Flood Of Saudi Oil To Hit U.S. Shores As Prices Hit $10

oilprice.com ^ | Apr 20, 2020 | Tsvetana Paraskova

[central_va]

All we need is a temporary $30/bbl tariff on oil imports.

[spudville]

The Saudis have to dump the oil somewhere because they have no place to store them, even with excess tanker capacity.

Would it make sense to increase our emergency reserve capacity and fill it at these or a negotiated lower price?

[Balding_Eagle]

The type of wells that are (were) being drilled are known for the steep decline rates.

That is also true of oil pulled from storage in salt domes, although I would guess the decline rate is much steeper from the salt dome.

[crusty old prospector]

To hollow out a salt dome would take quite a while. You would have to continually pump fresh water into it and then dispose of the brine. It can be done but it would take a while.

[Alberta's Child]

Threads like this illustrate why democratic societies are inevitably doomed to fail.

In the 1970s we hated OPEC because their production cuts drove up the price of gasoline and diesel fuel.

In 2020, we want OPEC to impose production cuts to drive up the price of gasoline and diesel fuel.

It just goes to show that it's impossible to overcome a completely unsustainable, contradictory human mindset that says you can charge as much as you want for what you sell, even while demanding to pay as little as possible for what you buy.

It also explains why slavery and totalitarian governments were the norm throughout most of human history.

[alloysteel]

“Cheapest gasoline price in decades and anyplace worth driving to is closed.”

Like my teenage years in the 1950’s - gasoline was $0.25 a gallon and I STILL couldn’t go to anyplace worthwhile. Not because it was closed, but because either I was grounded, or they would not let me in.

[eartick]

Natural gas is primarily used in the production of plastic. The NG is cracked and then the ethylene is used to make polyethylene

[ncpatriot]

Is this low price because we are not driving as much?

[central_va]

Will the price of propane go up or down?

[Lockbox]

This will greatly damage the oil industry in the USA short term and those locations with large oil industry foot print. Of course these areas will not be helped because we need to help the Covid-19 affected areas. Buckle up since gasoline will go from $1 a gallon to $4 per gallon in two years!

[DannyTN]

I strongly dissagree with your conclusi0n that democratic societies are doomed to fail.

We’ve had laws to address this sort of thing.

When dealing with other nations, we’ve had anti-dumping statutes and tariffs are an effective deterrent and cure.

I think we have laws on the books that prevent the US from participating in an oligopoly. So I’m not sure what Trump is doing agreeing to limit US production. Tariffs are the right way to go.

Internally, we have anti-trust laws that prevent you from selling a product below cost in order to drive your competition out of business.

[Zhang Fei]

[We need to bomb Mecca and seize the oil fields]

---

If we were in the oil field seizing biz, and were (from a legal perspective) capable of carrying out all the atrocities against enemy civilians required to make it cost-effective, Iraq wouldn’t have killed 5,000 GI’s and cost $1T. Shorn of American scruples re civilian dead, the pacification of Iraq would probably have cost tens of billions of dollars and been wrapped up in less than a year. Of course, probably millions of Iraq’s population would have been buried in mass graves, and the remainder 100% non-Muslim, converted at the point of a gun, and any trace of Islam a capital offense punished summarily and collectively in the street.

For better or worse, the Crusader ethos is long extinct, even as its Jihadist cousin continues to burn bright. Without a conquering ethos that justifies the slaughter of countless enemy civilians, no occupation among a hostile population can be cost-effective. This lack is precisely why Europe withdrew from its Third World colonies. It was a shortage of will, not a shortage of firepower.

[Dacula]

State Gas tax With Federal Tax (per gallon)
Alabama 21.21¢ 39.21¢
Alaska 14.66¢ 32.66¢
Arizona 19¢ 37¢
Arkansas 21.8¢ 39.8¢
California 61.2¢ 79.2¢
Colorado 22¢ 40¢
Connecticut 42.11¢ 60.11¢
Delaware 23¢ 41¢
DC 23.5¢ 41.5¢
Florida 41.99¢ 59.99¢
Georgia 35.15¢ 53.15¢
Hawaii 48.25¢ 66.25¢
Idaho 33¢ 51¢
Illinois 54.98¢ 72.98¢
Indiana 46.62¢ 64.62¢
Iowa 32.5¢ 50.5¢
Kansas 24.03¢ 42.03¢
Kentucky 26¢ 44¢
Louisiana 20.01¢ 38.01¢
Maine 30.01¢ 48.01¢
Maryland 36.7¢ 54.7¢
Massachusetts 26.54¢ 44.54¢
Michigan 25.9¢ 43.9¢
Minnesota 28.6¢ 46.6¢
Mississippi 18.79¢ 36.79¢
Missouri 17.42¢ 35.42¢
Montana 32.75¢ 50.75¢
Nebraska 30.6¢ 48.6¢
Nevada 33.78¢ 51.78¢
New Hampshire 23.83¢ 41.83¢
New Jersey 41.4¢ 59.4¢
New Mexico 18.88¢ 36.88¢
New York 45.96¢ 63.96¢
North Carolina 36.45¢ 54.45¢
North Dakota 23¢ 41¢
Ohio 38.51¢ 56.51¢
Oklahoma 20¢ 38¢
Oregon 36.82¢ 54.82¢
Pennsylvania 58.7¢ 76.7¢
Rhode Island 35¢ 53¢
South Carolina 22.75¢ 40.75¢
South Dakota 30¢ 48¢
Tennessee 27.4¢ 45.4¢
Texas 20¢ 38¢
Utah 30.01¢ 48.01¢
Vermont 31.01¢ 49.01¢
Virginia 21.95¢ 39.95¢
Washington 49.4¢ 67.4¢
West Virginia 35.7¢ 53.7¢
Wisconsin 32.9¢ 50.9¢
Wyoming 24¢ 42¢

[Dacula]

Sorry for the formatting issue.

The first price is per state and the second is after Federal tax per gallon.

[Alberta's Child]

You're actually making my point.

1. Are high oil prices good or bad for the U.S.?

2. Is it legal (domestically or internationally) to engage in blatant price-rigging the way this administration is proposing?

I think we have laws on the books that prevent the US from participating in an oligopoly.

That's a good point. Is a trade agreement an indirect form of establishing an oligopoly?

[Alberta's Child]

Low energy prices in the U.S. are generally driven by two things: (1) low demand, and (2) a strong U.S. dollar.

Oil is priced globally in U.S. dollars, so the price effectively goes down when the value of the U.S. dollar goes up.

[Oldexpat]

Trump needs to put a $20 per barrel tariff. Or set a monthly limit on imports. As the price drops to 2.73 maybe 30 is a better number.

[Sgt_Schultze]

The “Peak Oil” crowd is the same one now supporting this shutdown orgy

[dennisw]

Limbaugh just looked and said the best from Texas (intermediate crude) is at $5/barrel
https://oilprice.com/.

[Mariner]

POTUS has the authority to immediately impose a $50/bbl tariff on imported oil.
That would fire things back up in a couple of weeks.