OPEC is effectively dissolved, per BoA analysts

[grampster]

Since we produce enough oil, we have Canadian oil if we want it, Mexican oil, and we could probably make friends with Venezuela again, I've held that we should make sure Israel in secure and let the rest of the Middle East have at it and see who the last man standing is.

[Perd Hapley]

Once that's depleted the Saudis are going to have to cut the pork to either their elite or the masses.

I think you mean shawarma. 

[wmenorr67]

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbbl_m.htm

Where we get our oil.

[Scout26]

This, to me, is more telling:

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbbl_a.htm

We're using 700,000,000 fewer barrels of oil per year (in 2013) compared to 2008.  That's the sign of a shrinking ecnomy, because there aren't THAT many Priuii on the streets.

[Balog]

I've never really understood why we both export our own oil, and import OPEC's oil. Seems to me that if we kept our oil, built many more refineries, and also built a lot more nuclear power plants we'd be totally self-sufficient for energy in what, maybe a decade? Two at the most?

[wmenorr67]

Our oil is not as easy to refine as imported oil.

[Scout26]

I've never really understood why we both export our own oil, and import OPEC's oil. Seems to me that if we kept our oil, built many more refineries, and also built a lot more nuclear power plants we'd be totally self-sufficient for energy in what, maybe a decade? Two at the most?

For the same reason people order stuff from Amazon as opposed to going to the local store and buying one.

Some is also what Bill said.   Different oils breakdown into differing amounts of Gasoline, Diesel, Heating Oil, etc.  The refiners may want something that breaks down into more Diesel then other oils, or they want the most Gasoline, etc.  Perhaps there's a "deal" on a shipment.  A wide variety of factors goes into what the refineries buy and then make  .

The Oil prices you normally see are for "North Sea Brent" or "Texas Light Sweet".  Other flavors of oil and vary from what is listed.

[KD5NRH]

For the same reason people order stuff from Amazon as opposed to going to the local store and buying one.

Surely the US can come up with a domestic crude oil retailer not entirely staffed by jerks and idiots.

[RocketMan]

These major dips in crude prices are always temporary.  In six to eight months, the price of crude will be back up in the $85-$95 range after all the financially weaker players have been forced out of the fracking business.  There will also be a fair amount of consolidation as some of the failing companies are absorbed by the big outfits with deep pockets.
In the meantime, enjoy the lower gas prices.  They will be headed back up soon enough.

[TommyGunn]

These major dips in crude prices are always temporary.  In six to eight months, the price of crude will be back up in the $85-$95 range after all the financially weaker players have been forced out of the fracking business.  There will also be a fair amount of consolidation as some of the failing companies are absorbed by the big outfits with deep pockets.
In the meantime, enjoy the lower gas prices.  They will be headed back up soon enough.

Will the Dow Jones be back up soon?  ... 

[RocketMan]

Will the Dow Jones be back up soon?  ... 

Your tinfoil hat and rolleyes smileys are silly as no conspiracy theories were implied or intended.  Ordinary market forces will drive oil prices back up at some point.  Historically, they always have.

As far as the market goes, I don't really know.  My gut tells me it's overbought simply because the economy is not all that robust.

[Scout26]

Yep, th market is a bubble.  There's currently no where else for money to go, so everyone is chasing stocks.  The crash is going to be epic...

[TommyGunn]

Your tinfoil hat and rolleyes smileys are silly as no conspiracy theories were implied or intended.  Ordinary market forces will drive oil prices back up at some point.  Historically, they always have.

As far as the market goes, I don't really know.  My gut tells me it's overbought simply because the economy is not all that robust.

I didn't intend to convey the idea a conspiracy theory was involved ...  We need a "tongue in cheek" smilie.  We have a tongue but it doesn't really convey what I intended.

Yep, th market is a bubble.  There's currently no where else for money to go, so everyone is chasing stocks.  The crash is going to be epic...

Like this?↓↓↓↓

[KD5NRH]

Like this?↓↓↓↓

Maybe a cross between that and

[Scout26]

Here's an interesting analysis/reason for the drop.  The Saudi's aren't aiming to drive US producers out of the market (but they may consider that a bonus), but are aimed at Iran.  Looks like they have done this twice before.  Once that ultimately drove the Shah from power and again in 2009 against Ahmadinejad in an election year.

And since the Saudi's (Wahhabi/Sunni Arabs) have a long standing beef against the Iranians (Twelver Shia Persians)

Apparently, it's not always about us...


http://foreignpolicy.com/2014/12/18/why-would-the-saudis-crash-oil-markets-iran/