Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Negative Oil Prices Arrive: Koch Brothers' Refinery "Pays" -$0.50 For North Dakota Crude
ZeroHedge ^ | 01/18/2016 | Tyler Durden

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 ...


TOPICS: Business/Economy; US: North Dakota
KEYWORDS: crude; energy; gasprices; northdakotasour; oil
Navigation: use the links below to view more comments.
first previous 1-2021-35 last
To: txrefugee
If oil gets to $10 or less per barrel, there will be no use for biofuel, solar,wind or nuclear energy. It will be too expensive to keep them afloat even with taxpayer subsidies.

Doesn't matter to the globull warming / climate change idiots. If it saves just one tree...

21 posted on 01/18/2016 11:47:48 AM PST by unixfox (Abolish Slavery, Repeal the 16th Amendment)
[ Post Reply | Private Reply | To 10 | View Replies]

To: ctdonath2

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!


22 posted on 01/18/2016 11:59:00 AM PST by Robert A Cook PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: ctdonath2

That same “nasty stuff” was selling for $55~65 bucks a barrel 18 months ago.


23 posted on 01/18/2016 12:00:27 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Robert A. Cook, PE
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!

Election Year! Coming up! Can't have the oil patch healthy, why, they'll donate to Conservatives!!

24 posted on 01/18/2016 12:05:15 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Freelance Warrior

Why aren’t we seeing new Dow numbers today? Did I miss something?


25 posted on 01/18/2016 12:05:55 PM PST by familyop
[ Post Reply | Private Reply | To 1 | View Replies]

To: familyop

Federal and government holyday (er, Martin Luther King) day. When they celebrate one of their satinist (er, saint’s) lives.


26 posted on 01/18/2016 12:07:54 PM PST by Robert A Cook PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: thackney

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.


27 posted on 01/18/2016 12:08:57 PM PST by ctdonath2 (History does not long entrust the care of freedom to the week or the timid. - Ike)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Smokin' Joe

Thats Funny. My die hard lib brother used to talk about oil prices, elections and Republicans.

I’m sure he doesn’t remember it.


28 posted on 01/18/2016 12:11:58 PM PST by eyedigress ((Old storm chaser from the west))
[ Post Reply | Private Reply | To 24 | View Replies]

To: ctdonath2

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.


29 posted on 01/18/2016 12:14:27 PM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Robert A. Cook, PE

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).


30 posted on 01/18/2016 12:29:37 PM PST by familyop
[ Post Reply | Private Reply | To 26 | View Replies]

To: txrefugee

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.


31 posted on 01/18/2016 3:22:37 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: bigbob

And for some reason my truck has started smelling like garlic when it runs.


32 posted on 01/18/2016 3:23:21 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: thackney

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?


33 posted on 01/18/2016 3:28:06 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: familyop

MLK day, markets closed.

Be happy, it is one day they can’t go down.

I wish they would just stay closed.


34 posted on 01/18/2016 3:30:43 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: central_va

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.


35 posted on 01/19/2016 5:06:31 AM PST by Eric in the Ozarks (Baseball players, gangsters and musicians are remembered. But journalists are forgotten.)
[ Post Reply | Private Reply | To 12 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-35 last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson