@themotleyfool: It’s great that the U.S. is producing more oil, but don’t assume that means we’re the next Saudi Arabia. http://t.co/2fL8243d6T
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As a followup to that re-tweet… I had another article that came in and all those people that are looking for Oil to taper back off to the $60 might be in for a shock. They need to look at the bigger picture. Yes the US Is now producing more oil than they have for maybe 50 years…. We are shipping out mass quantities of oil based products overseas , because… our oil is cheap enough that the companies can make profits doing that.,
but the fact remains…
we use nearly or over 20 million barrels per day in US… we only produce about 1/3 of that maybe a bit more as the numbers are confusing or changing?
[gview file=”http://ishmaels.net/blog/wp-content/uploads/2014/02/U.S.-crude-oil-production-tops-7-million-barrels-per-day-highest-since-December-1992-Today-in-Energy-U.S.pdf”]
All that said we are still at a big shortfall on production and our energy industry it going nearly full out…?
next, the main issues that no one really looks at: the cost of finding and producing that oil…
Depending on who you get your info from the costs of finding, developing and producing oil in the world runs from a low of near $60 per barrel to over $100 per barrel… all that new oil that is being found in S. Texas and N. Dakota…. is about to level off with the amount of activity and effort put into it… If it was so profitable at current prices then the boom would be bigger and expanding, yet it appears that it has leveled off in some areas and just maintaining in others at this level… All that said…energy as a whole is still a good place to invest. Just be a bit picky and ensure the price you pay is not too high for the return you are getting. Some will go bust even at $100 a barrel…
WD0AJG
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