If the U.S pumps between 8-10 million barrels a day, that one day of zero production would drop inventory dramatically every week. One or two months top to drop inventory. The only alternative is mass bankruptcies, hundreds of thousands of layoffs, and a sudden huge increase in prices when OPEC cuts. Seems logical to turn off for one day a week, save jobs, save companies and not be controlled by Saudi.
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I wouldn't think us could transport it alone for less than what it sellin for
That one guy throwing around his college tho. Haha! No way that guy had anything above a GED.
Yeah, it would work. But you could never get everyone on board. Agree with the dog eat dog comment. The people saying it wouldn't work are missing the point entirely. Gotta love dummies questioning the intellect of others. It would work, it would just never be attempted. In fact, that's the whole point to why SA waged a production war. They want to price U.S shale out of its own market. It's just taking longer than they figured and can't be sustained more than a quarter or two anyways.
Such a simple idea for the simple minded. Not even worth explaining why it would never work.
Its a BS degree. From U of M. M=morons. full honors in fantasy and make believe.
Yeah, I agree that "College educated" is a moron. Here I sit with a master's in mechanical engineering and never bring it up outside of job interviews. You got guys like him who's probably a douchebag salesman with an associates in liberal arts, just mouthing without even thinking. While it's not as easy as stopping all production, that certainly would drop inventory and stabilize prices quickly. Even the hint of doing it would send speculators into a frenzy.
College educated needs to go back to college and get his money back. The post was about the physical inventory. A simple breakdown..... You pour 1 cup of milk into a bucket every day for a week. Your dog drinks 4 ounces (half) of it every day. At the end of the week you have 3.5 cups total remaining. Keep this up and you eventually fill the bucket. You must then only pour half a cup every day just to give the dog it's normal amount. However, pay attention community college educated. You don't pour any milk in the bucket on Monday. The dog continues drinking it's regular amount. Do this for a few weeks and it will take longer to fill the bucket. This buys you time until your other dog gets home from vacation and you break even with the milk game. Yes, speculation and revenue. The point I believe the author was making is a slight tempory dip in revenue is better than a massive forced long term halt.
That's the dumbest idea and logic that's wrong with this country...you don't know what your talking about and voice wrong information for others to follow. It makes not a difference about how long you pump vs the amount you pump and price per unit. Say oil is 10$ a barrel and you can pump 100 barrels a day. That's $1000 a day or 7000$ a week. This price of 10$ is set as the market is use to 700 barrels a week to use. Now if you cut it down to down to 600 barrels a week, supply and demand will jump and either remain the same per unit or slightly increase. So let's say the price jumped 10% to 11$ per barrel which would give us 1100$ per day. Now to pump at 6 days rather than 7, give us 6,600$ which is less than the 7000 originally. So rather than cutting back, it's trying to pump more than the other guy to sell more units cheaper till he bankrupts. The only way is to drive the need higher, thus the price per unit.
Never happen. This is dog eat dog society we live in.
That's the whole point - nobody wants to do it first, as the guy who continues to pump is to reap the benefits of the drop - he will be the one producing while the prices go up
That's......hmmmm.......that's actually a really good idea. You'd have some gas lock issues in a few places but it would save billions overall, across the industry.
Why doesn't SA Shut their wells down for a week.