Ginx snewx Posted March 7, 2022 Share Posted March 7, 2022 Imagine the balls to negotiate buying oil with Iran and Venezuela, because of green concerns, while we have the oil in the ground sitting read to be produced. Meanwhile instead if creating US jobs we pay dictators to kill people. There is absolutely no sense to this Administration's policies. Feckless 3 1 2 Link to comment Share on other sites More sharing options...
HoarfrostHubb Posted March 7, 2022 Author Share Posted March 7, 2022 Our domestic oil production isn't going up because the oil companies are betting the prices will come down... seems weird. They would have to invest in some capital to get the idle wells running again, and they don't see that as profiatble for now 2 Link to comment Share on other sites More sharing options...
Tolland Death Band Posted March 7, 2022 Share Posted March 7, 2022 19 minutes ago, Ginx snewx said: Imagine the balls to negotiate buying oil with Iran and Venezuela, because of green concerns, while we have the oil in the ground sitting read to be produced. Meanwhile instead if creating US jobs we pay dictators to kill people. There is absolutely no sense to this Administration's policies. Feckless It’s just stubbornness at this point. The other side can’t be proven right in any way 2 2 Link to comment Share on other sites More sharing options...
monadnocks Posted March 7, 2022 Share Posted March 7, 2022 1 hour ago, Hoth said: At some point high energy prices will create real demand destruction, but nobody can say when that will transpire. Take 2008. The economy was already in deep recession and the banking system was imploding and oil was nearing $150. It eventually imploded into the $30s. Anyway, I wouldn't expect EVs to be some kind of haven. Charging rates are often based on electricity produced by natural gas or oil. And take a look at the commodity price trends for many EV components. Going vertical. Battery packs are going to get miiiiighty pricey. Even something as basic as aluminum has already had pricing go up substantially over a year and I expect it to soar even more. Intellectually, it's going to be very interesting watching this all play out. As a consumer, it's going to change some things. As an investor, I wish I had more time to really inhale all the data and analysis. Link to comment Share on other sites More sharing options...
TauntonBlizzard2013 Posted March 7, 2022 Share Posted March 7, 2022 1 hour ago, RUNNAWAYICEBERG said: It’s the trading of oil on the markets that is out of control. Consumers get screwed, as always, while the fat cats get fatter…even off tragedy. Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations. 4 Link to comment Share on other sites More sharing options...
SouthCoastMA Posted March 7, 2022 Share Posted March 7, 2022 9 minutes ago, TauntonBlizzard2013 said: Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations. Yeah its like they magically purchased and swapped in those barrells to the tanks overnight. Aholes Link to comment Share on other sites More sharing options...
mreaves Posted March 7, 2022 Share Posted March 7, 2022 15 minutes ago, TauntonBlizzard2013 said: Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations. 5 minutes ago, SouthCoastMA said: Yeah its like they magically purchased and swapped in those barrells to the tanks overnight. Aholes My understanding is that they are pricing based on how much it will cost to purchase fuel to refill their tanks Link to comment Share on other sites More sharing options...
snowman21 Posted March 7, 2022 Share Posted March 7, 2022 Aren't oil companies sitting on nearly 10,000 leases covering millions of acres that they refuse to develop? Should the government hold the CEO of Exxon at gunpoint until they begin to drill more oil? If you are running an E&P business, would you rather oil at $40 a barrel or $150 (like after Katrina in 2005 dollars)? Which price makes your company more money? 1 Link to comment Share on other sites More sharing options...
ORH_wxman Posted March 7, 2022 Share Posted March 7, 2022 The price of crude oil will become self-correcting....as it gets more expensive, it incentivizes oil and gas companies to spend the money for new drilling. It sucks in the short term though when the price goes bonkers like it is right now. 2 Link to comment Share on other sites More sharing options...
TauntonBlizzard2013 Posted March 7, 2022 Share Posted March 7, 2022 3 minutes ago, ORH_wxman said: The price of crude oil will become self-correcting....as it gets more expensive, it incentivizes oil and gas companies to spend the money for new drilling. It sucks in the short term though when the price goes bonkers like it is right now. What is the price point you think we see a stark decrease in demand? Meaning people are actively going out of their way to limit car travel Link to comment Share on other sites More sharing options...
ORH_wxman Posted March 7, 2022 Share Posted March 7, 2022 4 minutes ago, TauntonBlizzard2013 said: What is the price point you think we see a stark decrease in demand? Meaning people are actively going out of their way to limit car travel Back in 2008, it was around 4-4.25 a gallon when it was noticeable in behavior changes, so probably something similar this time too except maybe a little more to account for inflation of income/wages since 2008. I'd guess when the national average hits 4.50-5.00, you'll start seeing changes. They are more visible in the summer when people travel than they would be in the spring. Link to comment Share on other sites More sharing options...
Hazey Posted March 7, 2022 Share Posted March 7, 2022 $6.67 gal here when you do the conversion. You guys are spoiled...lol Link to comment Share on other sites More sharing options...
RUNNAWAYICEBERG Posted March 7, 2022 Share Posted March 7, 2022 Just now, Hazey said: $6.67 gal here when you do the conversion. You guys are spoiled...lol “Biden’s fault.”…apparently. Link to comment Share on other sites More sharing options...
40/70 Benchmark Posted March 7, 2022 Share Posted March 7, 2022 15 minutes ago, TauntonBlizzard2013 said: What is the price point you think we see a stark decrease in demand? Meaning people are actively going out of their way to limit car travel Much like the pandemic, I will enjoy the benefit of reduced traffic. 1 Link to comment Share on other sites More sharing options...
HoarfrostHubb Posted March 7, 2022 Author Share Posted March 7, 2022 5 minutes ago, Hazey said: $6.67 gal here when you do the conversion. You guys are spoiled...lol It's that darned metric system again... Poutine is to blame!!! 2 Link to comment Share on other sites More sharing options...
ORH_wxman Posted March 7, 2022 Share Posted March 7, 2022 Canada pays about a 1.25 per gallon in taxes on their gasoline whereas the United States is more like 45-50 cents....Canada also gets most of their refined RBOB from the United States despite drilling a lot of their own oil (they send to to the US refineries), so they have to pay extra transportation costs which become larger when the price of crude oil is higher. 1 Link to comment Share on other sites More sharing options...
RUNNAWAYICEBERG Posted March 7, 2022 Share Posted March 7, 2022 47 minutes ago, TauntonBlizzard2013 said: Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations. Yup and look at shell. They bought a huge amount of Russian oil on the cheap yet their price at the pump has went up. The price in their tanks and gas stations didn’t increase plus they leveraged the down Russian market…so why the increase? They claim they will donate the extra profit to a humanitarian fund for Ukraine. Yea…Let’s see how that gets tracked. Link to comment Share on other sites More sharing options...
mreaves Posted March 7, 2022 Share Posted March 7, 2022 8 minutes ago, HoarfrostHubb said: It's that darned metric system again... Poutine is to blame!!! Vladimir Poutine? 3 Link to comment Share on other sites More sharing options...
HoarfrostHubb Posted March 7, 2022 Author Share Posted March 7, 2022 8 minutes ago, mreaves said: Vladimir Poutine? See what I did there? 3 Link to comment Share on other sites More sharing options...
SnoSki14 Posted March 7, 2022 Share Posted March 7, 2022 36 minutes ago, 40/70 Benchmark said: Much like the pandemic, I will enjoy the benefit of reduced traffic. That was a nice perk. 1 Link to comment Share on other sites More sharing options...
tamarack Posted March 7, 2022 Share Posted March 7, 2022 44 minutes ago, Hazey said: $6.67 gal here when you do the conversion. You guys are spoiled...lol $2.20/L CA? Link to comment Share on other sites More sharing options...
Hazey Posted March 7, 2022 Share Posted March 7, 2022 2 minutes ago, tamarack said: $2.20/L CA? $1.76/L 1us gal = 3.79 litres can 1.76 x 3.79 = $6.67 1 Link to comment Share on other sites More sharing options...
CoastalWx Posted March 7, 2022 Share Posted March 7, 2022 Getting answers to the question about how much prices would drop if we increased domestic production seems to get political. Is there a real estimate as to how much would drop? Link to comment Share on other sites More sharing options...
ORH_wxman Posted March 7, 2022 Share Posted March 7, 2022 2 minutes ago, CoastalWx said: Getting answers to the question about how much prices would drop if we increased domestic production seems to get political. Is there a real estimate as to how much would drop? It depends how much production increases. It's hard to just "turn on" production because it won't be immediate. We need to drill more and that takes some time. It would prob take 6-12 months to see differences. We actually have pretty good production right now as a result of the massive increase in fracking in the last 7-10 years (we tripled our domestic oil production between mid-2000s and 2018). The big drop in oil prices between 2013 and 2015 was much in part due to the big supply increase on the market due to US fracking. We haven't really expanded drilling though in the past 3-5 years. The low crude oil prices post-2014 (until recently) have made new drilling more cost-prohibitive. A lot of rigs that made good money when oil was $75 per barrel in 2014 became harder to make money on when crude oil dropped below $50 per barrel. So many of the oil companies didn't drill new wells when prices went down. They just continued to pump from existing wells drilled in the 2012-2015 period. You could see market prices drop though if an expected increase in production was signaled. Market forces often respond to expectations in addition to just current supply. 3 2 Link to comment Share on other sites More sharing options...
tamarack Posted March 7, 2022 Share Posted March 7, 2022 11 minutes ago, Hazey said: $1.76/L 1us gal = 3.79 litres can 1.76 x 3.79 = $6.67 Thanks. Looks like a bit above $5 US - I based the earlier attempt on $6.67 US. Link to comment Share on other sites More sharing options...
Damage In Tolland Posted March 7, 2022 Share Posted March 7, 2022 13 minutes ago, CoastalWx said: Getting answers to the question about how much prices would drop if we increased domestic production seems to get political. Is there a real estimate as to how much would drop? The entire thing is political though. If the election results were different .. there wouldn’t have been an invasion.. oil prices wouldn’t be anything like they are etc etc. It’s all traceable 4 6 1 Link to comment Share on other sites More sharing options...
CoastalWx Posted March 7, 2022 Share Posted March 7, 2022 1 minute ago, Damage In Tolland said: The entire thing is political though. If the election results were different .. there wouldn’t have been an invasion.. oil prices wouldn’t be anything like they are etc etc. It’s all traceable Beer? Link to comment Share on other sites More sharing options...
Damage In Tolland Posted March 7, 2022 Share Posted March 7, 2022 Just now, CoastalWx said: Beer? Not at all. It’s work time. Facts is facts . I’m not getting into politics here other than if Trump was in office Russia would never have pulled this 2 1 2 5 Link to comment Share on other sites More sharing options...
CoastalWx Posted March 7, 2022 Share Posted March 7, 2022 2 minutes ago, Damage In Tolland said: Not at all. It’s work time. Facts is facts . I’m not getting into politics here other than if Trump was in office Russia would never have pulled this LSD? 1 3 Link to comment Share on other sites More sharing options...
RUNNAWAYICEBERG Posted March 7, 2022 Share Posted March 7, 2022 7 minutes ago, Damage In Tolland said: Not at all. It’s work time. Facts is facts . I’m not getting into politics here other than if Trump was in office Russia would never have pulled this You are so far gone, your pro donnie maga’s need to sit this one out. Your boy thinks Putin is a genius and a peacekeeper, thought he is doing the right thing invading Ukraine lol…oh and the fraud election was rigged conspiracy that lead to fake patriots attacking the capital has been debunked over and over again. Let’s not get into it… 2 1 1 1 Link to comment Share on other sites More sharing options...
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