Could Dipping Oil Prices Hurt The Bakken?

fiscal-cliff

Oil production in North Dakota’s Bakken oil fields continues to grow at exponential rates. But nationally America sits on the edge of a fiscal cliff. Should we see another economic crash, and the sort of dramatic dip in oil prices such as the one we saw circa-2008, could it hurt Bakken oil production?

A collapse would obviously hurt wells in the drilling stage more so than those already pumping. America would still need oil, and the wells in North Dakota pumping that oil would go on providing it.

Still, though, yet another example of how profligate spending in Washington DC puts our nation’s well-being at risk.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • Mike Quinn

    Republicans know their worst nightmare is for Obama to succeed. That would mean taxing the rich works. In order to keep this from happening Republicans think the best thing in the short run would be to run the economy into the ground. You can see guys like the Papa John’s rat threatening employees. Other rats are rattling the same sword. The rats are saying if you tax us we will make you suffer. The CEO of Papa Johns has a 22 million dollar home and claims he will go broke if he has to give his employees health care. The greedy rats will do anything to get more, more, more. The Republicans are drunk on greed.

    • JW -American

      Do you have any idea how he made the money to buy that house, you class envy propagandist? He sold a shit load of pizzas with a razer thin margin!

      He (Papa Johns Corporate) at best, made 20-30 cents per pizza x millions of ‘zas.. if his costs due to ObummerKare cost him an extra 15-20 cents a Pizza, how do you expect him to even keep the doors open? Papa Johns does have to compete with dozens of other pizza shops that for the most part already limit their exposure to ObummerKare due to 80-90% pt help. He will also compete with the frozen section of the grocery store which will no doubt see an increase in sales as the economy shrinks and people do more home cooking.

      Gov. meddling with the free enterprise system usually runs afoul with the laws of unintended consequences ,and Papa Johns is but the first of many to expose what those laws will produce.

      Class warfare, the Trump card of Communism.

    • Gern Blanston

      Mike- you are so much better
      for this Blog when you avoid the hate-filled class envy and post some coherent thoughts.
      You could have made the same point with less hate. Hate begets hate. Vitriol
      begets vitriol – I’m the first to admit I drop into your pit of vitriol too
      often. Just try a little harder. If you post politely and it is followed by
      pissy rants against you, then you will at least look classier for your form of
      dialogue. But not so much when you jump out of the gate with class warfare.

    • Gern Blanston

      As for Obama succeeding – he already has: he got Obamacare, he’s executed approahing 300 executive orders, etc. His only real failure is that he can’t get his budget passed – but then that’s as much the fault of the Democrats who refused to give one vote for it. It IS our worst nightmare – and now we get four more years of it. If he succeeds any more, the working poor, downtrodden, minorities, women, and all the other ‘little people’ he suposedly represents will have even worse economic circumstances than they have now after his first four years in office.

    • Gern Blanston

      Your class warefare is inconsistent: On one hand, the evil conservatives are all about greed and taking more from the working class – somehow, Yet they are apparently willing to lose it all by driving the economy farther into the gutter to prove a political point. The left controls the Senate and the Executive branch, and has for four years; they controlled the entire legsilative branch and the exeutive for two years. prior to that they controlled the legislative branch for two years, effectively neutering Bush since Jan. of 2007. When are they going to step up and own their messes?

  • JW -American

    Just as a rising tide lifts all boats, a sinking ship sinks all passengers, and the SS Obummer is heading for the edge of the sea that sailers once worried about.

  • DelawareBeachHouse

    Sure, it could hurt. Canadian companies have recently delayed production plans for the oil sands because of price issues.

    http://professional.wsj.com/article/SB10001424052970204005004578080733669452700.html?mg=reno64-wsj

  • matthew_bosch

    The good news:
    -Asia’s oil consumption is still outpacing reduced demand in the West. The market potential for an Oil exporter is very positive as China and India continue to complete their industrialization and move into first world.

    The bad news :
    -US president who is unfriendly to fossil fuels.
    -US president who is unfriendly to business/producers.
    -US government which has outspent beyond its revenues and borrowing capacity.
    -US president who believes debt can be remedied by stripping limited capital from producers to fill small a percentage of the sum of debt incurred.

    Is there potential for the United States to be a successful leader in global oil production? Yes.

    Can the United States maintain economic solvency to become that successful leader in global oil production? No, not under current leadership.

  • borborygmi

    considering there is a break even point for production of course. Plus side of dramatic dip in oil prices should be a corresponding dramatic dip in gas prices. Reg Joes willl do a happy dance.

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