Is China's Devalued Currency a Takedown on Oil Prices, Too?

$20 Oil Or Economic Collapse?

Whether prices hover in the $30 oil range or slump into the $20s, the United States is fairly insulated by its prodigious production.

Carl Larry

Director of Oil and Gas Business Development, Frost & Sullivan

The United States “has this humongous production, and the ability to export any kind of crude it wants. It’s running crude refineries at 16.1 million barrels per day in 2015, which are record rates,” said Carl Larry, director of oil and gas business development at Frost & Sullivan. “The fact is [oil] needs to figure out that the rest of the world is in a panic. That probably means the economic collapse of some oil producing countries based on a $20 oil scenario.”

It’s the OPEC nations that are under stress to act, and it needs to be a collaborative event, Larry said.

“If oil drops under $25, I don’t think it’s in the American interest would be to cut back production. Why would we cut back production when we just cut back production we don’t need or export it? The rest of the world can’t say that. We have that luxury, for the amount of crude we can consume,” he told Rigzone. “If you’re an American, you want $20 oil. In 2003, I said we would never see gasoline under $2 again. It’s amazing to see gas under $2 now. Since when is it a terrible thing when working Americans can enjoy the cheap gasoline?”

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