The cost of a barrel of Kansas oil has fallen by a third in the last two weeks, as it has elsewhere. More importantly, this week it fell past the key $70 a barrel mark that several Kansas oilmen say is the tipping point for when they’ll go out and drill new wells.
I’m guessing it has local oilmen rattled, but probably they’re taking a wait and see attitude before they cancel their orders for oil services contractors and lay off workers. The price snapped back slightly so far Friday and it looks like OPEC is swinging into action to cut production.
3 Comments
Forget OPEC. Hopefully, we can make it financially beneficial for our American oil drillers to do their thing and reduce, even further, our dependence on foreign oil. That, and other home-grown power such as solar, wind, hyrdo and biofuels…
Gangsta – until we have decision-makers who will commit to alternative energy sources we will remain addicted to OPEC oil.
Based on the information in front of us, the idea that further drilling will lessen our dependence on foreign oil appears to be a myth. Plus, it will take years to get to that oil.
The bridge solution, frankly, might be natural gas coupled with a governmental commitment to alternative energy sources.