Quote:
Originally Posted by Elizondo
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Bro Old Dude on his knees polishin iron sheik pole right now beggin for more oil
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Gas getting over 4 dollars a gallon is actually really not bad for the US. They would become pretty rich. Domestically it sucks but foreign cash flowing into the US has a lot of advantages.
"In 2011, crude oil was trading at nearly $120 per barrel on the NYMEX. High oil prices were sustained until mid-2014, when prices crashed from $100 per barrel down to less than $50. While consumers rejoiced at lower gas prices, oil and gas producers scrambled to stay profitable.
At $120 per barrel, fracking is a very profitable business. At lower prices, companies are forced to weigh the cost of expensive fracking compared to less expensive extraction methods.
The most expensive oil produced in the United States today comes from older wells known as “stripper wells.” These are aging oil and gas wells that only produce a few barrels per day. The maintenance cost on the wells does not decline with oil prices, and these wells become unprofitable around $40 per barrel."