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Smith writes: "With one quick drop in the price of oil, the shale oil boom is officially bust."

Sixty-one oil drilling operations closed up in just one week, with another 400 to follow by spring. (photo: Inthinc.com)
Sixty-one oil drilling operations closed up in just one week, with another 400 to follow by spring. (photo: Inthinc.com)


Turns Out the US Oil Boom Was Just a Fairy Tale

By Heather Smith, Grist

16 January 15

 

ith one quick drop in the price of oil, the shale oil boom is officially bust. In less than a week, 61 oil rigs across the United States closed up shop, according to the most recent rig count from Baker Hughes. The U.S. has 1,750 oil rigs still hunting for new oil wells, but that number is expected to fall by another 400 rigs by the time spring rolls around.

The whole episode is a wake-up call about just how much of a fairy tale North America�s oil boom really was. It was a fairy tale with real drills, sure � and since it was exempt from the Clean Air and Clean Water acts, it will continue to have real consequences for the people living near it. But when it costs Saudi Arabia $10 to get a barrel of oil and it costs shale oil operations around $65 to make that same barrel, it should have been obvious that America was only a titan of oil production because another country was letting us be.

The U.S. got the excitement of overtaking Saudi Arabia and becoming the biggest producer of oil in the world for a few months this summer. Then Saudi Arabia did what it always had the power to do and raised its oil output so that prices fell.

�Those who are producing the most expensive oil � the rationale and the rules of the market say that they should be the first to pull or reduce their production,� Suhail Al Mazrouei, oil minister for the United Arab Emirates, told reporters recently, sounding more than a little like an Econ 101 professor. �If the price is right for them to produce, then fine, let them produce.�

That price � which was $110 per barrel this summer, and $80 three months ago � is now hovering at $46. Goldman Sachs estimates that it will drop to $40 in a few months, since it will take a while for production to slow down and adjust to the new pricing. the United States has cut 10 percent of its oil exploration, and Canada has cut back 25 percent

Since late November, the United States has cut 10 percent of its oil exploration, and Canada has cut back 25 percent. If this continues, expect the oil boom towns of Alberta, Texas, North Dakota, and Colorado to start looking more like ghost towns.

When are prices likely to rise again? Goldman Sachs estimates they�ll begin rebounding at the end of 2015. Others warn that the situation could be more like the oil price drop of 1986, which lasted about five years.

All of which means that TransCanada may well find itself delighted that protesters stopped it from building a big, expensive pipeline to get now-unprofitable tar-sands oil to market. I wouldn�t count on that one, though.

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-82 # indian weaver 2013-10-12 08:20
OBAMA IS THE ENEMY OF WE THE PEOPLE. AND HE IS THE ENEMY OF ALL PEOPLES AND PEACE WORLDWIDE.
 
 
-44 # JohnBoanerges 2013-10-12 10:07
I canceled the 1 negative vote but I cannot understand a single person disagreeing with the statement you made (other than using all caps to write it).
John Boanerges pain in the ass Redman
 
 
+8 # Texas Aggie 2013-10-12 13:09
Only a teabagger would have problems with the person who brought Obamacare into the world. Now do you understand why we disagree with that statement?
 
 
+31 # Kathymoi 2013-10-12 16:36
I would be more enthusiastic about Affordable Care if it were for all Americans and not just those who can afford it, and if it were single payer instead of distributing the profits around to the private insurance industry. It still leaves some people out of healthcare.
 
 
+25 # Reductio Ad Absurdum 2013-10-12 20:35
 
 
0 # Rita Walpole Ague 2013-10-15 09:20
Yes, dear Kathmoi, and still left we are, here in the U.S. of (greed and power) A. (ddiction), with the egregious stance of continuing to be the only 'advanced' nation on earth that does not provide healthcare for all as a human(e) right.

This droning, people and Mother Earth destroying country of ours is exceptional in only one way - our need to maintain greed and total power over all. With both the first prime minister in the U.K., Sir Robert Walpole, and a Dem. Pres., Andrew Jackson, hanging in both my family trees, I, today sadly proclaim:

ASHAMED TO BE AN AMERCAN !!!
 
 
+19 # Eldon J. Bloedorn 2013-10-12 21:16
My God, Americans are so uneducated to watch their fellow citizens needlessly die as they formally got kicked off insurance rolls for executing a madical claim. Or, had a pre-existing condition, or not able to obtain insurance. We blessed ourselves with "this is the greatest nation in the world" after we perfected and used the atomic bomb on Japan. Christ, this country is stupid. Can we also say that since we formally watched our fellow man die because they could not obtain or afford horrible insurance coverage that that also "made us the greatest couintry in the worlsd?"
 
 
+6 # John Escher 2013-10-13 10:25
Quoting Texas Aggie:
Only a teabagger would have problems with the person who brought Obamacare into the world. Now do you understand why we disagree with that statement?


I thought Mitt Romney brought Obamacare into the world.
 
 
+9 # JohnBoanerges 2013-10-12 10:10
Having said that, however, all control freaks worldwide and the sheeple that don't non-violently oppose them are the enemy of peoples and peace. As Walt Kelly said with Pogo as his mouthpiece said .... .
 
 
+7 # Nominae 2013-10-12 15:47
Quoting JohnBoanerges:
Having said that, however, all control freaks worldwide and the sheeple that don't non-violently oppose them are the enemy of peoples and peace. As Walt Kelly said with Pogo as his mouthpiece said .... .


I see ..... so anyone who is not with you is against you ..... seems I've heard that before.
 
 
+71 # Phlippinout 2013-10-12 10:29
I think that gives him way too much credit, perhaps you meant to say The US government instead of Obama because this crap has been around much longer than he has! I know it feels good to blame him but he is not the driving force, it is the empire that turns good intentions into evil forces. Greed, power military complex, lies ....what a formula on how to create enemies.
 
 
+38 # Glen 2013-10-12 11:06
Obama OK'd the attack on countries as soon as he got into office. He has put out orders for assassinations and the use of drones and rockets to pick off even decent citizens in various countries. He also promoted funding of drones and the increase in numbers.

Therefore, Obama is carrying on with an agenda set long ago. He was going to do it regardless and began it all his first day in office. He is definitely liable, but yes, "this crap has been around much longer than he has".
 
 
+2 # hutchr 2013-10-14 15:28
I am really amazed and shocked about all of the negative points given to this statement. I have negated one but just to think that there are so many sheep out there believing in this mean spirited president who is going against almost everything that he promised as a candidate. We are not a more open society. We do not have less war. I like what he has done for healthcare though it didn't go far enough, but the rest, highlighted by Syria and Snowden is what is so depressing.
 
 
+20 # Citizen Mike 2013-10-12 09:52
Obama understands the need to keep stirring up terrorism to maintain the constant state of warfare that our military contractor economy requires. And to continue to justify the growth of our high-security surveillance state, which is a great profit center for our most important growth industries. Helps him to consolidate for himself powers of the Imperial Presidency built by Bush.
 
 
+51 # REDPILLED 2013-10-12 10:33
unfortunately, the Corporate/Milit arist cabal wants more terrorism so they can keep making profits and in power. The Empire always needs "enemies" to justify its violence.
 
 
+3 # CTPatriot 2013-10-14 03:43
You mean we HAVEN'T always been at war with Eastasia??? :-(
 
 
+2 # Billy Bob 2013-10-12 10:47
Oh yeah?!?

Well, I bet she doesn't know how to get the most out of her iPhone !

Take THAT, 3rd world!
 
 
+14 # Nominae 2013-10-12 16:26
Quoting Billy Bob:
......Well, I bet she doesn't know how to get the most out of her iPhone ! ...Take THAT, 3rd world!


I appreciate the fact that you are joking, of course, and I gotta say I'm not certain that *I'd* take that bet ! A 16-yr-old as brilliant as this one - who has now been living in England for two years ago, not able to "spank" her own i-phone ? I dunno ! ;-))

This young lady is astonishing. She addressed the United Nations a short while back.

Damn ! When I was 16-yrs.-old, I had to struggle to get up and address my High School speech class, and they all spoke my native language. I am likewise certain that I would have "choked" in addressing POTUS at that age

Malala is still years away from being in possession of an adult judgement center (prefrontal cortex engaged) which arrives, for the human female as late as age 22, and for the male, as late as age 24. This is the brain center for higher reasoning.

So given what this incredible person is accomplishing so far - I would just advise the world - Watch Out ! ;-))

I was right behind Jon Stewart when he interviewed Malala on his show and commented " .... I know your Dad is here with you, back in the Green Room ..... but can I adopt you ?"

My only concern for Malala is her choice as a role model, of the beautiful and highly intelligent Benazir Bhutto, former Prime Minister of Pakistan, whose star burned brightly until she herself was assassinated.
 
 
+3 # Billy Bob 2013-10-13 16:08
Good comments.
 
 
+1 # Nominae 2013-10-13 21:33
Quoting Billy Bob:
Good comments.


Thanks, man.
 
 
+1 # hutchr 2013-10-14 15:36
We keep ourselves and our children infantisized. (If that is a word) The British navy in the 17 and 1800's had ship captains in their teens and admirals in their early 20's. Some US marines who lied about their ages were 15 and 16 when the killed and got killed in the Pacific during WW2. At 16 most of the world is considered pretty matured. They work, marry, do responsible things at that age. they don't wait until after college to start being "grownups". Neither do the American poor. It is mostly a product of Middle Class American ideas that keep babies babies and children children for so long.
 
 
+32 # wdg 2013-10-12 10:55
The white house is an agency to a) maintain imperial dominance through its political mechanisms and b) placate the population. Whoever is in the White House is irrelevant. But the vector is getting more deadly.
 
 
+40 # fredboy 2013-10-12 10:58
"Drones Fueling Terrorism"?

Of course. That's their purpose. To keep conflict going. That's what sells more weapons and weapons systems.
 
 
-3 # The Voice of Reason 2013-10-13 12:36
Actually the fact that people are breathing fuels these evil minded and hateful terrorists. Everything fuels their hatred. They have no valid agenda, only murder and mayhem, which is the severing of limbs from the body. These terrorists are raised in a culture of violence and are oppressed by religious leaders who are in fact Satan worshipers. This is not going to end well at all.
 
 
-1 # Billy Bob 2013-10-13 16:11
I'm confused. Who are you talking about? Everything you just said could be applied to people who like the use of drones.

Seriously, "Satan worshippers"?

I know hyperbole is fun, but just because you're not a Muslim doesn't give you the right to say 1 billion people are "Satan worshippers".

Lying and bearing false witness are both against the Ten Commandments.
 
 
0 # The Voice of Reason 2013-10-26 21:54
You should try reading what I wrote, which is that the terrorists and the religious leaders are the Satan worshipers. And there is no hyperbole involved. When the Promised Christ appears (appeared), these Muslim leaders are the ones who will put Him to death. Can you think of a better definition for them? Really Billy Bob, you should know better. You are the one saying all Muslims are terrorists.
 
 
+20 # btraven 2013-10-12 11:29
I don't know if Obama is the "enemy of the people" but he certainly is the enemy of the Constitution of the United States. And he has no excuses since he is a "constitutional " lawyer. He has misled the citizens and silenced the loyal opposition by throwing them a few legislative bones and a lot of high flown rhetoric which bears no relation to his actual performance as president.
 
 
+7 # grandma lynn 2013-10-12 20:37
I want to do more than bump up your + number. You so hit the nail on the head. When he comes on NPR now as a voice reported upon, I get all hollow inside, knowing I'll hear some great pronouncement, but it has no bearing on what needs to be done and on what he could do. I say aloud, "Blah, blah, blah."
 
 
+21 # Canadaharry 2013-10-12 11:50
He is only the figurehead of course. So sad that the Republicans are no better... actually have proven themselves even worse while in office. And look at what they are doing today (shutdown ploy). Whe really, really must do what most of us know deep down MUST be done and that is RE-ELECT no sitting member. Fresh start. (of course being nonAmerican I cannot lead by example in this, alas I would.)
 
 
+33 # Saberoff 2013-10-12 12:14
Good for this young lady! How many of us (Mericans) would have the nerve, sitting face to face?
 
 
+33 # Texas Aggie 2013-10-12 13:12
If she can stand up to the Taliban, she has the guts to stand up to the US.
 
 
+9 # grandma lynn 2013-10-12 20:40
I hope that Obama and Michelle O. could not help but talk about her at the end of their day, and if they didn't try to explain away her truth-telling (which seems akin to whistleblowing) , maybe they listened to her wisdom. I wish.
 
 
+13 # tigerlille 2013-10-12 16:41
Go Malala! That's my girl! She's isn't a tool for anyone.
 
 
+6 # Kathymoi 2013-10-12 16:45
The United States could change its purpose in international relations. It could support education for all citizens in all the countries where it now has a military presence. As the impact of US policy switched from murderous to supportive, the felt need for a strong military presence would subside. Of course, that would also depend on turning our national focus on making the US self reliant for energy, which would mean renewable energy such as solar, wind, bio mass, biofuel---thing s we have in abundance in our country. We could end the motivation for terrorism, reduce world population growth (which is tied to education), reduce carbon emissions, and promote development of economic opportunity and jobs in the US all at the same time. This kind of change will not be supported, however, by any established political party in the US. We need to abandon the political parties and vote for good people who are independent of the parties.
 
 
0 # grandma lynn 2013-10-12 20:43
All good - but our heart of gov't, D.C., would still be populated by 24/7 opportunists who have their head start on the good, new, unparty-aligned legislators. Maybe it is time to move the heart of government to a fresh site, like Kansas. Whoops, we've made the interior less habitable with our rush to climate change and those super-cell storms that wipe out constructions.
 
 
+3 # langdonsilver 2013-10-12 18:17
Seems that "Indian Weaver" was able to bait everyone into the pros and cons of Obama. How about a bit of praise for the fantastic gal from India whose life is still threatened by the bastards who shot her in the head. Such a smart gal with a mission to educate more likes herself. Hope she doe not end up a martyr.
 
 
+1 # Nominae 2013-10-13 00:46
Quoting langdonsilver:
Seems that "Indian Weaver" was able to bait everyone into the pros and cons of Obama. How about a bit of praise for the fantastic gal from India whose life is still threatened by the bastards who shot her in the head. Such a smart gal with a mission to educate more likes herself. Hope she doe not end up a martyr.


Great post, and I'm certain you meant to note that Malala is from Pakistan, rather than India. She speaks Urdu as a native.
 
 
+11 # ladymidath 2013-10-12 18:37
Malala is a brave young woman. It is a pity that Obama won't listen to her though. She is right about the drones causing resentment and fury. Obama does not seem to understand that when you kill and main entire towns and villages, they tend to get angry with you.
Malala is right about education, it is the key to freeing people but Obama will continue to use his drones while the rest of the world watches in growing disgust.
 
 
0 # Dennyc 2013-10-12 18:59
Let's run her for president.
 
 
0 # grandma lynn 2013-10-12 20:45
Break the rules, elect a non-American because she has the American ideal guiding her. Her instincts are right. Birth-land be damned. We're all on this one planet together. Think locally, act globally....
 
 
0 # gilletlb 2013-10-13 06:47
Quoting Dennyc:
Let's run her for president.


Or Elizabeth Warren's secretary of State
 
 
+8 # ishmael 2013-10-12 21:17
Would be interesting to know what Mr Obama's reply to Miss Yousafzai was, about the drones.
 
 
0 # John Escher 2013-10-13 10:27
Quoting ishmael:
Would be interesting to know what Mr Obama's reply to Miss Yousafzai was, about the drones.


Exactly. And this is the important thing in the article. Once again, the multitude of posts is off-track.
 
 
-2 # Nominae 2013-10-13 21:53
Quoting John Escher:
Quoting ishmael:
Would be interesting to know what Mr Obama's reply to Miss Yousafzai was, about the drones.


Exactly. And this is the important thing in the article. Once again, the multitude of posts is off-track.


I have seen you advance this canard in the past. This time I have opted against letting it pass unanswered.

First, the commenters have no cause to comment on what was *NOT* in the article, (Obama's response) because the absence of info in the article makes comment on it, *by definition* "off-track".

This is true, even though I know that many of us were also curious about that same question.

Second, the fact that the comment string is *not* custom tailored to *your* specific line of thought is NOT evidence that said posts are all "off-track", a position that you have often maintained in the past.

I hate to be the one to break this to you, but the comment section is really *not* all about you. Sorry if that sounds rude.
 
 
0 # John Escher 2013-10-15 10:58
Quoting NOMINAE:
Quoting John Escher:
Quoting ishmael:
Would be interesting to know what Mr Obama's reply to Miss Yousafzai was, about the drones.


Exactly. And this is the important thing in the article. Once again, the multitude of posts is off-track.


I have seen you advance this canard in the past. This time I have opted against letting it pass unanswered.

First, the commenters have no cause to comment on what was *NOT* in the article, (Obama's response) because the absence of info in the article makes comment on it, *by definition* "off-track".

This is true, even though I know that many of us were also curious about that same question.

Second, the fact that the comment string is *not* custom tailored to *your* specific line of thought is NOT evidence that said posts are all "off-track", a position that you have often maintained in the past.

I hate to be the one to break this to you, but the comment section is really *not* all about you. Sorry if that sounds rude.


Humbug. You're absolutely right that I'm an egomaniac if that makes you feel better. But you should continue to feel disengaged for pouncing on something so small. Of course people can discuss anything they want, any time. But when the main subject is more important, they should stick with it, and if they don't they are SCHMUCKS. Or if I don't make myself clear, then "You are trying to be Nero while Rome burns."
 
 
-1 # Narwhalin 2013-10-13 08:45
Quoting Texas Aggie:
Only a teabagger would have problems with the person who brought Obamacare into the world. Now do you understand why we disagree with that statement?


So, by that logic, Miss Yousafzai is a "teabagger", I guess...
 
 
+1 # Khidr 2013-10-14 17:29
She is a brave old soul. She has acute sense of wisdom. I would like to hear Pres. Obama's answer to her statement drones fuel more violence and keeps the Defence Industry humming for more profits paid by us The US Taxpayers.
 
 
0 # John Escher 2013-10-15 08:59
Quoting fredboy:
"Drones Fueling Terrorism"?

Of course. That's their purpose. To keep conflict going. That's what sells more weapons and weapons systems.


I don't accept all the glib cynicism in this although it approaches Orwellian intelligence. George W. Bush and Barack H. Obama simply are and were uninformed men and very stupid on the drone point brought up by Malala.

If either Bush or Obama were students of early World War II, they would know that drones did more than anything to galvanize the British people from Winston Churchill and Mrs. Miniver on down.

Drones are horror movie stuff interspersing silence and characteristic sound with a deadly-- now? when? now?-- boom.

As such, they are fodder for paranoia, but in this as in certain other things, if you aren't paranoid you don't know what's going on.

If Obama hadn't spent so much time studying law while Bush studied the torture of horseflies, either of these guys might have taken a psychology course through which he could have begun to approach the emotional maturity of Malala.

Yes, drones create new terrorists. That may be obvious to educated persons but not to these last two presidents, and neither has proved an enlightened and decisive leader on Malala's huge point despite whatever else redeems them.

Well, let me revise that...to whatever partially redeems Barack Obama. But his redeeming traits don't fully compensate for his decisions on war, torture and drones.
 

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