Oil Prices

[codgerbill]

I recieved an e-mail from a friend. It has to do with the Bakken oil field in the North Dakota/Montana area. If the report is true I am wondering why we have not heard much about it and why oil prices per barrel are remaining so high?
/newsroom/article.asp?ID=1911>;

[scenic route]

Originally Posted by codgerbill

I recieved an e-mail from a friend. It has to do with the Bakken oil field in the North Dakota/Montana area. If the report is true I am wondering why we have not heard much about it and why oil prices per barrel are remaining so high?
/newsroom/article.asp?ID=1911>;

Here ya go...USGS Release: 3 to 4.3 Billion Barrels of Technically Recoverable Oil Assessed in North Dakota and Montana’s Bakken Formation—25 Times More Than 1995 Estimate— (4/10/2008 2:25:36 PM).

Maybe the oil companies are waiting for it to become more profitable to extract the oil?? Bob

[CLIFFTALL]

And then it will be sold to the highest bidder. It will not lower our cost.

[JJH3rd]

Oil is an international commodity and prices are based on speculation. Financial institutions like Goldman Sachs "own" more oil and fuel products than the oil exploration & refining companies because they purchased the oil "futures". The reason fuel prices are what they are is because the prices is set to be just below the point where we cannot afford to buy it - in essence a captive market rather than an open market.

[chaunclm]

Bakken production will peak within a couple of hundred of thousand barrels of one million barrels of oil per day about 2016. This is wonderful. But we currently import over eight million barrels per day and use over eighteen million barrels each day. So you can see that it will not provide for our needs.

The oil produced from the Bakken is very high quality light sweet crude. Currently there is a shortage world wide of this oil. The world wide price of it is over $116.00 per barrel. Because of infrastructure constriction the price of Bakken oil is only $98.00 per barrel. However an old pipeline will soon (June 2012) be reversed which will cause the Bakken to rise to the world wide rate. You can expect to pay a good bit more this summer for gasoline and diesel.

The following is a accurate account of the Bakken potential.

"Each well that is drilled is thought to have approximately 500,000 barrels of recoverable oil with an initial production somewhere close to 1000 barrels per day. After only a few years, this production quickly tapers off to under 200 barrels per day and eventually to zero after about 25 years.
Development of The Bakken/Three Forks will eventually encompass up to eight wells drilled per 1280 acre spacing unit. That equates to 8 wells per 2 square miles, or the potential for 80,000 well sites if both the three forks and bakken are present over the entire 20,000 square miles. Harold Hamm of Continental Resources predicts somewhere around 50,000 wells will be drilled over the next two decades, and this is how: with 1280 acre spacing units utilizing mutli pad drilling."


"The peak of ND Bakken oil production is difficult to predict but some estimate it will be in the 2016-2017 range when the production out of this field is at its peak. However, more layers are being explored and this really could be just the beginning. The Tyler Formation, and The Alberta Bakken, which are in close proximity to The Bakken are picking up steam."


seekingalpha.com/article/311805-the-bakken-oilfield-real-oil-production-scenarios

[Wanabee FTer]

We will be lucky if gas/diesel only goes to 5 bucks a gallon this summer.

Price of commodities, ie fuel, oil, food, and gold are more of an economic indicator then what the fed says the dollar is worth.

[chaunclm]

JJH3rd

The futures market represents an exceedingly small percentage of the total oil market. Neither Exxon, Conoco, BP, Shell, Chevron, nor any other large oil companies participate in it.

[donandmax]

Originally Posted by Wanabee FTer

We will be lucky if gas/diesel only goes to 5 bucks a gallon this summer.

Price of commodities, ie fuel, oil, food, and gold are more of an economic indicator then what the fed says the dollar is worth.

Yup and our 42 mpg Toyota and motels are looking better everyday

[TDiGuy]

Its not the price of oil.... its the falling dollar value due to the government printing money causing inflation... Print money... dollar worth less... price is pegged to the dollar so it cost more on the international market.. the price of fuel has doubled since Obama was elected... price of green giant peas has gone from $.89 to $2.29.. why cause the cost of fuel has gone up and everthing uses fuel to make, transport... and the government says there is almost no inflation.... Ha.. arrrghhh..

[SRT]

Originally Posted by TDiGuy

Its not the price of oil.... its the falling dollar value due to the government printing money causing inflation... Print money... dollar worth less... price is pegged to the dollar so it cost more on the international market.. the price of fuel has doubled since Obama was elected... price of green giant peas has gone from $.89 to $2.29.. why cause the cost of fuel has gone up and everthing uses fuel to make, transport... and the government says there is almost no inflation.... Ha.. arrrghhh..

Right........

[Steve N Sal]

Originally Posted by Wanabee FTer

We will be lucky if gas/diesel only goes to 5 bucks a gallon this summer.

Price of commodities, ie fuel, oil, food, and gold are more of an economic indicator then what the fed says the dollar is worth.

The exact conversation that was going around the breakfast table this morning. They have us where they want us. We need to drive and they know it and to drive you need to buy fuel. Someone needs to make money. Pretty Sad state of affairs is all I can say.

[Hipshot]

If you can invest in energy mutual funds. I make more on energy mutual funds than my entire energy cost each year. I know everyone cannot do this, but it is about all we can do to offset our costs.

[RVNeophytes2]

Originally Posted by TDiGuy

the price of fuel has doubled since Obama was elected...

Rather than editorialize, I'll simply provide you a graph. Look at what happened, between 2000 and 2008, see what happened to the price of crude once the election results of 2008 became obvious.

[PyrateSilly]

Oil prices are speculation ONLY. If you think the current administration had anything to do with taking away the regulations against tying the oil prices to speculation you are wrong. It was a different one. Whether the last one or the one before is up for debate.
Oil refineries go down, prices go up. There was just a fire at one in CA. It was just the offices nothing wrong with the refineries itself but hey it's a problem so the speculators makes the prices go higher. The refineries switch from summer to winter fuel making and well the speculators make the prices go higher. Another country has a problem oh say like Greece and well the speculators make the prices go higher. Do you see a pattern here? It is the SPECULATORS that make the prices go higher, not the government. If you want the speculators to not have control anymore than those nasty pesky regulations should be put back into place. But hey, no one wants regulations do they?