View Full Version : How much is gas where you are?
Pages :
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
[
17]
18
19
I had heard a few weeks ago that lowering the price per barrel of crude could reach the point where US oil is no longer profitable.
This article (Questions rise as oil prices drop)seems to suggest it is $70.
The domestic oil and gas industry can withstand the drop in crude to $80, the International Energy Agency has said, but it not clear how much pain U.S. shale producers could feel if OPEC keeps production levels unchanged, which could push prices even lower.
“I don’t think we’re in a lull right now that’s going to prevent companies from getting financing” for oil and gas projects, Moody’s Analytics senior economist Chris Lafakis said in an interview. “But when we start talking about $70 a barrel, that will present significant challenges.”
Read more: http://www.politico.com/story/2014/10/oil-prices-drop-112038.html#ixzz3Go9Ze4bG
Interesting that Russia, Iran and Venezuela all need $90/barrel and the Saudi's need $92 to break even.
ahhh, too bad :D
$3.31 for 87. That's a 20 cent drop in a month.
The price of oil is down around $75/barrel.
Ozarkian
11-17-14, 11:26 PM
$2.97 for 91 at Costco in Overland Park. First time I can remember it being below $3 in a long time.
indyfan31
11-18-14, 01:26 AM
$2.88 at Sams Club in So. Cal.
The local news reported that crude oil deliveries to refineries in the Bay Area that arrive by rail will increase from 1 million barrels in 2012 to 150 million barrels in 2016.
Since the Oil Trains of Doom cross the mountains on their journey, the Sierra Club is not pleased.
http://www.ktvu.com/story/27391091/2-investigates-safety-concerns-over-trains-carrying-volatile-crude-oil-to-bay-area
They didn't say how the increase in rail deliveries would affect the price of gasoline. Sure a neighborhood could get wiped out or a mountain river polluted, but what's in it for me? :gomer:
cameraman
11-18-14, 01:00 PM
The local news reported that crude oil deliveries to refineries in the Bay Area that arrive by rail will increase from 1 million barrels in 2012 to 150 million barrels in 2016.
Well environmentalists need to pick their poison, you can have pipelines or trains. Personally I think the pipeline opponents are insane because a pipeline is vastly safer than a train and they also pollute much less. Just because CSX can move a ton of freight nearly 450 miles on a single gallon of fuel doesn't change the fact that crude oil is heavy and any time you are talking about increasing the rail traffic by 50 million anything it will equate to a whole lot of unit trains.
"Crude by Rail" is a HUGE issue with emergency responders now. I've done several exercises in the past 2 months on the topic.
We are having 100+ car trains pass through our county quite regularly now. The problem from an emergency response standpoint is a terminology issue. The Bakken crude (any many others) is really a flammable liquid NOT your typical crude oil. That said, the railroads transport far more deadly chemicals every day, so there only real concern is the increased frequency.
And from some responder friends down south, they say CSX stands for "Crash, Smash, Explode" :rolleyes::saywhat:
The route through the mountains follows the Feather River Canyon in Northern California. If an oil train derails in there, it will be a huge mess. According to the news report, firefighters from communities around the refineries are trained to deal with a derailment, but many rural communities along the train's route are not. I'm sure it will be fine, though. :saywhat:
http://s15.postimg.org/wnxdgczor/Miille_Bakken1.jpg
http://s8.postimg.org/3oroxgy6d/6769ea38ad48685fc5fe5079355e1fcf.jpg
TravelGal
11-19-14, 08:16 PM
Love the train pics but to answer the question posed by the subject of the thread, it's $2.67 here in South Florida. :cool: That's about $.60 cheaper than in Southern California. No wonder we had a budget surplus. ;)
Tifosi24
11-19-14, 11:16 PM
I know a lot more about oil and pipeline by rail than I would ever expected, such are the expected joys of being a regulatory analyst for the government. Anyhow, the truck stop I drive by on the way to work is selling at $2.59 a gallon. The rest of time is at about $2.70-$2.75. The truck stop is by the refinery, so they must get a freshness discount or something.
stroker
11-23-14, 11:18 AM
$2.55 in mid-Missouri.
$2.69 here in Cbus...still there, still there, still there... Waiting for the $.20/gallon price by Wednesday. :saywhat:
indyfan31
11-24-14, 01:46 PM
$2.88 at Sams Club in So. Cal.
A week later, it's $2.79. I'm liking this trend, especially as my new truck approaches reality. :D
cameraman
11-24-14, 07:09 PM
Not sure if it is differing tax structures but regular gas is running $2.99 in Salt Lake.
stroker
11-24-14, 11:36 PM
Now $2.45 in mid-Missouri.
$2.69 here in Cbus...still there, still there, still there... Waiting for the $.20/gallon price by Wednesday. :saywhat:
Yup. As predicated...$2.89 today. :saywhat:
TKGAngel
11-25-14, 09:15 AM
$3.23 in B-lo.
OK, this is just getting silly. I ventured out of the cave yesterday for my visit with my daughters. I saw a report on NBC Nightly News about ga$ in the $2.30s and possibly moving below $2 very soon. Sweet, I thought, as I am getting close to time for a fill up. So as I trekked across Cbus from the NW side to the near east side, I took note of the ga$ prices. $2.79 was prevalent. :saywhat: When I came home I took the path through Powell (Dublin's neighbor), and it was $2.85. WTF? :irked: :confused:
$3.07 in NorCal. Hasn't been that cheap since 2010.
DagoFast
12-05-14, 01:52 PM
It just dropped to $2.45 here in AZ at my local Costco. Most stations around are now $2.50 or so. I'm easily saving over $15 per fill from when gas was at its highest ($4.09) till now. But it's still a far cry from my youth when I could fill my 1st gen Honda Civic up and get change back from a five. :)
Dropped to $2.55 today at the local Kroger. :eek:
stroker
12-06-14, 10:39 AM
~$2.30 in Mid-Mo
Bank of America sees $50 oil as Opec dies (http://www.telegraph.co.uk/finance/oilprices/11283875/Bank-of-America-sees-50-oil-as-Opec-dies.html)
Bank of America sees $50 oil as Opec dies (http://www.telegraph.co.uk/finance/oilprices/11283875/Bank-of-America-sees-50-oil-as-Opec-dies.html)
I've read reports forecasting $40. Game of chicken happening between the US and OPEC (Saudis).
Dropped to $2.45 here. $.40 in less than a week. :eek:
cameraman
12-10-14, 04:12 AM
Still about ~$2.75 here for Chevron/Shell/Phillips regular...
stroker
12-11-14, 04:40 PM
$2.15 in mid-Mo
http://www.eia.gov/tools/faqs/faq.cfm?id=24&t=10
How many gallons of gasoline does one barrel of oil make?
U.S. refineries produce about 19 gallons of motor gasoline from one barrel (42 gallons) of crude oil. The remainder of the barrel yields other refined products, such as distillate and residual fuel oils, jet fuel, and petroleum coke. Refinery yields of individual products vary from month to month as refiners focus operations to meet demand for different products and maximize profits.
So, if oil is is around $60/barrel and I can buy gas at $2.259, what am I missing here? The remainder must sell for substantially more than gasoline?
Breakdown of what's in one barrel of oil.
http://energyalmanac.ca.gov/gasoline/whats_in_barrel_oil.html
stroker
12-14-14, 01:51 PM
http://www.eia.gov/tools/faqs/faq.cfm?id=24&t=10
So, if oil is is around $60/barrel and I can buy gas at $2.259, what am I missing here? The remainder must sell for substantially more than gasoline?
Breakdown of what's in one barrel of oil.
http://energyalmanac.ca.gov/gasoline/whats_in_barrel_oil.html
I'm curious how much it costs to REFINE a barrel of oil...?
According to this (http://www.eia.gov/tools/faqs/faq.cfm?id=22&t=10) 14% of $3.69/gallon is refining and profit. That was when oil was at $104/barrel. Which means at $3.69, refining and profit only accounted for $.52/ gallon. I assume the actual cost of refining and to some extent profit would remain static regardless of the cost of crude oil.
OPEC isn't scared of $40 oil
(http://money.cnn.com/2014/12/14/news/economy/opec-oil-price/index.html?hpt=hp_t2)
Down to $2.89. Hope it drops some more, so that even with the new carbon tax the price will be below $3.
OPEC isn't scared of $40 oil
(http://money.cnn.com/2014/12/14/news/economy/opec-oil-price/index.html?hpt=hp_t2)
The Saudis are driving this game of chicken. OTOH, Putin is scared *****ess. I saw a tag line yesterday about being nervous about Putin being backed in a corner. Interest rates in Russian went from 10% to 17% the other day, and there are reports of runs on banks and stores.
The Saudis are driving this game of chicken. OTOH, Putin is scared *****ess. I saw a tag line yesterday about being nervous about Putin being backed in a corner. Interest rates in Russian went from 10% to 17% the other day, and there are reports of runs on banks and stores.
And to make matters worse Apple Stops Online Sales in Russia Over Ruble Fluctuations (https://www.bloomberg.com/news/2014-12-16/apple-stops-online-sales-in-russia-over-ruble-fluctuations.html) :gomer:
And to make matters worse Apple Stops Online Sales in Russia Over Ruble Fluctuations (https://www.bloomberg.com/news/2014-12-16/apple-stops-online-sales-in-russia-over-ruble-fluctuations.html) :gomer:
I'd be surprised that more companies are doing this. The sanctions have the Ruble hard, and its been crashing as a result.
Texas banks already seeing some problem borrowers as oil slides, regulator says (http://fuelfix.com/blog/2014/12/19/texas-banks-already-seeing-some-problem-borrowers-as-oil-slides-regulator-says/)
“If we get into an extended period of lower prices, it’s going to be a big danger for the banks,” said Gil Barker, Office of the Comptroller of the Currency’s district deputy comptroller for the Southern District, which includes Texas and a few surrounding states.
The oil-price crash of the 1980s still brings back painful memories for Texas bankers, who saw hundreds of financial institutions fail in the late 1980s during an economic dry spell after crude slid 50 percent in the first half of 1986. U.S. benchmark crude has fallen almost that much in the second half of this year.
stroker
12-22-14, 10:33 PM
Finally sub-$2.00 in mid-Mo
opinionated ow
12-22-14, 11:11 PM
In Sydney and Adelaide it's about 1.099AUD/L or about 3.40USD/USG. This is the cheapest since about 2004 I reckon
$2.09 was the lowest I saw tonight in Cbus during my venture out from the cave. $2.85 a month ago. :eek:
Tifosi24
12-23-14, 08:47 AM
Texas banks already seeing some problem borrowers as oil slides, regulator says (http://fuelfix.com/blog/2014/12/19/texas-banks-already-seeing-some-problem-borrowers-as-oil-slides-regulator-says/)
This whole situation is a big game of poker. If overall, shale, is more profitable than the Saudis believe, then they called our bluff and failed and we enjoy the benefit of an equilibrium price for oil probably in the $70ish per barrel range. On the other hand, if the Saudis are right, then we go back to the price levels we had earlier in the month.
Caught this article last night:
http://www.ft.com/intl/cms/s/0/63c7786c-89bc-11e4-8daa-00144feabdc0.html
:eek:
Opec will not cut production even if the price of oil falls to $20 a barrel, the cartel’s de facto leader said, spelling out a dramatic policy shift that will have far-reaching implications for the global energy industry.
In an unusually frank interview, Ali al-Naimi, the Saudi oil minister, tore up Opec’s traditional strategy of keeping prices high by limiting oil output and replaced it with a new policy of defending the cartel’s market share at all costs.
“It is not in the interest of Opec producers to cut their production, whatever the price is,” he told the Middle East Economic Survey. “Whether it goes down to $20, $40, $50, $60, it is irrelevant.”
He said the world may never see $100 a barrel oil again.
Low Oil Prices May Prove Costly for Community Banks (http://www.americanbanker.com/bankthink/low-oil-prices-may-prove-costly-for-community-banks-1071701-1.html?utm_medium=email&ET=americanbanker%3Ae97637%3Aa%3A&utm_campaign=-dec%2022%202014&utm_source=newsletter&st=email)
If oil hits $20/barrel, we will be in deep trouble. I believe TX and ND have lead in jobs created in this recovery. That will reverse. Might this be the next bubble?
Napoleon
12-23-14, 11:43 AM
If oil hits $20/barrel, we will be in deep trouble.
Huh? In the US more people benefit from having low oil and gas prices then do not.
http://www.vox.com/2014/12/23/7438379/effect-oil-prices-economy
$2.01 on the way into dtown Cbus this AM.
Huh? In the US more people benefit from having low oil and gas prices then do not.
http://www.vox.com/2014/12/23/7438379/effect-oil-prices-economy
I'm no economist but I can almost guarantee that if oil continues to drop at some point there will be considerable layoffs in those states. Oil exploration on ND is already reduced. That will eventually reduce hiring. Since Texas has lead the nation in job creation, we could very well be back in to a recession. Not being an alarmist, but it is a possibility.
An amazing chart of an amazing job-creating state; we owe a debt of gratitude to ‘Saudi Texas’ and the shale boom (http://www.aei.org/publication/822253/)
Texas alone has out paced the rest of the nation.
Insomniac
12-23-14, 12:17 PM
I'm no economist but I can almost guarantee that if oil continues to drop at some point there will be considerable layoffs in those states. Oil exploration on ND is already reduced. That will eventually reduce hiring. Since Texas has lead the nation in job creation, we could very well be back in to a recession. Not being an alarmist, but it is a possibility.
An amazing chart of an amazing job-creating state; we owe a debt of gratitude to ‘Saudi Texas’ and the shale boom (http://www.aei.org/publication/822253/)
Texas alone has out paced the rest of the nation.
It would be nice if that article actually had a # of oil jobs in it.
Insomniac
12-23-14, 12:19 PM
Huh? In the US more people benefit from having low oil and gas prices then do not.
http://www.vox.com/2014/12/23/7438379/effect-oil-prices-economy
That's why I didn't get why the markets were dropping as oil fell. A LOT more companies benefit from low energy prices than are hurt by them. More money in consumer pockets usually means more consumer spending as well.
Napoleon
12-23-14, 01:15 PM
I'm no economist but I can almost guarantee that if oil continues to drop at some point there will be considerable layoffs in those states.
No doubt about it, but at the same time it is also putting money in peoples pocket and its pretty well known that the vast majority of people will spent it, or nearly all of it. That will result in increased economic activity and hiring. The thing though is it will be defuse over a bunch of different economic areas (housing, appliance, travel, transportation, etc) so it is not as easy to point at some boom town in North Dakota and say it is a result of it. Note also it means more money is staying in country.
Tifosi24
12-23-14, 01:19 PM
That's why I didn't get why the markets were dropping as oil fell. A LOT more companies benefit from low energy prices than are hurt by them. More money in consumer pockets usually means more consumer spending as well.
The markets were dropping because the energy sector stocks were being hit hard because all their fundamentals assumed high prices. The collapse in prices may impact growth for North Dakota and Texas, but on a whole the US will benefit from the lower energy prices. A classic case in point is the fundamental change in the natural gas markets, some folks were harmed by the decrease in price, but the new normal we have been experiencing has been a driving factor in keeping manufacturing alive in many parts of the States. Further, I don't have the link handy, but the recent energy forecast discussion from BofA illustrates this point. In their estimation, if these low prices continue over a more extended period of time, it could be a net benefit to the global economy of $1 Trillion, but as we all know, life, and the economy, is not a zero sum game.
North Dakota is cutting back rig counts, but it is too soon to tell if this is seasonal or structural, because there is always a decrease in rig counts during winter. It is also important to remember that many of the new rigs were moving into less profitable areas, and my general feeling is there could be a decrease in Bakken production, but keep in mind that even if you lost 30% of production, that is still hundreds of thousands of barrels more than what the region produced even a few years ago. Absolute rig count can also be misleading, because U.S. natural gas rig counts decreased significantly after Katrina and never recovered, but with shale developments, total production, and production per rig, is now higher.
I'm concerned about the domino effect if oil prices fall to the point where domestic oil is no longer profitable to pump/extract. Layoffs are first, then small companies that service the oil industry are affected, community banks are impacted (mortgage and commercial loan defaults), then larger suppliers begin to feel the impact, etc. etc. etc. It ripples through out an ever increasing area. Yes, all of us will save some money at the pump but specific industries and geographic areas will suffer. At what cost/barrel would the US oil industry essentially shut down? There are some links I posted over the past few months that certainly suggest that we now may below what is considered profitable. We're in far better shape that other oil producing countries like Russia, or the Saudis or Venezuela. But if OPEC wants to play chicken they certainly can impact us all.
We should be seeing air fares dropping now because of lower fuel prices, right? :shakehead:
We should be seeing air fares dropping now because of lower fuel prices, right? :shakehead:
Buy airline stock. They have been performing better than they have for years. Which isn't saying much.
We should be seeing air fares dropping now because of lower fuel prices, right? :shakehead:
Yeah, right. Of course, SWA may getting screwed since they buy fuel futures. :( I try to fly SWA whenever possible so that I am treated like a human and not an airline ATM machine. I booked a flight on US Air to Hilton Head back in June. The cost for bags and a seat selection was almost 1/2 the cost of the air fare. :irked: Then they cancelled my return flight ~1 hour before I was supposed to head to the airport in HHH. :flaming: I had my parents bring my bags back with them when they drove up to Cbus in July. :D
cameraman
12-23-14, 03:32 PM
Could be worse, I just saw a tweeted photo from someone on a SWA flight at LaGuardia looking out the window at the pieces of wing sitting on the tarmac after being clipped by a taxing AA plane. Nothing like having your Christmas Eve Eve's flight cancelled after everyone has boarded...
Could be worse, I just saw a tweeted photo from someone on a SWA flight at LaGuardia looking out the window at the pieces of wing sitting on the tarmac after being clipped by a taxing AA plane. Nothing like having your Christmas Eve Eve's flight cancelled after everyone has boarded...
SWA ain't perfect by any means...just the tallest dwarf. Back in '06 I had to drive the family to OCNJ for vacation. Our youngest was just hatched in June, so I ponied up for an extra week for the Mrs. and girls since she was on FMLA (holy **** was it hot that summer). Anyway, I had to drive them there, fly back-and-forth, and then drive them back. I took extra clothes/laundry back with me on my return flight. Bag overweight. Removed clothes from the ~500 lb. suitcase and stick it in my carry on tote bag. :saywhat: :shakehead:
Yeah, right. Of course, SWA may getting screwed since they buy fuel futures. :( I try to fly SWA whenever possible so that I am treated like a human and not an airline ATM machine. I booked a flight on US Air to Hilton Head back in June. The cost for bags and a seat selection was almost 1/2 the cost of the air fare. :irked: Then they cancelled my return flight ~1 hour before I was supposed to head to the airport in HHH. :flaming: I had my parents bring my bags back with them when they drove up to Cbus in July. :D
I've been flying United a lot lately. There have been a few times that after figuring in paying extra for leg room and baggage it didn't cost much more to go first class. So I did. :D
I've been flying United a lot lately. There have been a few times that after figuring in paying extra for leg room and baggage it didn't cost much more to go first class. So I did. :D
Flying first class into or out of CMH == extra bag of peanuts. :saywhat: Sometimes I have to get the prop started. :gomer:
Flying first class into or out of CMH == extra bag of peanuts. :saywhat: Sometimes I have to get the prop started. :gomer:
Pretty slim pickings from Colorado Springs as well unless I go through Denver.
Insomniac
12-23-14, 04:30 PM
The markets were dropping because the energy sector stocks were being hit hard because all their fundamentals assumed high prices.
It wasn't just energy stocks falling. They aren't weighted enough to impact the markets as much as they moved. This isn't news, but fundamentals don't drive the markets. People just attribute the gain/loss to something. It seems crazy that computers control the markets, so I wonder what really is? (A discussion for another time I suppose.)
Insomniac
12-23-14, 04:33 PM
We should be seeing air fares dropping now because of lower fuel prices, right? :shakehead:
But free markets dictate they should! Idealists. :)
I go with Delta when I can. Wichita has very little competition, and if they do, it's not apparent until someone drops a route.
indyfan31
12-23-14, 07:52 PM
Anyway . . . . . $2.27/gal at a Sams Club in the O.C.
Insomniac
12-23-14, 08:02 PM
I'm concerned about the domino effect if oil prices fall to the point where domestic oil is no longer profitable to pump/extract. Layoffs are first, then small companies that service the oil industry are affected, community banks are impacted (mortgage and commercial loan defaults), then larger suppliers begin to feel the impact, etc. etc. etc. It ripples through out an ever increasing area. Yes, all of us will save some money at the pump but specific industries and geographic areas will suffer. At what cost/barrel would the US oil industry essentially shut down? There are some links I posted over the past few months that certainly suggest that we now may below what is considered profitable. We're in far better shape that other oil producing countries like Russia, or the Saudis or Venezuela. But if OPEC wants to play chicken they certainly can impact us all.
An article with some numbers: http://www.cnbc.com/id/102292094
I've mostly learned, no one can really predict what will happen. The people who predicted wrong don't mention it and the people who didn't make sure you know they predicted it.
How the oil price plunge threatens Caterpillar's recovery (http://www.chicagobusiness.com/article/20141224/NEWS05/141229942/how-the-oil-price-plunge-threatens-caterpillars-recovery)
Caterpillar Inc., already battered by a slump in demand for its mining machinery, faces slowing sales of compressors, pumps and gas turbines as oil companies reduce spending.
The impact will be felt by Caterpillar in early 2015 as drillers cut back and exploration declines, Chairman and Chief Executive Officer Doug Oberhelman told Bloomberg Television in a Dec. 22 interview.
While Caterpillar forecast in October that sales will be flat to slightly up in 2015, that view might now be optimistic given the decline in crude prices in the past two months, Sameer Rathod, an analyst at Macquarie Group Ltd., said in a Dec. 16 report.
the ripples begin...
stroker
12-27-14, 11:14 PM
sub $1.90 mid-MO...
How low will oil fall? $30 is possible (http://money.cnn.com/2014/12/31/investing/crude-oil-52-dollars-even-lower/index.html?hpt=hp_t2)
Oil took another hit Wednesday, sinking below $53 to a level last seen during the Great Recession. It's hard to recall that crude oil traded for over $100 a barrel as recently as July.
WickerBill
12-31-14, 03:47 PM
$1.79 on the southside of Indy. Makes my right foot heavier just thinking about it.
Widely it's available for $1.89 here. Note my previous post that it was $2.89 here a week or so before Thxgiving. Putin is puckering.
2.65 in NorCal. Did not make it below $2 before the first of the year.
Widely it's available for $1.89 here. Note my previous post that it was $2.89 here a week or so before Thxgiving. Putin is puckering.
Putin has the answer, medicate the masses.
Russia slashing vodka prices as economy reels
http://money.cnn.com/2014/12/31/news/economy/russia-vodka-putin/
Sorry can't figure out how to link on Tapatalk
Putin has the answer, medicate the masses.
Russia slashing vodka prices as economy reels
http://money.cnn.com/2014/12/31/news/economy/russia-vodka-putin/
Sorry can't figure out how to link on Tapatalk
I thought that was SOP anyway? :gomer: ;)
Insomniac
01-01-15, 04:31 PM
Putin has the answer, medicate the masses.
Russia slashing vodka prices as economy reels
http://money.cnn.com/2014/12/31/news/economy/russia-vodka-putin/
Sorry can't figure out how to link on Tapatalk
That and blame the USA seem to work.
Sitting at about $tree fiddy right nah.
In 2015, a state energy tax will add 16 to 70 cents per gallon.
No one knows for sure how much. very un-dude. :thumbdown:
2 cents. That's how much the price increased due to California's new cap and trade system for carbon offsets.
http://www.sacbee.com/news/business/article5365401.html
Much smaller than the predictions. Just have to wait and see if it stays that small.
RaceGrrl
01-06-15, 01:37 PM
726
$1.78 per gal, free with fuel perks and still had $0.30 per gallon remaining towards my next fill up. :thumbup:
Venezuela scurrying to cozy up to Iran and China. 96 % of their eggs in ONE basket with 63% inflation. Nancy suggesting NOW is the time to RAISE the gas tax! Shi*can the pipeline too, I suppose. (Just THINK of how many bridges we can fix with THAT bonanza! We can just lower it later. Yeah, right.:irked:)
stroker
01-10-15, 12:22 PM
$1.65 in mid-Mo...
Saudi prince: $100-a-barrel oil 'never' again (http://www.usatoday.com/story/money/columnist/bartiromo/2015/01/11/bartiromo-saudi-prince-alwaleed-oil-100-barrel/21484911/)
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
The interview follows at the link
How OPEC Weaponized the Price of Oil Against U.S. Drillers (http://www.bloomberg.com/news/2015-01-09/why-opec-is-talking-oil-down-not-up-after-48-selloff.html)
OPEC won’t reverse course even if oil prices fall as low as $20 a barrel or non-OPEC countries offer to help with production cuts, Saudi Arabian Oil Minister Ali Al-Naimi said in an interview with the Middle East Economic Survey on Dec. 21.
This is war, an economic war. There will be losers, who?
How OPEC Weaponized the Price of Oil Against U.S. Drillers (http://www.bloomberg.com/news/2015-01-09/why-opec-is-talking-oil-down-not-up-after-48-selloff.html)
This is war, an economic war. There will be losers, who?
The USA for one, and Texas in particular, if it is no longer economical to produce our own oil.
cameraman
01-11-15, 05:46 PM
The USA for one, and Texas in particular, if it is no longer economical to produce our own oil.
If the Saudis want to sell us all their crude at $20 a barrel, well all of our $70 shale oil will still be there after their wells run dry.
If the Saudis want to sell us all their crude at $20 a barrel, well all of our $70 shale oil will still be there after their wells run dry.
The short term pain could be significant. Don't know if you've been through Houston lately but there has been a big building boon going on for the last ten+ years. Didn't slow down much during the recession either. Vast majority related to energy.
Napoleon
01-12-15, 04:07 PM
[QUOTE=SteveH;329845]Saudi prince: $100-a-barrel oil 'never' again[/URL]
Oh good God. Only a complete idiot could say that. I would not even waste my time reading an interview with someone who could say something that stupid. If every country on the planet went full Manhattan Project on trying to convert to renewable resources that wouldn't even keep oil from hitting $100 a barrel again, and as things are if there was some way to bet it, I bet it is just as likely that 5 years out oil is $200 a barrel as under $100.
In case someone missed it, oil is a finite resource.
Napoleon
01-12-15, 04:08 PM
If the Saudis want to sell us all their crude at $20 a barrel, well all of our $70 shale oil will still be there after their wells run dry.
Yeah we will still have our oil in the ground then the Saudis can pay us $100 a barrel when we charge them for it.
cameraman
01-12-15, 04:14 PM
In case someone missed it, oil is a finite resource.
Turns out if you are willing to thrash your aquifers with reckless abandon there is still a whole lot of oil out there.
Given the extreme air pollution in the western mountain valley cities any technology that reduces the amount of gas burned is absolutely necessary and it doesn't matter what oil costs. When your air is regularly worse than Beijing you really need to get on the problem.:saywhat:
Turns out if you are willing to thrash your aquifers with reckless abandon there is still a whole lot of oil out there.
Given the extreme air pollution in the western mountain valley cities any technology that reduces the amount of gas burned is absolutely necessary and it doesn't matter what oil costs. When your air is regularly worse than Beijing you really need to get on the problem.:saywhat:
Air quality in the US has been improving constantly for decades. Most air quality problems these days are regional.
http://www.epa.gov/airtrends/images/y80_13.png
Air quality in the US has been improving constantly for decades. Most air quality problems these days are regional.
http://www.epa.gov/airtrends/images/y80_13.png
I'd love to see that graph scaled to population being the X axis
cameraman
01-13-15, 12:09 AM
Air quality in the US has been improving constantly for decades. Most air quality problems these days are regional.
Given the extreme air pollution in the western mountain valley cities any technology
Which is exactly what I said.
Bumped up here to $2.09...up $.20 this past week. Oil still falling. :saywhat:
Tifosi24
01-16-15, 03:12 PM
Bumped up here to $2.09...up $.20 this past week. Oil still falling. :saywhat:
Did the same thing here. Based on my work on these topics, my best guess would be refinery work and shutdowns in Chicago are the cause. The Chicago market is the price setter in the Midwest, so as they go we go.
$2.55 for 87.
The Arco stations where you pay cash before pumping are very popular. They can be up to 20 cents cheaper per gallon.
Did the same thing here. Based on my work on these topics, my best guess would be refinery work and shutdowns in Chicago are the cause. The Chicago market is the price setter in the Midwest, so as they go we go.
Yes, but also around here, Chitown takes gas from the refineries in oHIo when they run low. @ least according the local news sources in Cbus.
TKGAngel
01-17-15, 01:57 PM
$2.50 here.
God bless NYS taxes and our status "at the end of the pipe." :rolleyes:
cameraman
01-17-15, 02:13 PM
$1.87 for Shell regular in Salt Lake.
TravelGal
01-17-15, 06:14 PM
Just saw $1.99 here in Clearwater. First time I've noticed it under $2.
Oil company Baker Hughes cuts 7,000 jobs
(http://money.cnn.com/2015/01/20/investing/oil-fall-baker-hughes-cuts-7000-jobs/index.html)
Baker Hughes is hardly alone in cutting jobs. Recently, rival Schlumberger (SLB) announced plans to lay off 9,000 workers and Civeo (CVEO), a provider of housing for oil workers, said it would cut 1,000 jobs.
Meanwhile, oil prices continue to retreat. Crude oil plunged another 5% on Tuesday to $46.73 a barrel. The price of gas has now dropped below $2 a gallon at over half the country's gas stations.
TravelGal
01-21-15, 09:43 AM
Target is cutting nearly 18,000 jobs so it's not just oil. I know, irrelevant perhaps but as sorry as I feel about the shrinking industry, overall low oil helps consumers. Not those folks, unfortunately, and I feel desperately sorry for them, having gone through a traumatic layoff in my life.
I heard yesterday that regular was $1.79 in Bradenton, FL. :eek:
cameraman
01-21-15, 02:26 PM
Shell regular was $1.779 is SLC this morning.
Tifosi24
01-21-15, 03:53 PM
Target is cutting nearly 18,000 jobs so it's not just oil. I know, irrelevant perhaps but as sorry as I feel about the shrinking industry, overall low oil helps consumers. Not those folks, unfortunately, and I feel desperately sorry for them, having gone through a traumatic layoff in my life.
I heard yesterday that regular was $1.79 in Bradenton, FL. :eek:
OT, but the Target job cuts are related to their disastrous foray into the Canadian market. Who knew our brothers to the North don't like a company based in South Ontario (i.e., Minnesota).
Gas prices staying steady around $2 a gallon in my part of town. Chicago needs to get their refiners back on line.
DagoFast
01-21-15, 11:44 PM
I paid $1.739 for regular at Costco yesterday in Phoenix for the Elantra. It took a shade under 9 gallons to fill the tank for a whopping total of $15.62 It will probably be in the buck sixty range by next week.
Our eldest moved out to start at ASU last week so we fired up my trusty old '88 Chevy pickup to move her. And since she left piles of crap in her room that she doesn't want, I've been doing some spring cleaning, running boxes of donations to Salvation Army and a bit of yard work just because the weather is so nice. Gonna run the tank down and fill it while prices are low. It doesn't get driven much anymore unless there is a need. According to the Car Care app on my phone, the last 2 fills were on 7 Nov 2014 at $2.679 and before that 06 May 2014 $3.539 that was an $87.41 dollar fill up. I don't think I'll cry this time! :)
It’s something of a miracle that gas is only $2 per gallon and cheaper than any other liquid consumers buy (http://www.aei.org/publication/something-miracle-gas-2-per-gallon-cheaper-liquid-consumers-buy/)
Bottom Line: When gasoline is the cheapest liquid you buy (except maybe for some bottled water), as the list above illustrates, you know that gasoline is a real bargain at $2, just as it would be at $4! It’s something of a miracle and an amazing blessing that gasoline is so cheap, and something we should all stop and appreciate the next time we stop at the pump and fill up our cars with one of the cheapest consumer liquids on the planet, perhaps while drinking some $28 per gallon Red Bull!
cameraman
01-22-15, 12:20 PM
I think if someone were to drink a gallon of Red Bull they might easily die....
Powered by vBulletin® Version 4.2.5 Copyright © 2024 vBulletin Solutions Inc. All rights reserved.