News for hackers. Stuff that matters.

A comment on The United States Is Now the Largest Global Crude Oil Producer. Parent comment

Re:The United States Is Now the Largest Global Crude Oil Pro... by aphextron on Wednesday September 12, 2018 @03:38PM (#17972383)
>No, not really. They still have the ability to flood the market and cause prices to tank, which would wreak havoc on the US fracking industry.

...And tank their own profits? Cheap oil is good for literally everyone but the Saudis, that's the entire reason they've cut supplies since the glut of 2014-15.

US fracking is already barely at a fraction of capacity right now with how low prices are. It's not an essential industry for us, and our economy is doing fine without it. At this point the US can essentially produce unlimited oil at ~$50/barrel (break even for fracking with current tech [0]) whenever we want.

[0] https://www.reuters.com/article/us-usa-shale-kemp/u-s-shale-...

[ Parent | on HN ]
Re:The United States Is Now the Largest Global Crude Oil Pro... by seibelj on Wednesday September 12, 2018 @03:46PM (#17972462)
I always bet on entrepreneurs and free markets over kingdoms and dictatorships. The Sultan got things set up a certain away and assumed nothing would change, while the free West just responds and innovates no matter circumstances.
[ Parent | on HN ]
Re:The United States Is Now the Largest Global Crude Oil Pro... by brianpgordon on Wednesday September 12, 2018 @07:07PM (#17974338)
I don't know about all of that. We got lucky to have such rich natural resources within our borders. All of the innovation and entrepreneurship in the world wouldn't have helped much if a bunch of plants and dinosaurs didn't happen to die and get buried in a geologically fortuitous way.
[ Parent | on HN ]
Re:The United States Is Now the Largest Global Crude Oil Pro... by icebraining on Wednesday September 12, 2018 @06:49PM (#17974222)
They didn't assume that; they have been investing in alternative sources of income for a long time, including in renewables and EVs.
[ Parent | on HN ]
Re:The United States Is Now the Largest Global Crude Oil Pro... by AnimalMuppet on Wednesday September 12, 2018 @04:17PM (#17972775)
> Cheap oil is good for literally everyone but the Saudis, that's the entire reason they've cut supplies since the glut of 2014-15.

Everyone but the Saudis, and the Iranians, and the Russians, and the Venezuelans.

[ Parent | on HN ]
Re:The United States Is Now the Largest Global Crude Oil Pro... by enraged_camel on Wednesday September 12, 2018 @04:12PM (#17972732)
>>...And tank their own profits? Cheap oil is good for literally everyone but the Saudis, that's the entire reason they've cut supplies since the glut of 2014-15.

Like you yourself said, Saudis are obscenely rich. They can tolerate losses in profits. In contrast, fracking companies in the US can't, at least not without massive government subsidies.

[ Parent | on HN ]