Well, frack me. There goes the lion's share of royalty checks from my wells. Most are gas wells so I will cross my fingers.
OPEC will not cut production
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Of course it MIGHT result in the development of lower cost fracking methods.
http://www.forbes.com/sites/johntobey/2014/11/29/opecs-gamesmanship-could-benefit-exxon-and-chevron/
Thoughts on this, do you share his opinion?
Thoughts on this, do you share his opinion?
The present low in gas prices has me honestly asking if the oil companies have overlooked something. I have also heard that they will continue to drop.
I gassed up our other vehicle for $2.51 at a Lukoil or Getty on Rt 21 McCarter Highway in Newark NJ. The one a block away from the town of Harrison. On Bridge St. I saw it for $2.49 a gallon in Bloomfield.
I gassed up our other vehicle for $2.51 at a Lukoil or Getty on Rt 21 McCarter Highway in Newark NJ. The one a block away from the town of Harrison. On Bridge St. I saw it for $2.49 a gallon in Bloomfield.
I also paid 2.49 in Raphine, VA yesterday on my way home from West Virginia. That's a low for me in recent years. I just wish we had a perfect world where prices were stable and reasonable all the time, but that will never happen.
Originally Posted By: JerryBob
I think the Saudis are quite content to undermine Iran and Russia...
The drop in crude means that airfares are going to drop, right?
Being diesel fuel is still close to $4.00 a gallon locally, I don't think the higher grade jet fuels will be coming down anytime soon either. I own more diesel engines than gas (counting equipment) and aside for the obvious personal reasons for wanting to see #2 prices drop to the levels of gasoline, it could be a real boost for the economy (think delivery, freight, transport, construction, agriculture, etc. The cost of fuel gets passed on to the consumer. Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
I think the Saudis are quite content to undermine Iran and Russia...
The drop in crude means that airfares are going to drop, right?
Being diesel fuel is still close to $4.00 a gallon locally, I don't think the higher grade jet fuels will be coming down anytime soon either. I own more diesel engines than gas (counting equipment) and aside for the obvious personal reasons for wanting to see #2 prices drop to the levels of gasoline, it could be a real boost for the economy (think delivery, freight, transport, construction, agriculture, etc. The cost of fuel gets passed on to the consumer. Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
Originally Posted By: jrmason
Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
I'm afraid that price slump just bankcrupts high cost production and oil exploration, and hits back with shortage and higher prices. Saudis love to play this game..
Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
I'm afraid that price slump just bankcrupts high cost production and oil exploration, and hits back with shortage and higher prices. Saudis love to play this game..
Originally Posted By: OneEyeJack
If the cost at the pump is going to drop too much the government can raise the tax. After all if you're using gasoline you must have a job or own a business and therefore you can pay more in taxes. That's the way the government shares your wealth. And with amnesty coming working people will have a lot more sharing to do. After all, those unfortunate people that will not work need your help. This drilling in North America has to be punished somehow or other.
You can bet there will be a push for higher federal gas taxes. Ray LaHood the ex transportation chief was saying that the other day. The tax hasn't been increased since the Clinton years and the roads and bridges are falling apart. The story said Pennsylvania alone needs $7MB of bridge improvements.
If the cost at the pump is going to drop too much the government can raise the tax. After all if you're using gasoline you must have a job or own a business and therefore you can pay more in taxes. That's the way the government shares your wealth. And with amnesty coming working people will have a lot more sharing to do. After all, those unfortunate people that will not work need your help. This drilling in North America has to be punished somehow or other.
You can bet there will be a push for higher federal gas taxes. Ray LaHood the ex transportation chief was saying that the other day. The tax hasn't been increased since the Clinton years and the roads and bridges are falling apart. The story said Pennsylvania alone needs $7MB of bridge improvements.
Originally Posted By: jrmason
Originally Posted By: JerryBob
I think the Saudis are quite content to undermine Iran and Russia...
The drop in crude means that airfares are going to drop, right?
Being diesel fuel is still close to $4.00 a gallon locally, I don't think the higher grade jet fuels will be coming down anytime soon either. I own more diesel engines than gas (counting equipment) and aside for the obvious personal reasons for wanting to see #2 prices drop to the levels of gasoline, it could be a real boost for the economy (think delivery, freight, transport, construction, agriculture, etc. The cost of fuel gets passed on to the consumer. Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
I would like to see the diesel go down. Use it for my heating. Currently here in central IL #1 diesel is $3.60 retail. Off road fuel would be $0.30 a gallon or so less.
Originally Posted By: JerryBob
I think the Saudis are quite content to undermine Iran and Russia...
The drop in crude means that airfares are going to drop, right?
Being diesel fuel is still close to $4.00 a gallon locally, I don't think the higher grade jet fuels will be coming down anytime soon either. I own more diesel engines than gas (counting equipment) and aside for the obvious personal reasons for wanting to see #2 prices drop to the levels of gasoline, it could be a real boost for the economy (think delivery, freight, transport, construction, agriculture, etc. The cost of fuel gets passed on to the consumer. Maybe it's wishful thinking, but sustained lower fuel prices could eventually be beneficial to us all. It wasn't too long ago when a gallon of #2 was within a few pennies of a gallon of gasoline.
I would like to see the diesel go down. Use it for my heating. Currently here in central IL #1 diesel is $3.60 retail. Off road fuel would be $0.30 a gallon or so less.
Originally Posted By: Nebroch
Price difference between gasoline and diesel is shrinking quickly in here. Gasoline oriented US refineries are running with cheap saudi oil, and this makes gasoline market price to drop?
Do we import Saudi oil?
Price difference between gasoline and diesel is shrinking quickly in here. Gasoline oriented US refineries are running with cheap saudi oil, and this makes gasoline market price to drop?
Do we import Saudi oil?
Originally Posted By: CT8
Do we import Saudi oil?
Yes
Quote:
Canada remained the largest exporter of total petroleum to the United States in September; exporting 3,541 thousand barrels per day. The second largest exporter of total petroleum was Saudi Arabia with 1,004 thousand barrels per day.
http://www.eia.gov/petroleum/imports/companylevel/
Do we import Saudi oil?
Yes
Quote:
Canada remained the largest exporter of total petroleum to the United States in September; exporting 3,541 thousand barrels per day. The second largest exporter of total petroleum was Saudi Arabia with 1,004 thousand barrels per day.
http://www.eia.gov/petroleum/imports/companylevel/
Don't worry...this won't last.
Originally Posted By: Doog
Don't worry...this won't last.
Based upon what's happening at the moment, I'd say it will last at least through the end of 2015 and maybe longer.
There was an article in this week's Economist in which one American fracker was quoted as stating that his company would do okay with fifty dollar oil, while OPEC producers outside of the Saudis and the Gulf states need much higher oil prices to survive but must still produce as much as they can to earn as much as they can.
There also remain substantial opportunities for improved production in Mexico, Russia, Iran, Iraq and a host of other areas.
It ain't over yet.
Don't worry...this won't last.
Based upon what's happening at the moment, I'd say it will last at least through the end of 2015 and maybe longer.
There was an article in this week's Economist in which one American fracker was quoted as stating that his company would do okay with fifty dollar oil, while OPEC producers outside of the Saudis and the Gulf states need much higher oil prices to survive but must still produce as much as they can to earn as much as they can.
There also remain substantial opportunities for improved production in Mexico, Russia, Iran, Iraq and a host of other areas.
It ain't over yet.
One more proof that the "precious oil" is not on the verge of running out as the masses were led to believe.
And because of stuff like this I'm a firm believer that we would be far better off using up as much oil and as fast as we possibly can. All this talk about saving it for future generations is pure nonsense as it will just create war and poverty for the 99% of the population, while giving absolute control for the 1% controlling the oil supply.
And because of stuff like this I'm a firm believer that we would be far better off using up as much oil and as fast as we possibly can. All this talk about saving it for future generations is pure nonsense as it will just create war and poverty for the 99% of the population, while giving absolute control for the 1% controlling the oil supply.
http://wolfstreet.com/2014/12/07/bloodbath-in-oil-patch-junk-bonds-leveraged-loans-defaults/
http://viennacapitalist.com/2014/10/30/thoughts-on-the-shale-boom/
It's interesting to see what happens to shale oil production in few months. Existing wells run dry quickly, and they need to raise cash to drill new...
http://viennacapitalist.com/2014/10/30/thoughts-on-the-shale-boom/
It's interesting to see what happens to shale oil production in few months. Existing wells run dry quickly, and they need to raise cash to drill new...
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Bank of America sees $50 oil as Opec dies
Quote:
The free market will now set the global cost of oil, leading to a new era of wild price swings and disorderly trading that benefits only the Mid-East petro-states with deepest pockets such as Saudi Arabia. If so, the weaker peripheral members such as Venezuela and Nigeria are being thrown to the wolves.
The bank said in its year-end report that at least 15pc of US shale producers are losing money at current prices, and more than half will be under water if US crude falls below $55. The high-cost producers in the Permian basin will be the first to “feel the pain” and may soon have to cut back on production.
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