re: Guys...what are we going to do about Russia?

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You mean like ethanol? Or electric cars? Or Solar? All incredible FAILS

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Ok I will take a shot, follow if you can. In order for US production to cause a downward trend in the price of crude a production increase in the millions of BPD would have to be obtained. Why would any rational business spend billions of dollars to drive down the price of their product? They also run the risk of having the bottom dropped out from under them at any point by a foreign consortium such as opec.

Second an increase of even 5 million BPD (which would take decades to achieve) would be absorbed by other exporting countries to maintain prices. I would imagine the other exporting countries would be willing to absorb a 10 million BPD reduction to maintain current prices. Remember some countries have millions of BPD capacity sitting idle already.

We have the one of the highest cost of production of crude in the world in the US. The reason production has ramped up in the US is stable high prices. Fracking is nothing new, the technology is decades old, it is just expensive and not worth it at 35$ a barrel. US exploration would cease to exist at low oil prices and production would plummet thereafter.


The only thing that will dramatically lower the price of crude is its obsolescence. Now deciding what technology will be able to do it is any ones guess and billions are being spent to find the answer. Thinking that a pipeline or oil lease being opened will dramatically effect the price of crude is a fools notion expounded on by political hacks and dimwitted journalist.