oil prices and related markets—mainly, the price of gas at the pump. However, industry insiders are concerned with how, why and the near future of the oil and gas market. Apparently, the price of oil by the barrel and gas by the gallon are the only two things falling. The economy is up, the stock market is up, and the price of oil-based chemicals is holding its own.
OPEC can afford to lower its prices because they don’t have the high costs of fracking. Consequently, OPEC will keep producing as will the US and consumers will enjoy the benefits, at least for a little while until the playing field levels. The complicated confluence of the value of the American dollar, the price of drilling vs. fracking, and the world demand for oil-based energy are the necessary elements for everything from sensationalizing the daily news to plots for political action movies.
Read on and see what the alleged pundits have to say.
Falling Oil Prices Doesn’t Bother Opec—Why?
Trish Regan, anchor and editor-at-large for Bloomberg TV answered this question in a special report for USA Today. After explaining the high cost of harvesting US oil through fracking and the relatively low cost of securing Mideast oil, Regan asserts that the cost of drilling difference is the primary reason OPEC will not budge on production. Read the full story and see if you agree.
Dollar Reaches 7-Year High as Energy Stocks, Oil Fall
A Bloomberg article by Joseph Ciolli and Stephen Kirkland claims that the strength of the US dollar against the yen despite falling oil prices is proof positive that assertions of a strong US economy are justified.
U.S. Oil Stockpiles Rise as Saudi Prices Fall
Heesu Lee addresses oil futures, Saudi prices, and oil stockpiles in a comprehensive Bloomberg article explaining the state of the seemingly volatile market.
Halliburton CEO Expects Shale to Reverse Falling Oil Prices
According to David Wethe in a recent Business Week article, Halliburton CEO David Lesar is joining other oil executives who claim to not be concerned about falling oil prices that they expect to climb next year. As the world’s biggest supplier of fracking services, Halliburton has perhaps the best perspective on what’s driving the U.S. shale boom.
The article goes on to say that Lesar believes the country needs only three elements to make shale drilling a worthwhile pursuit: good rock soaked in oil and natural gas, ample infrastructure such as pipelines to carry the petroleum to market and a profitable price.