Uh oh - Fed says oil price drop is a net benefit...

[68Camaro]

Given that, you can count that the opposite will be true. The Miles Franklin crew think that the US oil shale based derivatives are in danger of bursting in 2015 if the price drop continues to stay below $80.

[Thogey]

I read that US shale based derivatives break even at $36 bbl and profit at $42. I'll try to find the article. I think it was on Bloomberg news.

Apparently more than a few big OPEC nations really get hurt below $100. This will be interesting.

Can you imagine US gubermint subsidies to big oil? Like farms? It could happen.

[Tourney64]

Government says its a benefit, then it won't be long and they will increase the tax on you.

[68Camaro]

I read that US shale based derivatives break even at $36 bbl and profit at $42. I'll try to find the article. I think it was on Bloomberg news.

Apparently more than a few big OPEC nations really get hurt below $100. This will be interesting.

Can you imagine US gubermint subsidies to big oil? Like farms? It could happen.

Varying estimates put it at between $50 and $80. Here's a map making estimates as a function of the site/size. The largest and most expensive sites have the highest break-even points.

http://www.businessinsider.com/citi-bre ... es-2014-11

[Treetop]

Exxon mobile yearly long range report seems to think Us shale oil can handle low prices.

several good links on the article....

http://wattsupwiththat.com/2014/12/10/u ... en-agenda/

[68Camaro]

Exxon mobile yearly long range report seems to think Us shale oil can handle low prices.

several good links on the article....

http://wattsupwiththat.com/2014/12/10/u ... en-agenda/

And would Exxon possibly blow smoke? Long range reports are fountains of optimism; if we could believe them we would all already be wealthy, with a flying car in the garage, time travel commonplace, and colonies on stars already in process due to faster than light travel.

Regardless, and I'm sure some oil shale will survive no matter what, financing plans based on $100 oil won't survive, so there will be less exploration and low yield spots will be passed by, so there will be less economic by-product. Bottom line is that cheap oil is good for some in the short term (including me), but it overall indicates that the global economy is weakening or else demand would be keeping prices higher.

[Treetop]

Perhaps. Looking at the big picture I am seeing some trends. Reading between the lines I expect the Us comes out on top of the current wave of energy wars. I also expect to see industry come back, but that is of course after a major currency reset, and at lower wages then people expect now.

We have had artificially supported demand for decades really, nothing new there. I dont think this is the main price driver atm though, a chess game is afoot. Past repoerts I saw from them were counter to what the general consensus was, but proved correct btw. These often seem to be more telling us what they are making happen rather then just what they project.