Quote:
Originally Posted by Chi-Town
Well, let's see, lower oil prices are good for consumers which number in the tens of millions, but not so good for the drillers in ND. They have had a pretty good run and will again. So let's enjoy this break while we can.
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Yes, let's definitely enjoy the lower gas prices. And let's not encourage unaware people into driving bigger, more gas guzzling vehicles as I see being driven a lot by "the working poor" AND well-off people here who are NOT using their dual-cab Ford F150 or F250 for self-employed construction or landscaping work.
If domestic drillers in ND, Texas, Pennsylvania, and many other places face imported crude prices lower than their costs of drilling, they will not be able to continue toward our national energy independence.
On
other states' drillers being affected:
"One looming threat due to low prices and reduced oil drilling involves refineries, specifically those that refine PennGrade crude oil. The two leading buyers of crude from Pennsylvania oil wells are American Refining Group (ARG) of Bradford and Ergon Oil Purchasing of Newell, W.Va.
If low prices sap production, that will impact refinery operations that rely on millions of barrels of crude oil from PennGrade producers in Ohio, Pennsylvania, New York and West Virginia.
Two years ago, when strict regulations aimed at deep Marcellus gas and Utica oil operations threatened to derail the smaller producers who were cutting back their operations, the refiners reported they were operating below capacity because of a drop in PennGrade supplies. Low oil prices will further depress production, said D'Amico.
In addition to low prices whipsawing the shallow oil industry, the lack of available acreage for more drilling is cutting into production, said D'Amico…."
Crashing oil prices hurting Pennsylvania drillers - SFGate