Community Forums

guglipm63 · 03-11-2012, 05:10 PM

Wow. So much going on here. The bottom line is that no matter what the price is, we need it to propel us down the road. If you have the money, you will pay that price. Bread, butter, milk etc used to be cheaper but we all have to eat, just as we all need to drive somewhere. Our fuel budget will dictate how far we go. The interesting thing is how much more oil and gas is being discovered as the price of crude has gone up. Wether it be a new pipeline, or the debate over the methods of extraction, sooner or later a price balance will have to be reached when there is an oil rig everywhere and the price becomes to high for people to pay for it.

Wanabee FTer · 03-11-2012, 05:10 PM

Since North Dakota will soon be the largest producer of crude oil in the US, does anyone think this will effect prices in the USA?

Ramblin · 03-11-2012, 05:13 PM

Quote:

Originally Posted by Wanabee FTer

Since North Dakota will soon be the largest producer of crude oil in the US, does anyone think this will effect prices in the USA?

Not a bit. Because the fine folks that own that oil will sell it on the world market.

Madame Boomer · 03-11-2012, 05:37 PM

Quote:

Originally Posted by guglipm63

The interesting thing is how much more oil and gas is being discovered as the price of crude has gone up. Wether it be a new pipeline, or the debate over the methods of extraction, sooner or later a price balance will have to be reached when there is an oil rig everywhere and the price becomes to high for people to pay for it.

If you Google "Hughes Rig Count", you'll see how U.S. exploration tracks crude oil prices. As the price of crude oil increases, exploration will increase as well, and vice versa.

It's interesting to see what's happened to the price of natural gas with the tremendous increases in production from the shale gas plays. Source - US Government Department of Energy, Energy Information Administration.

Rusty

P.S. - Oops. Posted on my wife's login!

guglipm63 · 03-11-2012, 05:42 PM

Quote:

Originally Posted by Madame Boomer

If you Google "Hughes Rig Count", you'll see how U.S. exploration tracks crude oil prices. As the price of crude oil increases, exploration will increase as well, and vice versa.

It's interesting to see what's happened to the price of natural gas with the tremendous increases in production from the shale gas plays. Source - US Government Department of Energy, Energy Information Administration.

Rusty

P.S. - Oops. Posted on my wife's login!

Several years ago nat gas was over $13. They drilled like crazy and now can't find any more places to store it and the price is about $2.50. Hopefully oil does the same

Wanabee FTer · 03-11-2012, 05:55 PM

Quote:

Originally Posted by guglipm63

Several years ago nat gas was over $13. They drilled like crazy and now can't find any more places to store it and the price is about $2.50. Hopefully oil does the same

Due to difficulties transporting and storing natural gas, this scenario will not be likely to happen with petroleum products.

CNG (compressed natural gas) technologies are improving, but still difficult to store and transport due to the high pressure containers needed to do this.

Gas and diesel are an easy sell on the world market.

iahsatcs · 03-11-2012, 06:20 PM

I just read today that several Pennsylvania refineries are for sale and one has already closed up. The others are expected to close also if no purchaser step forward. Seems the are losing money hand over fist in refining operations. Reason: They are designed to refine WTI crude not the higher sulfur crude that comes from the tars and shales. Were never upgraded to change over to another crude. End result: Higher prices for all of us.

Scott

rvjimmy · 03-11-2012, 06:22 PM

Don't worry gas and diesel will go way down in August or September, it's an election year who would want $7.00 gas hanging over their head for re-election. Remember you heard it here.

Lindsay Richards · 03-11-2012, 07:24 PM

Quote:

Because the fine folks that own that oil will sell it on the world market.

Just like the fine folks who sell corn, wheat, beef, pork, orange juice, and all other world commodities. Hard to believe anyone would think they would do any different. This is the way of the world. When there is a spring frost that damages the Russian wheat crop, the Kansas farmer benefits. Works the same for fossil fuels. 40% of the LA oil companies lost money last year according to congressional testimony.

Ramblin · 03-11-2012, 07:53 PM

Quote:

Originally Posted by Madame Boomer

P.S. - Oops. Posted on my wife's login!

You look faaabulous in pink, by the way.

Madame Boomer · 03-11-2012, 08:03 PM

Quote:

Originally Posted by Ramblin

You look faaabulous in pink, by the way.

Why, thank you!!

Rusty

Wanabee FTer · 03-11-2012, 08:21 PM

Quote:

Originally Posted by rvjimmy

Don't worry gas and diesel will go way down in August or September, it's an election year who would want $7.00 gas hanging over their head for re-election. Remember you heard it here.

So what you are saying is, if big oil doesn't like the current administration we are all in big trouble

bluepill · 03-11-2012, 08:28 PM

I hereby officially abstain from commenting on this topic.

Whew...............That took a lot of will power.

raycon9 · 03-12-2012, 08:40 AM

this thread is interesting reading.
and thank you Rusty for your insites.

there seems to be a recurring theme here, that big oil is largly responsible for high oil prices.

So i ask:
in 2008 why did big oil allow the oil price to fall from a peak of $150/brl
to $33??? they certainlly did a poor job of keeing the price up.

oh, wait, maybe there is something to this "supply and damand" stuff.