I meant $7.00 a gallon, but if they can figure out a way to charge us by the hour they will.
Pushing us into solar and wind nonsense .
$7 GGE gallon of gas equivalent is $240+ bbl oil. Crude oil only makes up 46% of the price of a gallon. The rest is in order of cost share is taxes,refining, marketing, distribution, profit. To get $7 you need $246 bbl crude oil at the current 46% cost of production share. West Texas oil has a 100% return on investment for tier one wells at $60 bbl meaning it cost $30 to get the bbl to the refinery from well to refinery gate and the operator sees a 100% return of $30. Taxes not withstanding. Just one of the companies I have worked with in the Permian basin has 30,000 tier one well locations in their land holdings and 20000+ tier two. Drilling both of those out with a 40 rig line was projected to take 65 YEARS. I don not think people grasp how truly massive the Midland basin total petroleum package is. It is second only to Gawar in Saudi Arabia and not second by much. The oil payzone in the heart of the Midland basin is 4000+ feet thick with 14 discreet stratagraphic intervals. I typically drill Mega pads batch drilled with 24 basket weaved 12,000 ft or longer laterals 6 wells across and 4 stacked payzone vertically this leaves the other 8 payzone for future use. There is no way oil ggets anywhere near $200 at $80 every available rig in North America will be in the Midland basin drilling 24/7. Keystone was 800,000 bbl/day , one of the operators I work with has a million in ten goal that means that ONE company plans to produce 1 million bbl per day every day in a ten year ramp up to that target before covid they were already at 350,000 then price collapse and they have been DUCing wells ever since just waiting for prices to rise.
They don’t like the fact that they’re losing tax revenue with fuel saving vehicles, so some States charge by the mile. Don’t give them any ideas of charging by the hour!
Get $15 an hour-—single no other dependents—After taxes make about $9. Spend $7 a gallon gas....
HAPPY NOW, all you idiots???