Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Texas Is About to Create OPEC’s Worst Nightmare

bloomberg.com

Post reply on HN
Print view View original

11–20 of 132 posts

Re: Texas Is About to Create OPEC’s Worst Nightmare

#11

Post by toomuchtodo »

Kaveren wrote: post #7

I'm hopeful that America can further lessen our dependence on Saudi Arabia as much as possible through this. Alas, the alliance is based around a lot more than just oil, and the Saudi vision is to shift away from oil reliance, but I'll gladly take a chink in the armor. > "Global oil demand has so far absorbed the extra U.S. crude barrels, limiting the impact on prices" This slightly curbs my optimism.

This isn't feasible. The refineries in the US are not designed for the same oil produced by the Permian basin (the Permian is producing light crude, US refineries are configured for medium to heavy crude). More importantly, oil is fungible on the world market; you can't effectively dictate "Oil produced in America is consumed in America" without drastically regulating the energy market with public policy (not going to happen).

https://www.reuters.com/article/us-usa-oil-exports-study/sha... (Shale oil growth to overwhelm U.S. refiners, fuel exports: study)

https://www.cnbc.com/2018/04/17/shale-oil-has-a-refining-pro... (Shale oil has a refining problem, and Morgan Stanley thinks investors can profit)

If you want to lessen your dependency on middle east energy, switch to electric cars, trucks, and busses faster.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#13

Post by liftbigweights »

What hyperbolic clickbait nonsense.

> If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share.

Considering oil prices have gone from near $80 to near $55 in about a month, I'm guessing they've decided to maintain or even increase production. That is unless the saudis and the wall st banksters decide to game the market as they do from time to time. But of course the bloomberg "journalists" wouldn't know anything about it or investigate that because they are allergic to real journalism like more establishment media.

> But because the Saudis need higher crude prices to make money than U.S. producers, OPEC can’t afford to let prices fall.

The saudis make money on their oil. They don't need higher prices for that and certainly their oil is more profitable than shale oil. What they need is higher oil prices to maintain their government budget.

If you want to know what a joke bloomberg is...

The same journalist wrote this today : "Saudi Oil Production Surges to Record in Early November"

https://www.bloomberg.com/news/articles/2018-11-21/saudi-oil...

If anyone working at bloomberg knew what they were talking about, they wouldn't be working at bloomberg. They'd be raking in the millions working for themselves.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#14

Post by sk5t »

lykr0n wrote: post #5

Texas is in a funny place. They are pumping oil like crazy, but they are building wind like crazy as well. Look at the City of Austin and the amount of renewables year over year: https://data.austintexas.gov/Utilities-and-City-Services/Gen... You can see a real-time chart of energy mix here: https://austinenergy.com/ae/about/environment/renewable-powe... Most days renewables are 50% of electricity consumes. I pay a b…

Isn't it typical for each economy to export the thing it is best at producing?

Also look at Norway--huge petroleum wealth, lots of Teslas because oil is dirty.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#16

Post by crwalker »

lykr0n wrote: post #5

Texas is in a funny place. They are pumping oil like crazy, but they are building wind like crazy as well. Look at the City of Austin and the amount of renewables year over year: https://data.austintexas.gov/Utilities-and-City-Services/Gen... You can see a real-time chart of energy mix here: https://austinenergy.com/ae/about/environment/renewable-powe... Most days renewables are 50% of electricity consumes. I pay a b…

This sounds like a preeminently practical strategy.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#17

Post by CodeSheikh »

lykr0n wrote: post #5

Texas is in a funny place. They are pumping oil like crazy, but they are building wind like crazy as well. Look at the City of Austin and the amount of renewables year over year: https://data.austintexas.gov/Utilities-and-City-Services/Gen... You can see a real-time chart of energy mix here: https://austinenergy.com/ae/about/environment/renewable-powe... Most days renewables are 50% of electricity consumes. I pay a b…

Don't forget that Texas is also one of the largest producer of nuclear energy in the nation.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#18

Post by liftbigweights »

lykr0n wrote: post #5

Texas is in a funny place. They are pumping oil like crazy, but they are building wind like crazy as well. Look at the City of Austin and the amount of renewables year over year: https://data.austintexas.gov/Utilities-and-City-Services/Gen... You can see a real-time chart of energy mix here: https://austinenergy.com/ae/about/environment/renewable-powe... Most days renewables are 50% of electricity consumes. I pay a b…

> Texas is in a funny place. They are pumping oil like crazy

Texas had always pumped a lot of oil. Texas was the oil capital of the world for a long time before saudi arabia came around.

> but they are building wind like crazy as well.

That's because one of the wealthiest men in the world has been a big fan of wind energy.

http://www.nbcnews.com/id/19231397/ns/us_news-environment/t/...

> I could easily see Texas being a majority renewables while at the same time exporting more and more Oil.

No major state or country is going to be renewable majority for a very long time ( if ever ). Least of all texas.

https://www.eia.gov/energyexplained/images/charts/primary-en...

Re: Texas Is About to Create OPEC’s Worst Nightmare

#19

Post by 2trill2spill »

sk5t wrote: post #14
lykr0n wrote: post #5

Texas is in a funny place. They are pumping oil like crazy, but they are building wind like crazy as well. Look at the City of Austin and the amount of renewables year over year: https://data.austintexas.gov/Utilities-and-City-Services/Gen... You can see a real-time chart of energy mix here: https://austinenergy.com/ae/about/environment/renewable-powe... Most days renewables are 50% of electricity consumes. I pay a b…

Isn't it typical for each economy to export the thing it is best at producing? Also look at Norway--huge petroleum wealth, lots of Teslas because oil is dirty.

Depending on where you get the electricity to charge your Tesla it could be worse than oil. But seeing as Norway gets almost all of it's electricity from renewable energy that's not the case there.

Re: Texas Is About to Create OPEC’s Worst Nightmare

#20

Post by meroes »

toomuchtodo wrote: post #11
Kaveren wrote: post #7

I'm hopeful that America can further lessen our dependence on Saudi Arabia as much as possible through this. Alas, the alliance is based around a lot more than just oil, and the Saudi vision is to shift away from oil reliance, but I'll gladly take a chink in the armor. > "Global oil demand has so far absorbed the extra U.S. crude barrels, limiting the impact on prices" This slightly curbs my optimism.

This isn't feasible. The refineries in the US are not designed for the same oil produced by the Permian basin (the Permian is producing light crude, US refineries are configured for medium to heavy crude). More importantly, oil is fungible on the world market; you can't effectively dictate "Oil produced in America is consumed in America" without drastically regulating the energy market with public policy (not going t…

Did your desire to use the word fungible outweigh the fact that the US has drastically reduced its dependence already?
Post reply on HN