OPEC vs US shale

[farmadiazepine]

Can someone please explain this to me..

Since oil is now in a bear market, and OPEC's production cut did not really do much to increase the price of oil, why is it that everything I read in the news say that OPEC should cut down production, while the US is allowed to increase production?

Like, if we are complaining about and oversupply of oil, and then OPEC says it will cut down production, why does the US then increase production? Aren't we at fault also for the oversupply?

Like, the US is increasing production due to the higher prices, but then when we increase production, prices will drop. Aren't we also to blame?

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[WVUPharm2007]

Why in gods name are you asking this on a pharmacy forum? How the hell would we know.

 

[farmadiazepine]

Why in gods name are you asking this on a pharmacy forum? How the hell would we know.

Hahahahhahah

I thought (and still think) there were enough smart people on this forum who would know about it, and doing a Google search to find this particular answer is so painful. It always turns up the same results, OPEC cut production, but their idea didn't work, US production is doing great and producing more and more each day due to higher prices.

So everything I read is so one sided and biased. I want to know why does the US keep increasing production but wants OPEC to cut it?

 

[PharFromNormal]

This is way off topic but I think my first question is what side do you sit on. Some would say an oversupply of oil isn't a bad thing as it will cause the prices to drop. As you know the US isn't in OPEC and we probably don't want to be a slave to their controlled production and in turn very controlled pricing. By ramping domestic production the US can essentially make OPEC insignificant to their own oil needs.

 

[PharmtoCS]

Like, the US is increasing production due to the higher prices, but then when we increase production, prices will drop. Aren't we also to blame?

It lowers oil prices but works but great for our market share. Saudi Arabia tried to do the same in 2015-2016 by flooding the market with cheap oil to drive US shale producers out of business.

 

[lord999]

PM'ed answer. I guess you all didn't take classes with the chemical engineers. Many drugs have a petroleum derivative lineage.

 

[zelman]

PM'ed answer. I guess you all didn't take classes with the chemical engineers. Many drugs have a petroleum derivative lineage.

The vials do, too.

 

[quickpic007]

Hahahahhahah

I thought (and still think) there were enough smart people on this forum who would know about it, and doing a Google search to find this particular answer is so painful. It always turns up the same results, OPEC cut production, but their idea didn't work, US production is doing great and producing more and more each day due to higher prices.

So everything I read is so one sided and biased. I want to know why does the US keep increasing production but wants OPEC to cut it?

My guess is opec wants to cut to drive price higher, but as of 2017 Summer stateside oil is now profitable at 40-50$ barrel?

Just frack it and worry about it later. Stop terrorism and create US jobs its a win-win.

 

[CountBy5s]

Keep in mind. That OPEC is not our friend. They are cutting supply bc we are not paying high prices. In turn we increase us drilling /shale oil to stick it to them until they drop their prices again. It's a win for the US and South Texas... Which will be good for pharmacists job market /whole economy in South Texas.

 

[WVUPharm2007]

Long term it's all going to be replaced by solar, anyway. It'll be interesting to see the entire world not care about the Middle East all of a sudden. We'll treat them like we treat Africa.

 

[CetiAlphaFive]

It lowers oil prices but works but great for our market share. Saudi Arabia tried to do the same in 2015-2016 by flooding the market with cheap oil to drive US shale producers out of business.

The reason OPEC is losing influence is that they control the market with cheap prices on cheap oil.

Shale oil disrupted the global market by introducing high quality oil for a relatively cheap price.

There's a reason Saudi citizens are paying taxes for the first time in recent memory.