Posted on 11/14/2014 2:28:23 AM PST by TigerLikesRooster
Crude-oil prices continue to slide
By Eric Yep
Published: Nov 14, 2014 3:22 a.m. ET
Crude-oil futures continued to slide on Friday after sharp overnight losses that traders say has reinforced bearish market sentiment and potentially set the stage for further declines.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December CLZ4, +0.19% traded at $73.45 a barrel, down 76 cents, or 1.1%. January Brent LCOF5, +1.24% crude on London’s ICE Futures exchange rose 61 cents to $78.10 a barrel.
(Excerpt) Read more at marketwatch.com ...
Just keep in mind, it is a lot more than oil prices moving the world economies. The reason oil prices and consumption values are so hard to predict is there are too many different things effecting them.
I'm just excited that their #1 best customer is a country with mafia business practices and 1.5 billion expendable people to enforce them. Not gonna be a good decade for towel heads.
It’s even worse while riding in a car going over bumps trying to type on a cell phone.
Goberment should stay out of the way and allow a holiday from taxes and regulations.
Lower prices will slow drilling, but existing wells will continue to produce.
National security can be a justification for price supports in certain circumstances, but that is not currently necessary. As others have said, reducing government regulation would lower the cost of doing business, and should be our priority.
But by cutting prices will cause the economy to improve ( we hope ) therefore demand will rise, therefore the price for oil will rise, therefore more fracking will continue.
The Saudi’s are painted into a corner.
I am sure oil is down quite a bit in Euros. Though the Euro has lost ground against the USD.
What is the gap now between American benchmark crude and the European? Last I looked it was 25$
**** seems has narrowed quite a bit:
http://www.ft.com/cms/s/0/63ba1380-4492-11e4-ab0c-00144feabdc0.html#ixzz3J4rceokJ
The Brent premium to West Texas Intermediate fell to a low of $3.74 on Thursday, approaching the $3.26 reached in April, which – adjusted for the volatility seen when monthly contracts expire – was the weakest since September 2013.
The major difference between the two was the pipeline bottleneck getting oil out of landlocked Cushing, Oklahoma. The two benchmarks used to run together. Once the US interior started producing more oil than the pipelines could more, they spread apart. Now that several more pipelines are carrying oil out of Cushing, the prices have run back closer together.
We’ve become so inured to the concept of government intervening, that even FReepers want it.
This thread makes me especially grateful for what the Founders gave us - small government -if you can keep it. They recognized that humans love to meddle and control. Don’t give them the chance.
“At a rate of 4,000 wells a year and assuming 60-acre spacing, the industry consumes 0.24 million acres a year. At that pace, the current sweet spot will be consumed in the next four to five years. The less economic prime area of the shale has closer to 18 years of inventory remaining.
However, the economics of wells are driven by peak rate, liquids content, and decline curve.”
Guess what? Another variable is density. These infill wells interfere with one another or “steal” some of the original well’s reserves.
Some of this is masked due to the improvements in fraccing (increased frac spacing along the lateral + increased frac fluids/proppant) but it is still happening.
So what does this mean? Some of the reserves from newer wells come from existing wells so these are not “new” reserves.
no one knows the exact spacing which is “optimum” it is really a measure of decreasing acres/well until one can no longer make money by drilling incremental wells.
I recall in the early 90s going from 320 acre spacing in the Cotton Valley at Carthage field, but it is now down to 80 or 40 acres per well.
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