So when do U.S oil companies go under and….

[Coronita]

…and get acquired by OPEC nations for the cheap?

Seems like that what happened with a lot of green tech companies that went under……

[The-Shoveler]

LOL that sounds like something an American company would do.

But I will put that down as a possible outcome.

[Coronita]

[quote=The-Shoveler]LOL that sounds like something an American company would do.

But I will put that down as a possible outcome.[/quote]

Well I’m just thinking…See Saudi Arabia says that they are profitable even if oil is $40/barrel… Some say they are still profitable at $25/barrel… There’s no way US shale companies can be profitable at that level..And a lot of these shale companies were on borrowed money and they will go under. Who’s going to pick up after this mess? Doesn’t seem like we have any real laws to prevent a company from OPEC nations or from China from acquiring such assets, especially if they are flush with cash…

It would be kind of ironic that you would have foreign companies buying U.S. shale companies to produce oil here in the U.S. (and associated pollution) for oil that is consumed overseas.. I guess it would be karma for us buying cheap products from China made in factories that pollute the environment over there….

[spdrun]

Good. If oil production, even in the US, benefits the Chinese or Middle East rather than good ‘ol Americans or Canadians, maybe there will be stronger political impetus to move to alternatives, rather than staying in the 20th Century.

Time to start building out EV infrastructure and the nuclear and renewable plants to support it!

This being said, there may be laws against foreign ownership of US oil reserves. If there weren’t, why didn’t the Saudis buy up massive quantities of US oil infrastructure in the 1980s — the last time oil price corrected hard?

[poorgradstudent]

Are you talking about the traditional big producers like Exxon, or the small shale oil boom companies that represent a fractured, fragmented market?

A lot of those small companies will eventually go bust or get bought out, probably by Domestic Big Oil companies or ones like BP or Shell.

Of course, I’ve been saying that there are too many microbreweries in San Diego for years, yet the number keeps going up. Sometime the craft beer market has to consolidate… right?

[moneymaker]

When an oil/gas well is no longer profitable they just shut it down would be my bet. It is kinda ironic that we put economic pressure on Russia so they produce more/cheaper oil which benefits us the US consumer.

[spdrun]

Benefits? Maybe it benefits wastes of oxygen who like to drive 60 miles each way in their commute short term. But what of the effects of global warming? What about instability caused by increased dependence on cheap Middle Eastern oil, since we’re using our military to save the bacon time and time again over there. What about the retardation of meaningful alternative energy research, and the adoption of nuclear power? For that matter, what about the destruction or mothballing of domestic oil production capability?

The French were smart, unlike us. Come the first oil crisis in the 1970s, they decided to embark on a large-scale program of building out nuclear and hydro power, as well as electrification of all major rail lines. They kicked their economy into the 21st century 30 years early, while we’re mired in the 20th century, partying with cheap fossil poison while the world burns.

BTW – we’re not pressuring Russia to produce cheap oil. We’re using cheap Saudi(*) oil to pressure I.S. and the Russians.

(*)- evil theocratic fanatics — I hope I’ll see the day that there’s a revolution in Riyadh and the Saudi royal family is forced to flee their former country at gunpoint, like the Shah in 1979.

[livinincali]

[quote=poorgradstudent]Are you talking about the traditional big producers like Exxon, or the small shale oil boom companies that represent a fractured, fragmented market?

A lot of those small companies will eventually go bust or get bought out, probably by Domestic Big Oil companies or ones like BP or Shell.

Of course, I’ve been saying that there are too many microbreweries in San Diego for years, yet the number keeps going up. Sometime the craft beer market has to consolidate… right?[/quote]

The 300-500 billion that was borrowed to build out the shale oil bubble will pop likely next year. But it will be contained just like subprime was contained I’m sure. Just look at the Junk Bond market where most of this stuff trades (JNK).

The craft beer market in SanDiego will pop too. The big guys won’t fail but the micros that got in over their head will. I’m sure you’ll be able to find 15-30 barrel production equipment on the cheap in a couple of years.

[Coronita]

Meanwhile I wonder how EV cars are going to do..

[moneymaker]

Oil is at or below $60 a barrel, time to go fill up the RV.

[spdrun]

Meanwhile I wonder how EV cars are going to do..

Might be a repeat of the 90s. Sheep will forget about high oil prices very quickly and go back to buying guzzling barges and stupid useless vehicles. Until the next price shock hits, then they’ll squeal like pigs and beg our military to bail us out.

Meanwhile, the French, with their 90% clean (nuke/hydro) power grid and electric trains will laugh in our faces across the pond 🙂

[moneymaker]

spdrun I’m with you on nuclear as a good form of energy production, probably not a good idea in places that are known for earthquakes though, i.e. Japan and California. I believe the majority of Uranium comes from outside France, Kazakhstan, Canada and Australia are the big 3 there. France is 18th producing only 7 tonnes a year.

[livinincali]

[quote=moneymaker]spdrun I’m with you on nuclear as a good form of energy production.[/quote]

Who said you need uranium 235 to produce nuclear power. There’s tons Thorium 232 to be exploited in the US. Of course it’s difficult to build nuclear weapons from a Thorium nuclear fuel cycle.

[quote=moneymaker]
probably not a good idea in places that are known for earthquakes though, i.e. Japan and California.
[/quote]

As long as it’s NIMBY, right? I would agree that CA might be better off with Solar Thermal in the Mohave desert than Uranium PWRs on the coast. Of course we might screw up some some desert snake’s habitat if we do that.

[sd_matt]

I’m with you guys on the molten salt idea. At the very least we should build the prototype to find out if there really is a materials issue. Too many upsides.

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