/Posted on 01/18/2016 10:55:19 AM PST by Freelance Warrior
The Koch brothers are actually charging $0.50/bbl to take low grade oil at their Flint Hills Resources refining arm.
/
North Dakota Sour is a high-sulfur grade of crude and "is a small portion of the state's production, with less than 15,000 barrels a day coming out of the ground," Bloomberg notes, citing John Auers, executive vice president at Turner Mason & Co. in Dallas.
(Excerpt) Read more at zerohedge.com ...
Doesn't matter to the globull warming / climate change idiots. If it saves just one tree...
Cheaper to pay a little bit to get rid of certain crude blends to keep the larger refinery and pipelines going.
By the way, this IS part of Obola’s AND his allies overseas to destroy the TX, OK, ND, PA and oil state economies. He HATES the oil patch!
That same “nasty stuff” was selling for $55~65 bucks a barrel 18 months ago.
Election Year! Coming up! Can't have the oil patch healthy, why, they'll donate to Conservatives!!
Why aren’t we seeing new Dow numbers today? Did I miss something?
Federal and government holyday (er, Martin Luther King) day. When they celebrate one of their satinist (er, saint’s) lives.
Well, now supply outstrips demand by enough that one almost has to pay someone to take poor-quality oil, considering that the good easy-to-refine stuff is now much cheaper than the nasty stuff was 18 months ago.
If it costs, say, >$18 more per barrel to refine sour crude than sweet, it’s cheaper to just buy sweet at $18/barrel.
Thats Funny. My die hard lib brother used to talk about oil prices, elections and Republicans.
I’m sure he doesn’t remember it.
Not if your refinery was built to refine heavy sour.
Refineries are optimized for specific crude oil grades. Everything away from that in quality either reduces throughput or increases costs, or both.
Thanks! Before long, maybe we should give government folks the remainder of the year off by taking some extra time off for ourselves (general strike).
Think about it, the market, the traders expect the oil and gas industry to balance supply and demand on the head of a pin. The world consumes about 96 to 98 mmbo/d now. The market expects the dead band of control to be within less than 1% of scale. If we are 1% of consumption over in production there is a glut and the prices crash. Less than 1% under the mark and there is a dire shortage and prices spike.
The turn around time for projects to change the balance is about 5 years. Shale could swing faster but not without a massive effort. Any way you slice it, increasing production is a slow slog.
You don’t keep your house temperature within 1% of the thermostat setting. If you try to do that you’ll short cycle the unit and possibly burn the house down.
I have marveled for 40 years that the industry has given control to their fate and reputation to a bunch of racket ball playing, snot nosed traders that never saw a drilling rig. NYMEX should have been killed when it was an ovum.
And for some reason my truck has started smelling like garlic when it runs.
I’m always wary of my wishes and wishful thinking clouding solid and objective analysis of facts. However, I found it odd this morning when I woke to a squib on the news from Oklahoma City that Goldman said in the last few days that production declines are now setting up for a price spike later in this year. Did I dream that?
Only last week Goldman were still hot on the bandwagon that $20 for a long time and low prices for as far as one can see into the future are probable. Not possible, probable.
Have they finished their short sell strategy and moved on to something else or what?
MLK day, markets closed.
Be happy, it is one day they can’t go down.
I wish they would just stay closed.
A very small amount of America’s electricity (and something like 100 percent of Puerto Rico’s) is oil fired. This is from residual oil, left over from refining.
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.