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glassman
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just when you think the economy might start growing decently in a couple more years....


Oil’s $5 Trillion Permian Boom Threatened by $70 Crude
By Joe Carroll & Edward Klump - Oct 25, 2013 10:53 AM CT

Bryan Sheffield, a third-generation oil wildcatter in Texas’s Permian Basin, knows what he’ll do if crude drops to $80 a barrel: shut down half his drilling rigs and go on a takeover hunt for weaker rivals.
Pickens Says Oil to `Hold' at $97 a Barrel in 2013
17:04

Oct. 24 (Bloomberg) -- Billionaire investor T. Boone Pickens talks about the U.S. oil and natural-gas industries, the lack of a national energy policy and the outlook for oil prices. Pickens, speaking with Trish Regan, Adam Johnson and Cory Johnson on Bloomberg Television's "Street Smart," also discusses Twitter Inc.'s growth and initial public offering. (Source: Bloomberg)

Sheffield is among producers who’ve together invested $150 billion in the Permian since 2010 seeking their piece of an oil trove estimated to be worth as much as $5 trillion. As the money pours in, risks are mounting of a bust as analysts including Marshall Adkins of Raymond James & Associates Inc. forecast crude is heading down to $70 a barrel next year, a price that would slow drilling in the most expensive U.S. shale formation.

While traditional wells have been drilled in the Permian since the 1920s, producers have become giddy over the potential of the region’s vast overlapping layers of oil-soaked shale rock. Pioneer Natural Resources Co. (PXD) estimated the remaining yield at the equivalent of 50 billion barrels, more than any field on Earth except Saudi Arabia’s Ghawar. The varied geology, though, makes it more costly to explore and develop.

“That’s the double-edged sword,” said Benjamin Shattuck, an analyst at Wood Mackenzie Ltd. in Houston. Multiple oil zones layered one atop another provide ample potential for riches, “but you also have to be a knowledgeable and good operator in order to drill economic wells out there.”

If oil drops another 18 percent to $80 a barrel, wells in some parts of the Permian that sprawls beneath Texas and New Mexico will become money-losers, said Tim Rezvan, an analyst at Sterne Agee & Leach Inc. in New York.


http://www.bloomberg.com/news/2013-10-24/oil-s-5-trillion-permian-boom-threatene d-by-70-crude.html

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Don't envy the happiness of those who live in a fool's paradise.

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CashCowMoo
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All ya need is a nice new war to break out and fix that problem.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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glassman
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we haven't paid for the last three wars... or four or five depending on how you count them...(include the war on drugs too)

US oil can't be sold unless oil is 80$ barrel? IF htese guys are on Government leases and they shut downt hewells, then they should lose the leases IMO...


tell me truthfully cashcow, after reading that article do you really believe that Capitalism is working?

i seem to recently recall a whole boatlaod of conservatives complaining because they wouldn't open up the arctic circle for drilling even tho it's even more expensive to drill up there... (and BTW the oil was just plain not there)

the economic slowdown we are currently in is in large part due to 3$ per gasoline and 3.50 per diesel fuel.... that sucked out a large chunk of personl discretionary spending....

if you want to see the economy pick up? get 2.25 gasoline and 2.50 diesel back on th epumps.. things will break out, but these guys are saying they'll just turn off the pumps if that happens? sheesh.

oh wait, these guys don't want Oabma to be success

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CashCowMoo
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Uh, yeah its pretty simple to know that the lower the cost of fuel the better for Americans it is across the board.

I am not saying we need war or high prices, lets not get carried away with what I post. Capitalism could be working the way it should if we did not have such power hungry assholes in office. We have a real sick crew in right now.

The difference between Obama and the rest is Obama promised alllll this change and transparency. The Obama sheep on this board still stand by their man. Hands down. He is the one, THE one. Just saw on the news tonight that NBC uncovered in the law that 45-60% they expected to be dropped and not keep their health insurance. They knew this and lied to the people about it and the sheep fell for it.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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glassman
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actaully cashcow? when Bush was was in? the "other side" was the exact same way...

nothing changes...


i'm thinking about getting new keyboard since i quit smoking, what do you think? [Big Grin]

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Don't envy the happiness of those who live in a fool's paradise.

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CashCowMoo
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Those hands look at little young and clean for you

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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glassman
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tue, and i'm not that messy either,

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Don't envy the happiness of those who live in a fool's paradise.

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CashCowMoo
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quote:
Originally posted by glassman:
tue, and i'm not that messy either,

That IS a pretty nasty keyboard. Who lives like that?
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glassman
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i was actaully watching the debates when Dubya told US all he wouldn't be nation building... but then h ebought tow nations to build...
granted we had to go into Afghnistan- i don't hold that one on him... most of ( about 60%) Obama's overspending is from Bush the wars AND that friggin prescription coverage bill the GOP pushed thru for him...

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Don't envy the happiness of those who live in a fool's paradise.

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CashCowMoo
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Yup, GOP set the stage. Once dems got power they just wanted revenge like little babies. Pretty sick what this country has come too. Its like hyper corruption.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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