Posted on 03/10/2017 10:12:48 AM PST by Steely Tom
The of oil is down, from $53 on 7 March, to a bit above $48 today. This, going into the summer driving season.
(Excerpt) Read more at nasdaq.com ...
The hits just keep coming for you guys. I still miss the land of my birth, youth and young adulthood. But California is nuts with a capital Moonbeam.
The decline in oil prices reflects the fact that the world is still in recession and that demand is not increasing at a high rate. Also new technology has increased supplies and has made any OPEC attempt to restrict production and artificially raise prices likely to fail. The recent attempt to do that has already fallen apart. This is good for the U.S. economy for many reasons. Cheaper energy is good for consumers and benefits the overall economy. Also whenever there is a decline in oil prices, Arabs, Asians and even Europeans get very nervous. They turn thei assets in US dollars for security and essentially infuse capital into US markets.
“Give it time, Trump opened up the Gulf of Mexico for drilling, then we are getting the pipeline, he’s going to bring it down to a buck I am betting.”
How is anyone in the United States going to make money drilling for oil, if gas is only selling for a buck a gallon?
Summer blend is more expensive in places that have a mandate for ethanol additives.
I just remember it from the state capitols song.
It's at the end of the song.
We’re all gonna die.
It’s the altitude.
Cheap energy = fuel for an economic boom
That’s the rub here.
And that Keystone pipeline ain’t gonna happen, either.
(But it’s market forces, not government stopping it).
Hi Vendome! (from Meremortal).
How much are the state taxes there? Colorado pays 18 cents federal and 22.3 cents state, IIRC.
Here at $2.00 a gallon you are paying $1.60 for the gas.
Compare that to the increase in college tuition over the last 20 years.
I believe our taxes a bit more than enough times what your are...
Which is great because our roads are in such great condition...
A little heads up in a world of electric car hype.
1) Only oil fueled tractors can plant the number of acres req’d for 7 billion people before planting season expires. And harvesting season, too. Electric tractors have been built for amusement. They drain the battery in 10 minutes. 1 horsepower is 745 watts and a proper tractor is at least 350 horsepower.
2) There are no interstate trucks that don’t run on oil that bring food from Iowa to Atlanta or NYC.
3) The US burns 20 million barrels (a barrel is 42 gallons) of crude every single day. The US extracts (produces) domestically about 9 million bpd. It buys the rest. It buys it for pieces of paper with ink on it created by the Federal Reserve out of thin air. How long will people who have something of real value, oil, be willing to trade it for such a thing.
4) When you hear about breakeven price, maybe of shale, ignore it. It’s all bullshit. You can make up any breakeven price you want by just excluding this cost or that cost — or by simply not repaying the loan borrowed to drill and frack. There is a history of not repaying loans in America. It’s called “the Fed bought up $4 trillion in mortgage backed securities as part of Quantitative Ease.”
5) You can pretend to print oil, as the Fed is doing, but you really can’t once people refuse to trade it for paper.
It’s already operating.
Cost of production and demand are the factors to consider.
At $1.00 per gallon you are only paying about 60 cents for the gas, the rest is taxes. Not going to happen as production will plummet well before that price.
Heh.
The Frac sand industry is starting to boom again. Expansion and groundbreaking new strip mines here in Texas means the oil boom is starting again.
Halliburton and other services companies are rolling pump trucks on I35 again.
Yes gas will be cheaper, and we are exporting fuel! Bad news for OPEC.
I should have Keystone XL to be more precise.
Consider for a moment that oil price may not be determined by supply and demand.
It’s not a law of nature like gravity. It’s a law of pseudo science — economics.
If supply and demand were all that powerful, there would be no wiki entry for “predatory pricing”.
So us folks in Mississippi can have $2.00 gas...Thanks
China,china, china. The Commies and their peak oil have failed ...
Michigan.
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.