Why are we still dependant on Saudia Arabia for oil?

[Anonymous]

I have heard multiple times in the media that we are "oil independent" and we now export more than we import. I don't know if this is true or if its bullshit.
If true, why are we still dealing with these overly wealthy princes and sultans in Saudi Arabia???

Don't you think its still a national security issue that we have a dependency on mid east oil???

[Anonymous]

WE AREN'T. - TESLA DRIVER

[Anonymous]

Huh? We're really not. We haven't been, since fracking started.

[Anonymous]

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

+1

Fracking is a huge problem for Saudi Arabia and Russia. This price war is bad for us. It's really bad for them.

[Anonymous]

Oil is globally traded, there is a world market, so there is a world price (with some adjustments for local quality). So even if we don't import oil from Saudi, what it does has a huge impact on the price of oil here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

+1

Fracking is a huge problem for Saudi Arabia and Russia. This price war is bad for us. It's really bad for them.

They're the ones instigating the price war because they're trying to fck over the frackers. Fracking is a huge medium/long-term problem for both countries, so they want to try to squeeze the frackers as much as possible. US frackers are way more vulnerable to price shocks than Saudi Arabia and especially Russia.

[Anonymous]

We are not. But they control prices on way down by flooding world market cheap oil hence crushing oil prices

[Anonymous]

They are fighting among themselves, but its going to hurt us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

+1

Fracking is a huge problem for Saudi Arabia and Russia. This price war is bad for us. It's really bad for them.

Saudis have the cheapest cost of production of any country in the world. Fracking is significantly more expensive. Frackers have been buoyed by cheap credit, many will go out of business if this price war lasts.

[Anonymous]

Please read this informative thread (click to bring up the whole thing). It explains how increasing production to flood the market lowers prices and hurts US exports:

[Anonymous]

Anonymous wrote:They are fighting among themselves, but its going to hurt us.

If we were dependent on Saudi Arabia as we used to be for oil this news would be great. Cheap oil used to fuel our economy when we were a big time net importer.

There's a good article in the Washington Post (behind the paywall) that lays out the case that Saudi Arabia and Russia are fighting but the result is that the Saudi prince has decided to start a price war of attrition where they think they have a long term advantage. They expect to drive U.S. frackers out of the market.

The Oil Price War Is Turning Into a Debt War
by David Fickling

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

+1

Fracking is a huge problem for Saudi Arabia and Russia. This price war is bad for us. It's really bad for them.

Saudis have the cheapest cost of production of any country in the world. Fracking is significantly more expensive. Frackers have been buoyed by cheap credit, many will go out of business if this price war lasts.

Frackers will go out of business if this price war lasts (but oil people are used to that, prices change, wells dry up, etc.). But the House of Saud and Putin will also go out of business if this price war keeps up. They can't afford it either.

[Anonymous]

I work on this. We aren't dependent. We are net exporters.

But oil barrel prices are tied together worldwide.

Also, the US is sitting on vast oil reserves that could be tapped in case of emergency. Currently prices aren't high enough for companies to want to go after those.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

+1

Fracking is a huge problem for Saudi Arabia and Russia. This price war is bad for us. It's really bad for them.

Saudis have the cheapest cost of production of any country in the world. Fracking is significantly more expensive. Frackers have been buoyed by cheap credit, many will go out of business if this price war lasts.

Frackers will go out of business if this price war lasts (but oil people are used to that, prices change, wells dry up, etc.). But the House of Saud and Putin will also go out of business if this price war keeps up. They can't afford it either.

The Russian's definitely can't afford it for long, but the Saudis can. First, because their cost of production is low and secondly because the king has sweeping powers which even Putin doesn't. They'll find a compromise, otherwise this will quickly escalate into a military conflict.

[Anonymous]

Anonymous wrote:WE AREN'T. - TESLA DRIVER

Tesla stock is crashing today too. No point expensive electric cars when gas is 99 cents a gallon and folks cant sell overpriced stocks to buy overpriced cars.