We have shut down some of the less efficient ones but there has been more expansion of the other for a net increase in US refining capacity.
Posted on 12/03/2014 7:50:28 AM PST by thackney
Average price? Or just one station?
Agreed, but that link is for future prices going out for years. It is opinion of course, but opinion of those that risk their money in oil.
The lowest in my area.
Is he invested in GTL?................
I don’t know of GTL investment. His company is Clean Energy Fuels selling LNG and CNG. Their big push was to get ~150 stations on the National Highway System.
https://www.cleanenergyfuels.com/
” TBone and Cramer. The Obama and Holder of Oil.”
LOL!
And buy gold at 1700......it is going to 2500 in 2013 : )
Nobody in banking risks money. They buy commodities to offset another bet. It is like a bookie that bets on the Giants because to many of their clients bet on the Redskins, that way, either way, they get their fee. That is the basis of the derivative scheme. Goldman Sachs and JP Morgan don’t really care what oil does despite having money in it. Whether it goes up or down, they win. Wall Street is now run by mathematicians.
Hard to take that bet on what single station might do on a single day.
I would take it for say the gasbuddy.com color maps for any area in Texas, zoomed out to where it still shows colors for areas versus individual stations. No color categories $2 or lower.
http://www.gasbuddy.com/gb_gastemperaturemap.aspx
Same pricing system is used by refineries managers that actually need oil delivered every week.
In the short term I agree. But the price of oil is dropping because supply is up (thanks to U.S. production) and demand is down (thanks to the worldwide Obamarecession).
Low priced oil will go a long way towards increasing the worldwide economy. At the same time, U.S. production will drop or at the very least level off, because most of the recent boom in U.S. production is not profitable below $80 a barrel.
That will cause oil to slowly increase in price until a new equilibrium is reached. My guess is that prices will again level off at around $100 a barrel, in about a year or a year and a half.
So I think Pickens timeline is accurate, but I don't think that the Saudis have any incentive to cut their share of the oil production market to get there.
BUMP! You have explained it perfectly.
I think you are right, but I don't think it will stay below $2.00 for long.
Anyone else remember when gasoline plunged down below $1.00 a gallon in the late 1990s?
Refineries have been shutting down in droves because the prices are too high and they can’t make a profit to the end user.
The Saudis made the move to "punish" some competitors. What is some of these people don't like to be pushed, or put into their place. Could cause some economic problems back home - some riots, etc. And for what - the Saudis?
The Saudis have a lot of money, but no military. No protection. Having money is great - as well as people are willing to be bought off. But what if money is not enough? How difficult would it be to start a coup in the House of Saud? Or to set off a "dirty bomb" somewhere that will disrupt the flow of oil - either out of Saudi Arabia, or through the Straits of Hormuz.
Last time the economy was booming, oil prices were under $40 per barrel.
We have shut down some of the less efficient ones but there has been more expansion of the other for a net increase in US refining capacity.
Wishing will not make it so.
TBP also is heavily into water rights, IIRC.
Wadda mean return?, he just moved into higher ass ones.
Actually he makes some good observations in the article. Saudi Arabia is tired of carry the water for the OPEC cheaters. They have the currrency reserves to ride this out and the others do not. Countries like IRAN and Venezuela need will have to cut oil production.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.