Low oil prices

We just sold some oil stock, took a loss. Will buy again in January if the stock is priced lower than what we sold for

I have always believed that the stock market is for long term, and timing the market is hard to do, but this time, I think I could actually make a few bucks buying low and holding for awhile. I believe it will go back up all in due time, but selling at a loss is good for the tax position.

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The problem with cheap oil is that we still need alternatives to gasoline, with cheap oil its not profitable to do R&D on: (take your pick) fuel cell, batteries, hydrogen, etc).
The U.S. (and the world) needs a cheap cleaner fuel than gasoline and unless gas is around $4.00 a gallon or more, research into alternatives grinds to a halt.

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Just going to post this here:

OPEC admits to manipulating oil prices in effort to crash US production

That is nothing new I posted that days ago. That is what they are doing making sure the Bakkan (sp) oil fields are closed down and this is also a good way to stop that Pipeline form Canada. I said that in other posts.

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Great source.

It does not even make sense. Stop pumping shale oil, if prices drop. Start pumping shale oil again later, when prices come back up.

Saudi Arabia is probably hurting themselves more than anybody.

Apparently they don't realize that they are giving their oil away also.

The Saudis are doing ok. They're making plenty at $55 oil.

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As long as Saudi get nine dollars they are fine. As in it is not being sold at a loss. Ak pegged the state budget at 70 to 100 a barrel. Due to oil paying the bills for the state and we got into the habit of being bought with trinkets for our votes we are going to just.....Really alaska made it just fine when oil was 20 a barrel but but we pulled out that credit card when oil rocked to 70 a barrel forget about what wasting went one at 140 a barrel. There is no state sale tax but Kenai bough has a sales tax and as the price at the pump went up so did the amount of sales taxes....some of us warned them and suggested that there be a cap on sales tax pegged to the price. The local gov got greedy. It's going to be fun. Remind self to sent copies of Dave Ramsey to those elected.

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This is really too dumb to respond to, but okay

It will hurt this area bad, the oilfield is the biggest employer in the area. When the yards start filling with stacked out rigs, things will go down hill from there.

Allen: Ok was full of drilling rigs and rig builders during the last boom. When that one busted there were rig builders bankrupt all over and rigs laying down all over Ok from Tulsa on West. One rig builder that I remembered from my own days in the oil patch, back in the 50's, closed its doors.

I seen Woodward, OK almost blow away after that one, it took ten years before it started picking up and looking busy again.

A lot of the rigs from the 80's boom went for scrap or were exported.

It's not just the oil fields. This is already affecting companies/suppliers way down the chain from the oil fields. Stupid OPEC.

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I don't know that I'd call OPEC stupid. We're just fighting an economic war with them that we can't win.

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Well, I meant stupid as in bothersome, not as in their having a pretty good plan to starve out their competition.

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"Let not him who is houseless pull down the house of another; but let him labor diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built."

The problem with all this is that the oil boom has played a big part in keeping our economy propped-up the past few years. In fact it can be considered an oil bubble. It employs a lot of people at good salaries, and operating oil exploration companies typically fund their activities with a lot of debt load.

My concern is what a bursting oil bubble might do to the economy. Our economy is still fragile right now and can't take too big of a hit without having a huge impact.

And the oil sector isn't the only problem area either. I've also been concerned about the stock bubble, which is entirely artificial. If investors lose confidence that the Fed knows what it's doing that bubble could burst also. A stock market bust could also be triggered by an oil business crash.

I think this oil war is worse news than a lot of people realize.

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It might be bad for the economy overall, but I am enjoying filling up for less than $30. And if diesel keeps creeping down we might get some relief on retail prices because of cheaper transportation. So good for some, bad for others, like most things.

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Look at it this way, if the oil bubble burst is really bad then Obama's legacy will take a hit for a double-dip recession. That should make conservatives happy.

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How much of the lower oil prices really have something to do with Russian aggression and sword rattling? It is hurting Russia more than anyone else.

While this oil war has a huge impact on Russia, they aren't really a player. Russia is an exporter.

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At the same time that the oil boom has propped up the economy high energy prices have acted as a drag on it. Witness the effect the propane crisis had on the economy last year. With more money left in their pockets after filling the gas tank consumers will spend on other things. Retail, restaurants, car sales and other consumer spending will drive a broader recovery as long as prices stabilize at levels lower than they have been in recent years.

And other than oil & gas, what does Russia depend on for revenue? The ruble is worth half the value of 2 years ago, their economy can't take this punishment without some real problems. If Putin's popularity takes a steep slide for economic reasons, look for him to try war as a national unity tactic.

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