Will Oil Find a Bottom?

Float your own entity.

Somehow avoid the insider trading tag.

At least that way you would be able to explain some of the 'blips' on the graph and maybe (I didn't say this) contrive a few just to keep those monitoring your graph something to puzzle about. Now ... where did I put that film script again?!

"All crude is not the same and you can't (to the best of my knowledge) pump one type of crude one day and a different the next in the same line."

No, you can pump one kind of crude one HOUR and send another kind the next. You can do the same with refined oils/fuels.

They used to separate the different grades with 'pigs,' large spherical air bladders that would travel down the pipe between the batches (and since they were pressed firmly against the walls of the pipe, the rubber skins would 'squeal' all the way down the line). Nowadays, they've dispensed with the pigs unless it's absolutely nescessary, accepting that there will be a certain amount of 'intermix' at the border between batches. The intermix oil is sold to oil-burning plants and factories, who have furnaces that can handle a wide range of fuel types.

...

I was going to direct you to the Petroleum Planet exhibit at MSI in Chicago if you were in the area(1), but after a twelve-year run, that exhibit has been closed down to make way for the new Fabrication Lab exhibit.

Notes:

1) That's where I learned about the pigs, even used that info on the job, to design a system to clean a long air-transit pipe of plastic residue buildup.

I was thinking that the tar sands crude was kind of a special case where pipeline diameters were more critical or such. Possibly a viscosity issue?

I can't recall where I read the information, but the Canada crude was more particular when it comes to pipeline transport.

*(opens his mouth to say something about stopping when the tank is full and saving the 'extra' money, then 'get's the joke' mid-comment, sighing and looking for Alan Fundt)*

"Some days people are out to punk you, some days you get punk'd by walking into someone else's punchline by accident. If I'm getting caught like this, falling for other peoples sarcasm, I'd BETTER be getting a laugh track, even if I can't hear it in-universe."

You are not the only one to get caught. The local government just paid an arm and leg for bike racks ... and did not apply to the next level up state government for a 50:50 subsidy. There is a surplus of funds for such street furniture.

Anyway, I thanked the Council for not applying for a subsidy because then they would have to worry about (a) what to do with the surplus money from the bottom line reduced cost, or (b) getting twice as many bike racks and then having the extra worry about where to install the double number of bike racks. See life can get complicated!

One of the stainless steel bike racks in the shape of a bike is shown at the bottom of the entrance ramp ... and it is 'travelling away' from the local government office, a point I also reminded the council as they get amalgamated in around 24 weeks when the state government reduces Perth's local government councils from 31 to 16. I can't understand why they did not return my best wishes?!

And this morning, the IRAN / SAUDI ARABIA double OPEC act are now talking of less than $25 per barrel for maybe even 8 years. Can someone tell me how we can convert those fracking rigs to water drilling setups?

I would be astounded if oil dipped below $25 and stayed there for 8 years, even adjusting for inflation.

Let's face it. Oil prices always see-saw all over the map. Yes, there are periods of relative stability, but the overall definition for oil is - volatility.

The volatility is primarily due to world events and right now we are in a session of pretty chaotic world events, both economically and politically destabilizing.

I am thinking what we are seeing is an over-correction due to the pendulum effect and that oil will stabilize somewhere higher than its current value. I would not be surprised to see its minimum go lower than we have now, but even after it stabilizes the first world incident will probably shatter that slippery calm and send it spiking again.

For some reason I can't post a picture from the web, so here it is for your inconvenience...

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140722_oilprice1.jpg

As you say, it is a cyclic nature. By the way, your graph did make it to this forum, and much better representation that my text listing. Agree with your points. The Iran / Saudi $25 for 8 years was just a news item / comment this morning. Anyway, I am still rounding up old bath tubs to position on the truck for the bowser run. Not very practical mind you, but (tongue firmly in cheek), someone has to add some humour to what could be a serious shakeout (again).

:-)

Well, we will survive it and it will also give something for all those 'doomers' carrying those poster signs something to do.

"someone has to add some humour to what could be a serious shakeout (again)."

I thought *I* was the designated 'court jester' most of the time. Thanks tor sharing the load, those jinglebells on that floppy hat were beginning to drive me insane. (Well, more insane than usual.)

We with the elf-like floppy hats share a good answer/post ratio around 1 in 45 ... unlike some of our peers with the 1 in 15's etc .... ah ha the cost of a good laugh, often at our own expense. But every so often buried in our wit, is an absolute gem, a post pot of gold, so don't give up on the comic quota or I'll arrange for the guys in the white coats and the belt buckles on the back to pay us both a visit! Ding! Dong! Apparently someone wants me at the front door ....