Posted on 04/07/2025 8:10:18 AM PDT by marcusmaximus
The Kremlin said on Monday that Russia would do everything necessary to insulate the world's second largest crude exporter from a global "economic storm" which has sown extreme turbulence in oil markets and raised concerns of a recession.
-snip-
The plunge in oil prices poses a direct threat to Russia, which is spending hundreds of billions of dollars on its military campaign in Ukraine, Russia's most expensive military operation since the Soviet-Afghan war of 1979-1989.
Kremlin spokesman Dmitry Peskov said that the oil price was being monitored very closely as it was key for funding the Russian budget.
"We are very closely monitoring the situation, which is currently characterised by extreme turbulence, is tense and emotionally overloaded," Peskov told reporters.
"Our economic authorities are monitoring this situation very closely and, of course, are doing and will do everything necessary to minimise the consequences of this international economic storm for our economy."
The price for Russia's Urals blend for cargoes loading from Primorsk, Ust-Luga and Novorossiisk ports fell to around $53 per barrel, below the $69.7 per barrel average Urals price Russia has based its 2025 budget on.
Oil and natural gas sales account for a third of Russia's federal budget revenues - which are funding a 25% rise in defence spending this year to the highest levels since the Cold War.
(Excerpt) Read more at uk.finance.yahoo.com ...
Very good. Excellent.
But in those days it was . . . “conventional” rock. Not shale. You don’t get much drainage in shale. Oil does not move horizontally because the rock . . . shale rock . . . lacks what is called permeability. Conventional rock has permeability (interconnectedness of the pores in the rock containing oil). Shale requires artificial permeability to get it to flow oil (that’s what fracking is, artificial permeability).
So in shale, the oil will not drain to you. You have to frack it.
In contrast, the original wells in Ghawar (the uber big field in Saudi Arabia) tapped in 1950 still flow oil, and at greater barrels/day numbers than shale wells on day 1. They just have far superior rock.
I was trying to make a joke.
The higher the better. It is not about “feeling secure” in my job, it is about raising money from investors who are being asked to commit millions of dollars to a project where the revenue stream can be completely turned upside down by a careless tweet or a stealth deal with OPEC.
A shale well in my neighborhood costs around $2.5 Million to drill and another $3 or 4 Million to complete and frac. That doesn’t include cost of tanks, facilities and pipelines. It makes it very difficult to convince investors to invest $6 or 7 Million per well when their rate of return cannot be calculated with some relative certainty.
Personally, I think $75 to 80/barrel is a fair price at which operators can make returns and consumers can afford gasoline/diesel. State and federal excise taxes and other artificial costs are a real issue artificially inflating the true cost of production and refined products.
Ultimately, if left alone, the market will find a price that allows producers to make money and consumers to afford energy.
If it gets low enough Trump can refill the SPR.
This is the 5th article on this you have posted today:
https://freerepublic.com/tag/by:marcusmaximus/index?tab=articles
Kinda spammy.
Yes if it’s below $69.00 a barrel they have no profit margin.
Got it. Thanks.
PA used to be the oil capital of the US. Things change.
I heard From a friend who used to work at a refinery that in the summer the butane is removed.That’s why the mileage decreases, in the winter the butane is put back in to enrich the gas for better firing in the colder weather.
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