A Look At Who Loses As Oil Prices Keep Plunging

[pampango]

The rapid plunge in oil and gasoline prices means huge savings for American consumers, but the steep downward swing may ultimately prove dangerously disruptive to energy-producing countries and companies.

For American consumers, who used 135.4 billion gallons of gasoline last year, that’s a big savings — nearly $34 billion on an annualized basis. But for companies and countries that depend on oil prices for their income, it’s a trend that makes them nervous.

OPEC’s biggest producer and exporter, Saudi Arabia, doesn’t appear keen to cut production, in part because history has shown that most other OPEC members, who depend on oil to fund their governments, won’t reduce production even after they’ve agreed to.

“For those kinds of countries this is a huge shock, and they’re desperate … but Saudi Arabia has made it pretty clear it doesn’t want to cut back to give market share to Iraq and Iran,” said Daniel Yergin, a noted oil historian. “If prices fall further, you’re going to see panic.”

http://www.nationalmemo.com/look-loses-oil-prices-keep-plunging/

The article mentions many countries and companies - all of them oil-exporting countries or big oil companies that we all know - who will have major problems if the decline in oil prices goes much further and lasts much longer. It does not get into the damage done to renewable energy sources if carbon fuels continue to decline in price.

[ChisolmTrailDem]

1. From what I'm seeing at my local gas stations is that the plunge turned into a bounce that

bounced right off of election day. Down, down, down until Nov 4 and a day later it started back up.

I haven't looked at the national average lately so this may only be a local observance.

[Warpy]

2. I can't really call it much of a plunge

but it's gone from $3.39 here at the end of the summer to $2.49 last week. I have a feeling that's how low it will go since crude oil prices aren't still dropping. It will still change day by day as the spot market prices change because of the formula of contract oil to spot market oil. I was lucky, my car got thirsty on a $2.49 day.

[lancer78]

13. 30% is huge n/t

[bigwillq]

3. Prices are inching back up in CT.

Even during the "plunge" I never paid less than $3. Lowest I think I paid was $3.17/gal for regular.

[ChisolmTrailDem]

4. We got down to $2.59 (NTX) and now it's back up 10¢+. nt

[sharp_stick]

5. Where are you?

we're at $2.91/gal in Middletown right now.

[bigwillq]

6. Near New Haven

[sharp_stick]

8. It's always more down there.

Kind of like the stations on the Merritt, goes up 10 or 15 cents each time you get nearer to NYC.

[jeff47]

7. Here's a more national view.

http://www.gasbuddy.com/gb_gastemperaturemap.aspx

[TexasProgresive]

9. Looking at my local TV station

10/30/14 Texas average dropped to $2.81.
11/06/14 Texas average dropped to $2.75.
Average today in Bryan/College Station today-$2.57.

[global1]

10. In The End You Know The Consumer Will Lose......

These oil companies will make it up on our backs somehow. You just watch.

[Fred Sanders]

11. So it is a fucking disaster when prices go down AND when they go up? Who to believe! I vote with my

wallet.

[bobalew]

12. Gas prices correlate loosely to the WTI crude price, with a time lag

Usually 1.5 months later. It is better to check the Oil futures prices of WTI crude & Brent ICE, and then look at what is happening to the average gas price, to figure out what is happening. So far, Gas will be lower for a while. As Saudi Arabia & Other OPEC members flounder, they will have to cut production to get the price back up. What's happening now is a ploy to stop our Horizontal drilling supply by making the price to a level not profitable. However that looks like it it is backfiring back on them. Sooner or later, some saudi prince will not be able to afford his new, gold plated, diamond encrusted Mercedes SLK, and they'll have to cut supply to get the price back up. That will start our drilling once again, and we'll be off to the races with higher prices once again. Meaning:'The consumer ALWAYS gets screwed in the end.

[Champion Jack]

14. The good news is that it's really hurting the Frackers

Who can't even break even at these prices.
Crash baby, Crash

[msongs]

15. $3.53 @ costco honolulu and 3.79 or so at other local stations. down from $4.50 last spring nt

[MohRokTah]

16. The best news is, keep it under $80/barrel and tar sands oil is not profitable. eom