Oil and Gass Prices?

[Freeborn]

It looks like oil and gas still has a ways to go before there will be a rebound. My thoughts are the Saudis will keep prices low until they see obvious evidence their competition significantly cuts production, shuts down wells and more importantly cuts investment.

Hard to say when it will bottom but I would not be surprised to see oil at less than 40 a barrel.

http://www.bloomberg.com/news/2015-01-09/why-opec-is-talking-oil-down-not-up-after-48-selloff.html

 

[Freeborn]

Gass, Fat fingers this morning. :oops:

 

[Jordan Selsor]

I wish we could cease oil importing and strictly use domestic. Tell them to stick their oil up their a$$.. Then again again a free market keeps things competitive. I got mixed emotions. We should be able to tap into our own oil at a much cheaper rate then shipped oil from overseas! But all our stupid regulations an insurance cost prolly to blame for that.

 

[wiscwhip]

From my limited ability to understand such things, OPEC will not make the same mistake it made in the 70's. They held back supply to keep prices high. Great short term strategy until you have such high prices that funding for innovation starts happening. Couldn't agree with you more Freeborn. They will "drive out" the guys that break even at $50/barrel production costs. Not that I would ever recommend listening to a fish idiot like myself, but the long term buy for oil (not at the head) could be quite lucrative.

But using that logic, once the oil price went back above that cost threshold, we could always turn the spigot back on. Those wells are drilled and aren't going anywhere, you may have to cut manpower back for a while, which sucks the high, hard one if your those guys, but it isn't like the wells and the technology are going anywhere. It seems we may have them by the ba!!s now either way. If they keep production where it is, we may have to turn the spigot off for a while, but you can bet the research and development for the extraction and refining process will go on and continue to improve. If OPEC wants to cut production to raise prices, they had better be careful to not lower it far enough to make it lucrative for us to turn the spigot back on or the price will fall again, which means prices should at least stabilize at a far lower rate than what they were 2 years ago. Also that cost threshold will become lower if we could get a full blown refinery out on the prairie somewhere or the Keystone were to get approved. I'm not sure If I'm for either of those or not, a lot of negatives to both choices, but if it did happen, we could produce more for less money, thus loosening the grasp of OPEC even further. I think we can play them like fiddles now and they know it, now we just need to bleed their a$$es dry of that crude so they have nothing but oppression and terrorists to offer to the world and we can leave those camel @^*&#%$ rot in their dried up sandbox.

 

[JackTerp]

I fear that the Keystone situation is a ruse. We do not have the distilling capacity to handle all the oil they claim is possible from it. We do, however, have the ability to ship all that oil overseas where it commands a far higher price and profit. I fear that the pipeline is not going to benefit the consumers in this country at all.

 

[Freeborn]

I fear that the Keystone situation is a ruse. We do not have the distilling capacity to handle all the oil they claim is possible from it. We do, however, have the ability to ship all that oil overseas where it commands a far higher price and profit. I fear that the pipeline is not going to benefit the consumers in this country at all.

Not true at all, prices are based on supply and demand and any increase in oil supply will lower the cost of oil per barrel. Canada's oil is no different then Bakken oil and look at what has occured with the Bakken coming online. Based on economics oil prices should settle around $70 but I fear politics will get involved and it could be higher.

Bring on Keystone, it will increase supply, lower costs and save everybody money. Its also a smart move from a national saftey standpoint, lets get away from middle east oil.

 

[JackTerp]

The issue is not about supply and demand. It is about who controls the supply. Nothing has ever been said about the final destination of the oil from Canada or from the Bakken fields. We simply do not have the refining capacity to handle it so it will be sold to China, India and anyone else to undercut the Opec and Venezuelan interests. We could have been buying our oil from Canada for many years yet "we" chose to buy it from the middle east instead, WHY? Because it suited corporate Americas needs at the time. They thought they could control the middle east forever. Now they find out they can't and they want to be able to put pressure on them with the only source of income they have. They have nothing else to offer and we know it. The only way to regain that control is to be able to under sell them and they will do it at the expense of the U.S. consumer.

 

[Freeborn]

I was always taught that the number one rule in natural resource consumption was to use your "neighbors" resources first. Is this not true?

That is probably true in the long run. Considering the condition of the average US citizen I think it would help the country. It would help the country be energy independent and stop sending money to the middle east. I would rather send money to or neighbors to the north then to Arabs in the middle east.

 

[wiscwhip]

I fear that the Keystone situation is a ruse. We do not have the distilling capacity to handle all the oil they claim is possible from it. We do, however, have the ability to ship all that oil overseas where it commands a far higher price and profit. I fear that the pipeline is not going to benefit the consumers in this country at all.

Which is why I suggested a full blown large refinery right in the Bakken oil field. It makes the most sense of any alternative. The problem is it makes too much sense, so they surely won't go that route. We have been sending truckload upon truckload of steel out to the oil field for upgrading all the existing facilities for almost 2 years now and we are bidding on multiple new large jobs out there as we speak, these oil prices may put a damper on that for a while, but the funding is already in place for much of the work, so they may decide to proceed either way?

 

[Freeborn]

Looks like were headed to $40 a barrel. Cheap gas for awhile.

http://www.bloomberg.com/news/2015-...0-oil-as-forecast-for-opec-cut-abandoned.html

 

[MoBuckChaser]

Looks like were headed to $40 a barrel. Cheap gas for awhile.

http://www.bloomberg.com/news/2015-...0-oil-as-forecast-for-opec-cut-abandoned.html

yep, that is not good! But just like any commodity that goes up and is over priced, it usually comes down hard and fast! I guess oil barons are as stupid as some farmers!;)

 

[wiscwhip]

I just got another bid request this morning for more upgrades at a refinery in Texas. The price hasn't dropped enough to cause them to back down on spending money to increase processing capacity at the refineries just yet. Gas went under $2 a gallon here in La Crosse for the first time this weekend. $1.99 on Saturday morning.

 

[j-bird]

Saw gas for $1.95 this AM - me Likey!

 

[wildfire]

$1.66 at costco today!

 

[ruskbucks]

Not true at all, prices are based on supply and demand and any increase in oil supply will lower the cost of oil per barrel. Canada's oil is no different then Bakken oil and look at what has occured with the Bakken coming online. Based on economics oil prices should settle around $70 but I fear politics will get involved and it could be higher.

Bring on Keystone, it will increase supply, lower costs and save everybody money. Its also a smart move from a national saftey standpoint, lets get away from middle east oil.

True, I saw that Warren Buffet owns the Canadian National Railway. He is supposed to make $30 a barrel shipping oil on rail to our refineries. Canadian National could make $1.3 billion less, due to the pipeline being built. Buffet is a good friend of somebody in D.C, maybe this is why it not being built. I think it will bring price down and create a lot of jobs.

 

[Freeborn]

True, I saw that Warren Buffet owns the Canadian National Railway. He is supposed to make $30 a barrel shipping oil on rail to our refineries. Canadian National could make $1.3 billion less, due to the pipeline being built. Buffet is a good friend of somebody in D.C, maybe this is why it not being built. I think it will bring price down and create a lot of jobs.

Yep, thought this myself. I also think the environmental groups have zero interest in cheap gas. Cheap gas gives everyone a raise and helps working people, whats wrong with that?

Hopefully Obama signs the bill if not maybe in a couple years.

 

[foggy]

I wish I needed gas in Phoenix.

 

[TMIL]

i paid 1.77 today.

 

[dipper]

Finay hit $1.99 here

 

[OkieKubota]

Diesel $2.39 per gallon for highway diesel here...