Oil

Curious Cdn

Hall of Fame Member
Feb 22, 2015
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In a way, yes.

What's your favourite whine again?

Ah yes ...

Saskatchewan has been a basket case for most of its run in Confederation and certainly earned the "parasite" badge until just a few years back. Alberta did too, but you have to go back about four decades.
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
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Cuz that's what the consumer was prepared to pay?

Cuz that was the trading price for it in a world wide commodities market. It had zip to do with consumers, Canada, the availability of the stuff, etc. but lots to do with some slimy OPEC members who should all be nuked into goo.
 

petros

The Central Scrutinizer
Nov 21, 2008
108,906
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Low Earth Orbit
What's your favourite whine again?

Ah yes ...

Saskatchewan has been a basket case for most of its run in Confederation and certainly earned the "parasite" badge until just a few years back. Alberta did too, but you have to go back about four decades.
Are you going to be a goof and blow off the big picture or do you want to learn something for once?
 

Nick Danger

Council Member
Jul 21, 2013
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Penticton, BC
It's simple economics isn't it? Supply and demand? With new supplies coming online recently, particularly shale oil development in the US and to a lesser degree the steadily increasing output in the oilsands, demand for offshore oil in the US, the world's largest consumer, has dropped considerably. Add to that the economic downturn in Europe and some developing countries, China especially, the world's second biggest consumer, and you have a whole bunch of producers fighting over a shrinking market. Oversupply = price drop. Economics 101.
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
37,070
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Are you going to be a goof and blow off the big picture or do you want to learn something for once?

Well, Petros, you probably know a lot more about Petro but I assure you, I know a hell of a lot about Manufacturing. I'll listen to you... You listen to me.
 

petros

The Central Scrutinizer
Nov 21, 2008
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Low Earth Orbit
It's simple economics isn't it? Supply and demand? With new supplies coming online recently, particularly shale oil development in the US and to a lesser degree the steadily increasing output in the oilsands, demand for offshore oil in the US, the world's largest consumer, has dropped considerably. Add to that the economic downturn in Europe and some developing countries, China in particular, and you have a whole bunch of producers fighting over a shrinking market.
That would drive it down. Not up.

Well, Petros, you probably know a lot more about Petro but I assure you, I know a hell of a lot about Manufacturing. I'll listen to you... You listen to me.

That's great, maybe I know about more about markets and geopolitics too.

Would you like to enjoy a better perspective?
 

Nick Danger

Council Member
Jul 21, 2013
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That would drive it down. Not up.

Well yeah, but the demand was there before the downturn. The global economy was hot, and supplies were less abundant. Again, the role that China played in the upswing since the very early 2000's was huge with their demand alone doubling in periods as short as three years.
 

Nick Danger

Council Member
Jul 21, 2013
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Penticton, BC
Not much longer than a dozen or so years ago the buzzwords were "oil crisis" and "peak oil". OPEC reserves were at a low and the extent of tight oil reserves in North America were relatively unknown.
 

petros

The Central Scrutinizer
Nov 21, 2008
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Low Earth Orbit
Not much longer than a dozen or so years ago the buzzwords were "oil crisis" and "peak oil". OPEC reserves were at a low and the extent of tight oil reserves in North America were relatively unknown.

If OPEC was short, how are they now flooding the market?

Shale kerogen content has been known for several decades prior.