--- title: "Meaning & Key Takeaway of: I said earlier [2015] year that I thought…" description: "\"I said earlier [2015] year that I thought we'd get to 10 or 20 bucks [per barrel ] because that's the marginal cost, and when you're in a price war, it..." image: "https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg" --- # I said earlier \[2015\] year that I thought we'd get to 10… ![“I said earlier [2015] year that I thought we'd get to 10 or 20 bucks [per barrel ] because that's the marginal cost, and when you're in a price war, it's the marginal cost that determines the price.It is a price war because basically the OPEC reason did not cut production in their November 2014…” quote by Gary Shilling](https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg) [Download](https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg) [Open image](https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg) > “I said earlier \[2015\] year that I thought we'd get to 10 or 20 bucks \[per barrel \] because that's the marginal cost, and when you're in a price war, it's the marginal cost that determines the price.It is a price war because basically the OPEC reason did not cut production in their November 2014 meeting was that they got tired of cutting production and having American frackers and Russians et cetera grab market share.” [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Marginal cost drives prices in competitive markets; OPEC’s production cuts aim to avoid price wars but can backfire. **In simple terms:** Cost determines price in wars; OPEC cuts to keep market share. Key Takeaway Watch marginal cost when analyzing price wars. Themes energy markets price wars OPEC production Mood analytical concerned Type economic strategic When to use this quote - oil pricing - energy policy - investment decisions - risk assessment Key Concepts economics market dynamics strategic behavior Questions to Reflect On - How does marginal cost influence your pricing strategy? - What are the risks of OPEC production cuts? A Different Perspective Assumes all players act rationally; geopolitical factors may dominate. ★ ★ ★ ★ ★ No ratings yet [Climate](https://sms4smile.com/quotes/about/climate/) [Investing](https://sms4smile.com/quotes/about/investing/) [Market share](https://sms4smile.com/quotes/about/market-share/) [Meetings](https://sms4smile.com/quotes/about/meetings/) [November](https://sms4smile.com/quotes/about/november/) [Opec](https://sms4smile.com/quotes/about/opec/) [Reason](https://sms4smile.com/quotes/about/reason/) [War](https://sms4smile.com/quotes/about/war/) ## Related quotes > [OPEC production went from 30 million barrels a day to 33 million. They flooded the market, and it's lost them a lot of money.…](https://sms4smile.com/quotes/gary-shilling/opec-production-went-from-30-million-barrels-a-day-to-33-million-they/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [From our perspective, there's been a price war in the PC industry since we opened for business in 1985.](https://sms4smile.com/quotes/ted-waitt/from-our-perspective-there-s-been-a-price-war-in-the-pc-industry/) [Ted Waitt](https://sms4smile.com/quotes/author/ted-waitt/) > [“share. The company’s stock price immediately fell by 26% as the move was widely hailed as a disaster for premium brands. But it was not; it…](https://sms4smile.com/quotes/greg-thain/share-the-company-s-stock-price-immediately-fell-by-26-as-the-move/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [The price of war is very high.](https://sms4smile.com/quotes/yoav-gallant/the-price-of-war-is-very-high/) [Yoav Gallant](https://sms4smile.com/quotes/author/yoav-gallant/) > [As the cost of gasoline rises and our dependence on foreign oil continues to increase, the effect of sending over $100 billion each year…](https://sms4smile.com/quotes/paul-gillmor/as-the-cost-of-gasoline-rises-and-our-dependence-on-foreign-oil/) [Paul Gillmor](https://sms4smile.com/quotes/author/paul-gillmor/) > [For decades, our dependence on OPEC oil has dictated our national security decisions and tied us up in the Middle East at an incredible…](https://sms4smile.com/quotes/t-boone-pickens/for-decades-our-dependence-on-opec-oil-has-dictated-our-national/) [T. Boone Pickens](https://sms4smile.com/quotes/author/t-boone-pickens/) > [There is no free market for oil. It's controlled by a cartel, OPEC.](https://sms4smile.com/quotes/frederick-w-smith/there-is-no-free-market-for-oil-it-s-controlled-by-a-cartel-opec/) [Frederick W. Smith](https://sms4smile.com/quotes/author/frederick-w-smith/) > [The dynamic shifted this year. There was a growing perception that supply was running out. The doomsday scenario that stated OPEC couldn't meet demand…](https://sms4smile.com/quotes/doug-leggate/the-dynamic-shifted-this-year-there-was-a-growing-perception-that/) Doug Leggate > [Instead of begging OPEC to drop its oil prices, let's use American leadership and ingenuity to solve our own energy problems.](https://sms4smile.com/quotes/pete-domenici/instead-of-begging-opec-to-drop-its-oil-prices-let-s-use-american/) [Pete Domenici](https://sms4smile.com/quotes/author/pete-domenici/) > [“The use of oil as the medium of exchange for the Al Yamamah contracts made bribes easier to hide, allowed Saudi Arabia to bypass…](https://sms4smile.com/quotes/andrew-feinstein/the-use-of-oil-as-the-medium-of-exchange-for-the-al-yamamah-contracts/) [Andrew Feinstein](https://sms4smile.com/quotes/author/andrew-feinstein/) > [If the Administration does nothing, high gasoline prices will continue to increasingly burden our economy, taking millions of dollars out of the hands of…](https://sms4smile.com/quotes/byron-dorgan/if-the-administration-does-nothing-high-gasoline-prices-will-continue/) [Byron Dorgan](https://sms4smile.com/quotes/author/byron-dorgan/) > [My problem is that my imagination won't turn off. I wake up so excited I can't eat breakfast. I've never run out of energy.…](https://sms4smile.com/quotes/steven-spielberg/my-problem-is-that-my-imagination-won-t-turn-off-i-wake-up-so-excited/) [Steven Spielberg](https://sms4smile.com/quotes/author/steven-spielberg/) > [ Four fifty-four for gas... because we have nobody that calls up OPEC... and say, \[mobster voice\] 'That. Price. Better. Get. Lower. And it better.… ](https://sms4smile.com/quotes/donald-trump/four-fifty-four-for-gas-because-we-have-nobody-that-calls-up-opec-and/) [Donald Trump](https://sms4smile.com/quotes/author/donald-trump/) > [Russia does not control oil prices - OPEC does. So Russia is a hostage in the hands of those who control these prices](https://sms4smile.com/quotes/christopher-a-pissarides/russia-does-not-control-oil-prices-opec-does-so-russia-is-a-hostage/) Christopher A. Pissarides > [The Christians had a better chance against the lions than the American consumer has against the OPEC cartel](https://sms4smile.com/quotes/ed-markey/the-christians-had-a-better-chance-against-the-lions-than-the/) [Ed Markey](https://sms4smile.com/quotes/author/ed-markey/) ## More by Gary Shilling > [Despite the recent conviction of many that we're headed back to inflation, I think deflation remains the more likely prospect. You've just got too…](https://sms4smile.com/quotes/gary-shilling/despite-the-recent-conviction-of-many-that-we-re-headed-back-to/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [One of the things I think is very likely is that with the prospects of robust fiscal stimulus in response to voters mad as…](https://sms4smile.com/quotes/gary-shilling/one-of-the-things-i-think-is-very-likely-is-that-with-the-prospects/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [If someone loves you, they can fall out of love with you but they're probably going to keep fearing you. That's where we are…](https://sms4smile.com/quotes/gary-shilling/if-someone-loves-you-they-can-fall-out-of-love-with-you-but-they-re/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [ \[Niccolò\] Machiavelli said it's better to be feared than to be loved. ](https://sms4smile.com/quotes/gary-shilling/niccol-machiavelli-said-it-s-better-to-be-feared-than-to-be-loved/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [We're in a pretty tumultuous world, and there's a lot of uncertainty. Treasurys are where people go as one of the few safe havens…](https://sms4smile.com/quotes/gary-shilling/we-re-in-a-pretty-tumultuous-world-and-there-s-a-lot-of-uncertainty/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [Bloomberg TVThe one thing I think is likely to happen under either candidate is massive fiscal stimulus. You have so many voters in Western…](https://sms4smile.com/quotes/gary-shilling/bloomberg-tvthe-one-thing-i-think-is-likely-to-happen-under-either/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [We've seen that in the past that where you've had uncertainty, and even where the Fed is raising rates, Treasurys rise as everybody heads…](https://sms4smile.com/quotes/gary-shilling/we-ve-seen-that-in-the-past-that-where-you-ve-had-uncertainty-and/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [ A \[Donald\] Trump win might be bad for stocks, but it would be very positive for the dollar and Treasurys. ](https://sms4smile.com/quotes/gary-shilling/a-donald-trump-win-might-be-bad-for-stocks-but-it-would-be-very/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [OPEC production went from 30 million barrels a day to 33 million. They flooded the market, and it's lost them a lot of money.…](https://sms4smile.com/quotes/gary-shilling/opec-production-went-from-30-million-barrels-a-day-to-33-million-they/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [ \[Donald Trump\] is so unpredictable that foreigners are going to look around and say "boy, we've got to head for the safe havens." And… ](https://sms4smile.com/quotes/gary-shilling/donald-trump-is-so-unpredictable-that-foreigners-are-going-to-look/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [Treasurys, as low as yields are, are higher than they are in most other developed countries.](https://sms4smile.com/quotes/gary-shilling/treasurys-as-low-as-yields-are-are-higher-than-they-are-in-most-other/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [If you look back historically at the post-WWII period on average, if you get a 100-basis-point increase in Fed funds, the spillover to the…](https://sms4smile.com/quotes/gary-shilling/if-you-look-back-historically-at-the-post-wwii-period-on-average-if/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [ Let's say \[Donald\] Trump wins. Is Congress going to let him build a wall on the Mexican border? 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Unless… ](https://sms4smile.com/quotes/gary-shilling/if-hillary-clinton-is-elected-is-she-going-to-be-able-to-jack-up/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) > [TPP is dead anyway, and similar deals in the eurozone are going nowhere.](https://sms4smile.com/quotes/gary-shilling/tpp-is-dead-anyway-and-similar-deals-in-the-eurozone-are-going-nowhere/) [Gary Shilling](https://sms4smile.com/quotes/author/gary-shilling/) [Explore all 20 Gary Shilling quotes ](https://sms4smile.com/quotes/author/gary-shilling/) ## More Barrels quotes > [It's good to find the barrel of the bat again.](https://sms4smile.com/quotes/chase-utley/it-s-good-to-find-the-barrel-of-the-bat-again/) [Chase Utley](https://sms4smile.com/quotes/author/chase-utley/) > [The benevolence of wrapping the partridge in a vine leaf brings out its quality, just as the barrel of Diogenes brought forth the qualities…](https://sms4smile.com/quotes/emmanuel-des-essarts/the-benevolence-of-wrapping-the-partridge-in-a-vine-leaf-brings-out/) Emmanuel des Essarts > [You could pay a fair market price for a barrel of oil and cut 50 cents a barrel or a dollar barrel off what…](https://sms4smile.com/quotes/eric-bolling/you-could-pay-a-fair-market-price-for-a-barrel-of-oil-and-cut-50/) [Eric Bolling](https://sms4smile.com/quotes/author/eric-bolling/) > [ \[Norden\] said, with the Mark 15 Norden bombsight, he could drop a bomb into a pickle barrel at 20,000 feet. ](https://sms4smile.com/quotes/malcolm-gladwell/norden-said-with-the-mark-15-norden-bombsight-he-could-drop-a-bomb/) [Malcolm Gladwell](https://sms4smile.com/quotes/author/malcolm-gladwell/) > [When the landscape buckles and jerks around, when a dust column of debris rises from the collapse of a block of buildings on bodies…](https://sms4smile.com/quotes/adrienne-rich/when-the-landscape-buckles-and-jerks-around-when-a-dust-column-of/) [Adrienne Rich](https://sms4smile.com/quotes/author/adrienne-rich/) > [The sudden release of five million barrels of oil, enormous quantities of methane and two million gallons of toxic dispersants into an already greatly…](https://sms4smile.com/quotes/sylvia-earle/the-sudden-release-of-five-million-barrels-of-oil-enormous-quantities/) [Sylvia Earle](https://sms4smile.com/quotes/author/sylvia-earle/) > [In addition, each barrel of oil we save through conservation further decreases our dangerous reliance on unstable Middle East oil.](https://sms4smile.com/quotes/paul-gillmor/in-addition-each-barrel-of-oil-we-save-through-conservation-further/) [Paul Gillmor](https://sms4smile.com/quotes/author/paul-gillmor/) > [Muzzle control has to be a religion. You cannot point that weapon at one of your brothers-or yourself. Know where you barrel is at…](https://sms4smile.com/quotes/dick-couch/muzzle-control-has-to-be-a-religion-you-cannot-point-that-weapon-at/) [Dick Couch](https://sms4smile.com/quotes/author/dick-couch/) > [The defense budget is more than a piggy bank for people who want to get busy beating swords into pork barrels.](https://sms4smile.com/quotes/anonymous/the-defense-budget-is-more-than-a-piggy-bank-for-people-who-want-to/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Today's political leaders demonstrate their low opinion of the public with every social law they pass. They believe that, if given the right to…](https://sms4smile.com/quotes/mark-skousen/today-s-political-leaders-demonstrate-their-low-opinion-of-the-public/) [Mark Skousen](https://sms4smile.com/quotes/author/mark-skousen/) > [Europe and North America, we are told, are less dependent on energy-intensive heavy industry than in the 1960s and 1970s. 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"I wish I could jog and sleep at the same time." "Can't you?" Ferrin asked, joining them at…](https://sms4smile.com/quotes/brandon-mull/you-look-tired-rachel-told-jason-i-wish-i-could-jog-and-sleep-at-the/) [Brandon Mull](https://sms4smile.com/quotes/author/brandon-mull/) Browse all 277 Barrels quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "I said earlier [2015] year that I thought we'd get to 10 or 20 bucks [per barrel ] because that's the marginal cost, and when you're in a price war, it's the marginal cost that determines the price.It is a price war because basically the OPEC reason did not cut production in their November 2014 meeting was that they got tired of cutting production and having American frackers and Russians et cetera grab market share.", "creator": { "@type": "Person", "name": "Gary Shilling" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/gary-shilling/i-said-earlier-2015-year-that-i-thought-we-d-get-to-10-or-20-bucks/", "about": { "@type": "Thing", "name": "Barrels" }, "@id": "https://sms4smile.com/quotes/gary-shilling/i-said-earlier-2015-year-that-i-thought-we-d-get-to-10-or-20-bucks/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg", "contentUrl": "https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg", "url": "https://sms4smile.com/quotes/i/66c/gary-shilling-27568_barrels_i-said-earlier-2015-year-that-i-thought_2695177.jpg", "width": 1080, "height": 1080, "caption": "“I said earlier [2015] year that I thought we'd get to 10 or 20 bucks [per barrel ] because that's the…” — Gary Shilling", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Gary Shilling", "item": "https://sms4smile.com/quotes/author/gary-shilling/" }, { "@type": "ListItem", "position": 4, "name": "I said earlier [2015] year that...", "item": "https://sms4smile.com/quotes/gary-shilling/i-said-earlier-2015-year-that-i-thought-we-d-get-to-10-or-20-bucks/" } ], "@id": "https://sms4smile.com/quotes/gary-shilling/i-said-earlier-2015-year-that-i-thought-we-d-get-to-10-or-20-bucks/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```