[monkeychops]

RELAX......Ill bet real money gas wont go over $3 a gallon for a LONG LONG time.
OPEC is over......and OPEC knows it.
The USA has drilled and capped enough wells to become an net exporter of oil if the price rises past $75 a barrel.
welcome to the SHALE REVOLUTION...
we are loaded with oil if the price is right........why do you think the Saudis and OPEC opened up the pumps anyway??
They were trying to drive the shale drillers out of the market...It didn't work....They just drilled and capped the wells. .Some are still pumping...

The Energy Department predicts that U.S. production will fall from 9.4 million barrels a day in 2015 to 8.8 million this year and 8.7 million next year — the forecast assumed oil at $50 a barrel next year.
Research firm IHS Inc. estimates that if crude rises to $55, U.S. production will instead grow by about 500,000 barrels a day — offsetting nearly half of OPEC's stated cut.
Much of that production is expected to come from the Permian Basin in Texas, where prices for acquiring oilfield acreage have skyrocketed in recent months. There are now almost as many drilling rigs running in the Permian as in the rest of the country combined, including offshore.
"A few months ago rigs were being stacked on the side of roads," said Avi Mirman, CEO of Lilis Energy Inc., a small producer that operates in the Permian and the Rockies. "Today it's almost impossible to get a hot rig" with a crew.
Mirman is facing higher costs for materials used for hydraulic-fracturing or fracking, a technique to boost well production. The specialty firms that do the fracking have raised prices because "they are booked out through June or July. It's pretty wild."


So don't worry about it.
Besides Regan-Bush ruined the Russians with low oil prices....They collapsed the USSR with $18 a barrel OIL.
Is it a coincidence that just after Putin invaded Ukraine that crude prices dropped like a rock. NO because the Saudis opened up the pumps on orders of the Obama administration......why? because we own them..... have for decades.

So don't worry.....as long as putin is acting up....prices will be kept down.

They only rise in response to china....when the china economy starts growing at double digits again for an extended time frame....then look for the price to rise significantly to curb the growth in the china economy.
OIL is the weapon we use....been working for decades.

[Memphis SS]

Originally Posted by cigarfan

Old news, different day. It's up & down. Must be a slow news day.

Agree.. Most of the time I try to avoid treads like this.. The Sky is falling..LOL..

[Oil Man]

Originally Posted by monkeychops

Much of that production is expected to come from the Permian Basin in Texas, where prices for acquiring oilfield acreage have skyrocketed in recent months. There are now almost as many drilling rigs running in the Permian as in the rest of the country combined, including offshore.
"A few months ago rigs were being stacked on the side of roads," said Avi Mirman, CEO of Lilis Energy Inc., a small producer that operates in the Permian and the Rockies. "Today it's almost impossible to get a hot rig" with a crew.

Last summer, I was at a Honeywell conference in San Antonio, talking to an independent producer while drinking beer in the resort swimming pool. He told me that at that point (June '16) they were losing about $400k/day at the price point WTI was at (high $30/bbl range). Their hedge against the Saudis was to stay the course and keep producing, they hadn't pushed the panic button and started capping wells/liquidating assets yet. He figured he was good through Christmas, but said he might not be back next year if someone didn't blink.

I think the Saudis and Russia are unquestionably hurting. And honestly, the worst thing that happened all year was a certain White House brokered deal that let a certain heavily sanctioned OPEC member nation trade crude again, while simultaneously freeing up to $150B in previously frozen assets. They understood that $30/bbl was much more profitable than $0/bbl, and started dumping cheap crude onto an already depressed market.

Where I work, the fallout from this combined with China's economic slowdown is becoming obvious. Light, sweet Russian crude that has been going straight to China for most of the last decade is now finding it's way around the Pacific Rim, and competing with ANS from Valdez.

Convincing these guys to cut production to potentially increase revenue is like de-escalating a Mexican Standoff: No one wants to be the first person to holster their pistol.

[Oil Man]

Originally Posted by BlkReaper

surprisingly, gas stations don't make the bulk of their money off of gas.

You come for the gas, but it's the can of Red Bull, 2-fer deals on Hot Dogs/Chips/Soda/etc. that pay the bills.

When my company bought the fuel distribution rights to the largest chain of gas stations in Southern California a few years back, the seller retained the convenience store brand and retail rights.

[Oil Man]

Originally Posted by SSport16

And good thing the US will finally start drilling, fracking, and pulling a boat load of oil, gas, shale oil, etc. from the ground and offshore next year, so we can finally tell OPEC and the rest of bozos where to go and not have to worry about rising prices everytime they say they are cutting production.

We have to walk a delicate path with this.

I completely agree that more domestic production is a great thing, and so are more high-paying jobs in the domestic industry. But the wolf is at the door, and we have to beware.

Several large producers (mostly Russia/Putin) understand the enormous economic advantage that the Petrodollar represents to our economy. Petrodollar recycling has a tremendous stabilizing effect on our currency, and is much of the reason we can run a 20 Trillion-dollar national debt without the value of our money being decimated.

The Saudis are often not great friends, but the symbiotic economic relationship between us and them has been beneficial to both of us. Putin would love to drive a wedge there. I will be very curious to see if our new foreign policy tries to heal the damage done to our strategic relationship in recent years.

[JLSuperfly]

Originally Posted by avalonandl

2 years ago we were paying $3 a gallon.....

This is what we pay now in California.

[MovieGuy]

That just means people going back to work producing shale oil here in the United States. They were producing millions of barrels a day until OPEC cut their prices so far it became impractical to frack for oil here. If OPEC raises their prices we will go back into full production here. Lots of new jobs.

[c4racer]

I'd be fine paying another 50 cents a gallon if it means more US jobs and less dependency on the Middle East. All day long twice on sunday!!

Also demand is going down in the US with more fuel efficient and alternative energy cars on the road so that helps a lot too - this is still mainly a supply / demand driven market.

[BluinSC]

Not an oil expert by any means but, my understanding is that....

1. Production cut leads to higher prices per oil barrel.
2. Higher prices means more fracking/offshore drilling/ oil sands ( practices can now afford to drill more due to higher oil prices).
3. Because more drilling is being done, oil supplies build up. This leads to lower prices.

Is that not how it works now, or am I missing a step? I don't think prices will skyrocket, but anything can happen (refinery explosion, pipeline leak, etc.)

[Cldgin2]

You guys on the other side of the country crack me up... we've been 2.30 plus for ages now. West coast always gets screwed on gas prices

Originally Posted by nukemustang

its going to go up faster than that... anyone who owns a gas station is looking to make profits immediately... gas here in SC went from $1.81 three days ago to $1.99 this morning.

[eNGinE]

Yesterday i fueled for exactly $6.01 per gallon (in germany for 94 octane premium) so PLEASE stop moaning!
If you can't afford it, get another ride.

[Mr. Wyndham]

Originally Posted by Cldgin2

You guys on the other side of the country crack me up... we've been 2.30 plus for ages now. West coast always gets screwed on gas prices

Same here...2.30s forever...and since I only buy 93....2.80s....

I don't really even pay attention to be honest...when gas was up to $4.00/gallon...I started budgeting for that sort of price. I knew this most recent dip would be short-lived...whether that was a month, a year, or a decade...but it wouldn't last. Compared to that...we're still doing all right.

But now I have some extra dollars and cents saved up to buy as much gas as my evil gas guzzler (and my right foot) needs.

[MrChrisLS3]

Originally Posted by Mr. Wyndham

Same here...2.30s forever...and since I only buy 93....2.80s....

I don't really even pay attention to be honest...when gas was up to $4.00/gallon...I started budgeting for that sort of price. I knew this most recent dip would be short-lived...whether that was a month, a year, or a decade...but it wouldn't last. Compared to that...we're still doing all right.

But now I have some extra dollars and cents saved up to buy as much gas as my evil gas guzzler (and my right foot) needs.

Yeah, all depends on where you're at. I lived in Kansas City in '08 when gas hit the $4-$4.50 mark. K.C. being a transportation hub, that all but killed the economy there. In '14 I moved to Houston. I hear stories all the time about how the city was booming then. Now, you'd think it's the great depression around here. I mean, the main interstate through the city is called The Energy Corridor, lol. If gas prices hit $4/gal, it'll be like Mardi Gras around here.

[ST1LE]

Originally Posted by Padre

I got 30mpg on a 100 mile trip with my 2SS A8 last night. Burned real gas, not the food-mixed gas.

Once new sources of oil are opened up in the US, OPEC will be irrelevant. This is their last gasp.

Padre

Considering the U.S doesn't allow crude oil exports, I think OPEC will be just fine as the world still needs oil regardless of what the U.S. produces for itself.