Minneapolis StarTribune Daily Business section today ran a story saying North Dakota oil is now being sold at $ 27 bbl. Nobody is making a profit. SA and OPEC run just about anyone out of business and destroy jobs, investments and families. Why do we still buy oil from those folks?
The Saudi's may have taken their position one step too far. It may have caused commodity disinflation world wide.
Some offshore oil drillers will file for protection and some will come back leaner and be able to survive at a much lower cost. On shore drillers will learn to operate at a much lower cost through much improved technology, drastically lower costs and improved efficiency.
As other energy sources grow Brent crude may never go north of $ 50 bbl again. Even if the Saudi's and OPEC cut 5 million bbl per day other producers could make up the difference as prices move up. US, Russia, & Canada. The Saudi, OPEC and Russian mentality to protect so called market share is wide spread and probably can not be stopped. Oil could be below $ 30 bbl in 6 months with gas below$ 1.50 gal.
North America probably should create their own pricing sphere to insure a constant supply at a reasonable price.
Hope I'm wrong on this.
Sold at a big loss to avoid more.
There should be a disclosure below that states one is on the side.