Monday, December 29, 2014

This Week In Saudi Arabia's War On America


This is the Baker Hughes Rig Count - North American oil and gas wells in operation from Jan 1, 2000 to present.

Business Insider has an alarming sounding article talking about how many oil wells have closed in the past few weeks. Doing some rough calculating of my own their numbers are dropping at 2 percent per week (a drop of 35 last week from 1840 to 1875.)

Here's a state by state chart showing the numbers of New Mexico's rigs and how they compare to other states.

Note: Diesel fuel pump prices have declined by about 80 cents per gallon. Most cars, pickups, lawn mowers, etc., run on another type of fuel.

Many people think Saudi Arabia, which can make a profit at $40 per barrel, some say even as little as $30, is trying to put a dent in the US fracking boom. The price needed for US wells to profit varies by individual well but estimates I've seen are in the $50-70 range. Here's a chart for the year for West Texas Intermediate Crude Oil, which had declined to $53 per barrel this afternoon:

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