Crashing Oil

Too much of a goo-d thing?

It certainly helps when you have plenty of gas. What?

Thank OPEC.

Frack the frackers.

Our barrels runneth over...

http://www.cbc.ca/news/business/oil-storage-tanks-filled-to-levels-not-seen-in-80-years-1.3190001

http://www.cnbc.com/2015/12/04/energy-companies-choose-storing-oil-over-selling-it-cheap.html

Yeah it may sound like a lot, but bear in mind, just here in the US we use nearly 20 mil barrels a day.....that's nearly 7 billion with a B barrels a year...a small ocean....changing this trend will not be fast and it won't be easy, in fact it may turn out to be very painful if we don't pick up the pace rather quickly I should think....

https://www.eia.gov/tools/faqs/faq.cfm?id=33&t=6

"The United States imported approximately 9 million barrels per day (MMb/d) of petroleum in 2014 from about 75 countries. Petroleum includes crude oil, natural gas plant liquids, liquefied refinery gases, refined petroleum products such as gasoline and diesel fuel, and biofuels including ethanol and biodiesel. In 2014, about 80% of gross petroleum imports were crude oil, and about 46% of the crude oil that was processed in U.S. refineries was imported.

The United States exported about 4 MMb/d of crude oil and petroleum products in 2014, resulting in net imports (imports minus exports) of about 5 MMb/d in 2014. Net imports accounted for 27% of the petroleum consumed in the United States, the lowest annual average since 1985.

The top five source countries of U.S. petroleum imports in 2014 were Canada, Saudi Arabia, Mexico, Venezuela, and Iraq. The country rankings vary based on gross petroleum imports or net petroleum imports (gross imports minus exports). "

http://www.eia.gov/tools/faqs/faq.cfm?id=727&t=6

Nearly 20% in the last 3 weeks....it's in freefall...

But on the plus side, maybe we are not sending so many dollars overseas to fund terrorism.

look for gas under 2 bucks in many places by feb

It's been under $2 here (SE US) for a few weeks.

fantastic!

I presume you're talking per US gallon there.

Here in Australia where I live we are still paying AUD 1.35/litre.

That converts to about USD 3.70/US gallon.

The UK price converts to about USD 6/USG (AUD 2.1/L), of which about USD 3.4 is tax (fuel duty and VAT) (if the Google and back of my envelope serve me well).

In Sydney it sitting at $1.09.

And they've had us believe that our prices are based on the Singapore buy price.

AUD?

Yep..._{sorry for not making that clear}

That's similar to here and we source our fuel from the same places. The bowser price reacts very quickly to the oil price here so...I think the price base is just as you've been told it's just that it still sucks if you are a bulk user.....but getting very better almost daily.

Paid US $1.86/ US Gal, last night. The lowest I've seen in quite a few years.

we hit $1.89 about 3 weeks ago, it shot up to about $1.98 this past week end.

Its coming down again to $1.90

Yeah, good times, eh? ;-)

The Orlando area is usually about 5 cents less /gal than the coast, where I live.

I forgot to mention that was in Wisconsin.

As far as good times,... in the stock market, the companies supporting the oil infrastructure, times are not so good., But I love filling my car up for about $30.00.

"in the stock market, the companies supporting the oil infrastructure, times are not so good., "

Quite true, but that is the way of things. Conversely, other companies are doing better, because the low price of crude/fuel, is reducing their operating costs. As well as companies who profit from the increased mobility of people driving more. Everything has to find a balance.

"But I love filling my car up for about $30.00."

Same here, I remember dropping $85, to fill my truck, in past years. Now staying below $40 is a beautiful thing.

It cycles... As bad as it is, more than likely it will get worse... It may soon be a good time to buy... If one can handle the roller coaster.

I sit in the middle of a still producing, but old, oil field. The refinery where gasoline is made is 30 miles away. They use the local oil, and some tanked in oil, for this process. We are still paying $2.35 per gallon. How many oil wells / refineries are within 30 miles of you, there in $1.90 / gallon territory?

They need to explain this to the 100000 residents within a 50 mile circle of this refinery, as they ALWAYS say it is high here due to transportation costs. Note this is not a state tax issue as residents down state, up to 175 miles from a refinery, are in the $2.00/gallon range.

The nearest refinery we have in Wisconsin is in the North in Superior. We have pipelines,

But that point you brought up is valid. In a 50 mile radius the price differential at times can be $0.40 different. (From the Highest to Lowest) And its not a gradual increase, it like a territorial line.

One town is $1.98/gallon, and another town 10 miles away its $1.85/gallon

Exactly - but what we have here is farther away equals cheaper. My home town is 160 miles to the south, so I wait at least 40 miles of driving before buying gasoline when going back home to visit. That's what I don't understand.

It comes down to, the price is controlled at these small gas stations at the main office of Mobil, BP, Shell. etc... with very little control at these small station. These stations do have some control, but the margin are so tight its not worth mentioning.

We are at $1.67 in Wichita, Ks. and I know there are areas lower than that.

Supply and demand. Allow the producers to do what they do best and free enterprise does the rest. Everyone will benefit because costs to produce and refine will normalize over time. Keep the stinking governments hands out of the process and let people do the work. Hold them accountable for their actions through existing laws but let them work.

Inexpensive; minimal loss of life, politically, a walk in the park..... driving down the price of oil appears as a good option for deflating the continual, thinly veiled threats from Russia.

Low oil prices will probably be around for a while, especially with more Iranian oil coming to market in 2016. Not really sure if the nuclear concessions to Iran to take the wind out of Russian sails really makes the world a safer place though.

I wonder what long term effect this will have.

Such as maintenance issues on refinery's, pipe lines and such..

I know of quite a bit of industries that are suffering because their own sales are down that supply the oil industry's infrastructure.

They may well go the way of rural rail infrastructure. Come back Dr. Beeching! All is forgiven!

As nobody wants the stuff, does this mean the atmosphere will be breathing a sigh of relief?

Not great for businesses that depend on the energy sector for revenue, like IHS.

Here is an interesting article from Dan Yergin from IHS...

http://www.cnbc.com/2015/12/01/oil-prices-the-party-is-over-commentary.html

Thank you.

To the jerk who voted me OT, in #3

"The decline turned into a collapse in November 2014, when OPEC made the historic decision not to cut output but, instead, let the market find its own price."

As I said, thank OPEC, frack the frackers!

"when OPEC made the historic decision not to cut output but, instead, let the market find its own price."

The real reality is,.. a lot of OPEC nations, needed the cash flow, so they decided to cut off its own nose in spite of their face.

^{As far as jerks,.... could you narrow that down a little. That's a wide paint brush you have. lol}

If the shoe fits,..........................

"To the jerk who voted me OT" seems rather specific to me.

...Steal it!!

(That was a sign over my grandpa's workbench in his shoe repair business.)

You're using that kram logic again.

You seem for some reason the believe that, "a lot of OPEC nations, needed the cash flow" matters.

That doesn't matter, at all. It's a poor stab at justifying an unjustifiable position.

The real fact is that, "the decline turned into a collapse in November 2014, when OPEC made the historic decision not to cut output"

The reason they decided not to cut production is not important or even relevant to the discussion.

You really miss kram don't you....

"The reason they decided not to cut production is not important or even relevant to the discussion."

lyn now you lost even yourself in your own logic,

Oil Production in an OPEC nation is a business, the business of business is to make money. That is what those decisions reflect.

And to keep the cash flow going, the oil flows, and the ones that remain standing wins.

That's the simplified explanation.

For the last time: http://www.cnbc.com/2015/12/01/oil-prices-the-party-is-over-commentary.html read this again. We're talking about the price of oil, not why OPEC chooses to keep pumping.

Pay attention!!!

The decline turned into a collapse in November 2014, when OPEC made the historic decision not to cut output but, instead, let the market find its own price.

Price of oil is do to excess Supply as to the Demand that's why.

With your copy and paste, you exceeded past boring and enter drudgery.

You should have your head thinned, cause you have the thickest head I've ever seen.

That is getting into details, and a very good point. I have always felt to keep our domestic and strategic reserves in tack and buy foreign oil at $3.00-$4.00 gallon it's still reasonable with out putting too much a strain on our economy.

As I said in the earlier post, the last one standing wins.

Oh, and btw, the earlier post was mark off topic, because some members take suppositories orally on a regular basis..

I hope your didn't do that on purpose to start something.

I just finish reading your post... You did do that intentionally. This may shut this thread down. Get back on topic, if you have an axe to grind with lyn, don't bring me into it.

Brings back memories of the gas wars back when I was still too young to be buying any....17cents 19 cents 21 cents, if you paid more you just weren't shopping around enough...Yes you could fill up your tank for a few bucks...no pollution worries, the pesticides really worked, and having a color tv was it....everybody smoked and drank and drove...Road trips were a family adventure and cars were cheap...

https://www.youtube.com/watch?v=hfm07gq7FPU

https://www.youtube.com/watch?v=9i8857WvWyQ

http://fiftiesweb.com/cars/chevrolet-55-59/

I recall that,... but that was a time where you had independent gas stations,... which are no more.

I remember when I was a student I could just about get 100 miles in my Ford for £1 (£0.33/UK gallon). Now it costs me a bit over £15 for 100 miles (different Ford, but about the same fuel consumption).

off topic.

a Neighbor of ours who was in his 80's-90's.... I was 20 myself at the time.

He always brought over for us to fix for him.... Welding and such.

One time he brought over a flat tire, we were baling all day, I just finished milking the cows, I was running on time for a baseball game I played in.

Well he stopped in to get a flat tire fix, I ask him, Can do it tomorrow? His reply was, why cant you do it tonight, so I told him that I would be running late.

After which he said, that "they should not give drivers licenses to anyone under 25 years of age, because they go out with no place to go and waste gas".

He was surprised when I agreed with him. I also added, "that they also should take away drivers licenses from anyone over 65 year old, for that same reason."

The look on his face was priceless, so I fix his tire right there.

Do you remember back when gasoline was $3.65....$4.25.....$4.65 per gallon........?

Do you remember the 2012 Presidential election primaries........?

How about.........:

Do you (those posing in here) also remember all the liberal progressive pundits/politicians balking at the impossible claim from Presidential Candidate (R) Michelle Bachman that she could get gasoline down to $2.00 per gallon........

For some, those memories call for another liberal (no pun intended) application of Preparation H......

The president, no matter who was in office, had nothing to do with the price of gas we have now, it was private industry, (fracking)

And for your information, Prep h had nothing to do with it, the point was packing sand.

and get back on topic

Come on, chaps. play nicely.