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Crude oil is now at $26.26. And I'm still paying $1.95 for gas, what gives! (VT)
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Jan 20, 2016 19:25
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Mozi posted:Crude oil is now at $26.26. I'm paying sub-$1.50 for gas Gives me more money for pizza and beer. God bless America
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Jan 20, 2016 19:26
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Mozi posted:Crude oil is now at $26.26. $1.65 here in MN, and I imagine that it has to do with the vagaries of regional supply and demand (and how much they think they can still gently caress you).
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Jan 20, 2016 19:31
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Its rebounding a bit now but the DOW was off almost 550 points earlier today.
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Jan 20, 2016 19:59
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ComradeCosmobot posted:Also California has to bring all oil in by tanker. There are no pipelines that cross the Rockies with refined or unrefined crude. That's why we talk again and again about the danger of oil trains (because trains are the only other way to get it here) Easy fix...just start leasing state waters for oil and natural gas production (again). By the time it's online, oil will probably be expensive again.
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Jan 20, 2016 20:13
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Zeroisanumber posted:$1.65 here in MN, and I imagine that it has to do with the vagaries of regional supply and demand (and how much they think they can still gently caress you). There is an independent station around here at $1.41. For comparison, $0.89/gallon gas in 1999 would be about $1.28 after adjusting for inflation, so it's not quite at 90s prices yet but it's getting really close.
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Jan 20, 2016 20:32
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Zeroisanumber posted:$1.65 here in MN, and I imagine that it has to do with the vagaries of regional supply and demand (and how much they think they can still gently caress you). The Midwest has a relative glut, and the oil industry (and energy industry, thanks Enron) knows it can gently caress over CA and every conservative will fall in line in defending those poor companies and blaming CA for (something), as you said. But yeah CA prices are due to refinery profits going through the roof and both tacit and outright collusion. Months ago there was some article that showed the recent switch between majors getting huge profits from extraction and now from refinery operations as the glut in supply has hurt the extraction profits (immensely).
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Jan 20, 2016 21:28
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eviltastic posted:I'm not seeing anything to substantiate prices below a dollar, although there are states that aren't too far off. Lowest I can find on the internet is a report of $1.23 outside of Tulsa, OK. http://www.fox2detroit.com/news/local-news/76375172-story Does detroit count? Haha.
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Jan 20, 2016 21:34
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Have you seen my apex seals? I seem to have lost them.
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The_Franz posted:There is an independent station around here at $1.41. For comparison, $0.89/gallon gas in 1999 would be about $1.28 after adjusting for inflation, so it's not quite at 90s prices yet but it's getting really close. The dream of the 90's is alive in Obama's America
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Jan 20, 2016 21:35
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Aeka 2.0 posted:http://www.fox2detroit.com/news/local-news/76375172-story Truly my gas buddy!
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Jan 20, 2016 21:38
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Here comes '08 part two: '16. As sequels go, I think the presidential election this time is much more interesting.
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Jan 20, 2016 23:17
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Just need vilerat to be resurrected so we have a good OP if its a true sequel.
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Jan 21, 2016 00:24
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Should I feel bad that so many people who work in oil are going out of business/unemployed? Because I really don't.
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Jan 21, 2016 00:56
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Demon Of The Fall posted:Should I feel bad that so many people who work in oil are going out of business/unemployed? Because I really don't. The industry is cyclical. Many will have good paying jobs again in a few years and the majors will be raking in record setting profits again. Just as the price of oil crashed below $2 it'll go back above $4 at some point and probably back below $2 again after that (all inflation adjusted). This poo poo has been happening since oil was found in Pennsylvania in the 19th century. Below $1.50 is pretty impressive though.
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Jan 21, 2016 01:00
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so why did north dakota's population still grow so much from jul 2014 to jul 2015 is it people coming in to mine the trapped roughnecks in williston for money
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Jan 21, 2016 01:03
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Jerry Manderbilt posted:so why did north dakota's population still grow so much from jul 2014 to jul 2015 It's because Fargo's gentrifying and has a boom'n nightlife scene.
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Jan 21, 2016 01:09
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Aeka 2.0 posted:http://www.fox2detroit.com/news/local-news/76375172-story It's funny that after all the doom and gloom of PEAK OIL we are seeing, quite literally, the cheapest gas prices the country has ever seen in 2016.
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Jan 21, 2016 01:32
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tsa posted:It's funny that after all the doom and gloom of PEAK OIL we are seeing, quite literally, the cheapest gas prices the country has ever seen in 2016. TIL oil is no longer a fossil fuel.
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Jan 21, 2016 01:49
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tsa posted:It's funny that after all the doom and gloom of PEAK OIL we are seeing, quite literally, the cheapest gas prices the country has ever seen in 2016. At some point societies might decide they're tired of the vomit comet and ask to get off.
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Jan 21, 2016 01:49
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Aeka 2.0 posted:http://www.fox2detroit.com/news/local-news/76375172-story They've got the unleaded gasoline bit down pat, unleaded water though....
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Jan 21, 2016 01:53
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Aeka 2.0 posted:http://www.fox2detroit.com/news/local-news/76375172-story  Technically it's just being reported by a Detroit-based affiliate; the reported price is from a few stations around Houghton Lake, which is a town nearly 200 miles away from the city of Detroit.
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Jan 21, 2016 01:53
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Demon Of The Fall posted:Should I feel bad that so many people who work in oil are going out of business/unemployed? Because I really don't. I worked in commercializing alternative energy for a supermajor for seven years and our entire project and commercialization plants got shitcanned in 2015 along with the several hundred researchers, farmers, engineers, and support staff- but at least you get to be a dick on the internet.
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Jan 21, 2016 07:40
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Holy poo poo sub 1$ gas. People in the UK are getting excited because petrol is going below £1 per litre...which is around $5.38 per gallon. It would have been around $7.64 at its highest. I know that US gas prices are crazy low, but i'm still amazed when I see them. Now its time for someone from Saudi Arabia to brag about how petrol is literally cheaper than water or something.
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Jan 21, 2016 10:59
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MikeCrotch posted:Now its time for someone from Saudi Arabia to brag about how petrol is literally cheaper than water or something.
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Jan 21, 2016 12:31
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MikeCrotch posted:Holy poo poo sub 1$ gas. People in the UK are getting excited because petrol is going below £1 per litre...which is around $5.38 per gallon. It would have been around $7.64 at its highest. I know that US gas prices are crazy low, but i'm still amazed when I see them. Actually Saudi is having to cut back on their petrol subsidies because the low price of oil is loving their budget.
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Jan 21, 2016 13:19
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Jumpingmanjim posted:Actually Saudi is having to cut back on their petrol subsidies because the low price of oil is loving their budget. Oil subsidies are great pre:Country bbl/day per 1000 people Kuwait 134 United Arab Emirates 103 Saudi Arabia 100 Qatar 85 Canada 64 United States 61 Netherlands 60
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Jan 21, 2016 13:43
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Honestly how much of this is just due to wall street doing it's thing ? Embargo on Iran is done, some investors start selling, price drop, everyone else start selling. Remember the great why is gas so loving expensive post ? It is the best post I ever read on SA. Found a repost here: https://webewizards.wordpress.com/2011/03/31/repost-why-is-gas-so-loving-expensive-the-answer-may-surprise-you/ Does this guy even post anymore ?
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Jan 21, 2016 14:30
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Some French Guy posted:Honestly how much of this is just due to wall street doing it's thing ? Embargo on Iran is done, some investors start selling, price drop, everyone else start selling. Remember the great why is gas so loving expensive post ? It is the best post I ever read on SA. Found a repost here: https://webewizards.wordpress.com/2011/03/31/repost-why-is-gas-so-loving-expensive-the-answer-may-surprise-you/ Well it's not just Wall Street because European and Asian markets are being affected as well. I guess we will see in the next few days if there is a rebound and this was just people panic selling (except in China because lol the Chinese stock market right now)
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Jan 21, 2016 15:30
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Very little frankly. There is way more oil being produced per day than there is demand for it so in this case its mostly supply/demand driven. Oil is very demand driven and is what it is. More oil around does not mean demand increases to compensate so the difference between 2% over supplied and 2% under supplied is massive price swings.
Acelerion fucked around with this message at 19:06 on Jan 21, 2016 |
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Jan 21, 2016 15:31
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Some French Guy posted:Honestly how much of this is just due to wall street doing it's thing ? Embargo on Iran is done, some investors start selling, price drop, everyone else start selling. Remember the great why is gas so loving expensive post ? It is the best post I ever read on SA. Found a repost here: https://webewizards.wordpress.com/2011/03/31/repost-why-is-gas-so-loving-expensive-the-answer-may-surprise-you/ As I said this has happened before and it will happen again (  ). This is kind of the same situation as the 80s oil glut - there was a shortage in the late 70s, more fields came online as speculators drove the price up, then the new production led to a glut which eventually crashed the price which made new fields unprofitable so were shut down which reduced the supply of oil leading to a shortage....edit: in the case of the 80s it was actually reduced demand not overproduction per se, its the same idea. Swings like this used to be bad enough to cause Texas of all places to assign production and pricing to the government 
hobbesmaster fucked around with this message at 16:21 on Jan 21, 2016 |
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Jan 21, 2016 16:17
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Acelerion posted:Very little frankly. There is way more oil being produced per day than there is demand for it so in this case its mostly supply/demand driven. Oil is very demand driven and is what is is. More oil around does mean demand increases to compensate so the difference between 2% over supplied and 2% under supplied is massive price swings. I rather like the fact that an 18-month window for a price crash probably caught a lot of speculators off-guard and that there are a bunch of white collar, country club assholes sweating bullets right now. I know it sucks for the roughnecks and office guys, and I have sympathy for them, but I've got to get my yuks out of this situation somehow.
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Jan 21, 2016 16:39
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MikeCrotch posted:Well it's not just Wall Street because European and Asian markets are being affected as well. I guess we will see in the next few days if there is a rebound and this was just people panic selling (except in China because lol the Chinese stock market right now) It's about as clear of a case of increasing supply and decreasing demand as you can have.
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Jan 21, 2016 16:49
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Conventional oil peaked in 2005 or something, and outside of america world "total liquid" oil production (includes biofuel and natural gas liquids) has been pretty much flat since then (a little up in a few countries) according to the EIA. QE probably helped boost oil production quite a bit in the US, cheap loans -> overinvestment -> *QE stops* *China poops everywhere* *Wobble Wobble* -> crashing commodity prices -> lots of bankruptcies and underinvestment -> ???
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Jan 21, 2016 16:50
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It'll take a couple of years to eat through the oversupply. The U.S. tight oil industry is hosed for the next decade though.
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Jan 21, 2016 17:00
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Jerry Manderbilt posted:so why did north dakota's population still grow so much from jul 2014 to jul 2015
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Jan 21, 2016 17:06
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KaptainKrunk posted:It'll take a couple of years to eat through the oversupply. The U.S. tight oil industry is hosed for the next decade though. The curve / timing can be deceptive, hedges and already drilled wells extended production well through 2015, and there's still some hedges that haven't run out yet (most run out this spring from what I've gathered), so it's not easy to draw any conclusions on how it will look going forward. We do know that discoveries and new projects are way below where they need to be for a stable/gentle curve development.
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Jan 21, 2016 17:56
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Demon Of The Fall posted:Should I feel bad that so many people who work in oil are going out of business/unemployed? Because I really don't. Don't. I played a flight sim with a guy who worked two weeks on, two weeks off at a Gulf coast oil rig. His paraphrased words when the economy tanked in 07/08 were "I get paid far more than what I would if I did a similar job in another field. Smart oil workers take that extra money and invest or save it, because you never know when the next two year layoff is" He drove a beat up early 90's Ford and not a brand new King Ranch.
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Jan 21, 2016 18:19
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Demon Of The Fall posted:Should I feel bad that so many people who work in oil are going out of business/unemployed? Because I really don't. There is some sympathy to be had for people who've never experienced a boom/bust cycle before, but largely they too spent their money like idiots. The guys that have been doing this poo poo their entire life yet still never saved a dime? gently caress 'em. Guess you should have taken a finance class at the School of Hard Knocks. The owners of small/medium oil field related companies? Zero. With 99.99% certainty these dudes leveraged themselves out the rear end, drew huge salaries that they blew on houses and toys and have precisely no idea why they can't weather the storm.
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Jan 21, 2016 18:46
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Zeroisanumber posted:I rather like the fact that an 18-month window for a price crash probably caught a lot of speculators off-guard and that there are a bunch of white collar, country club assholes sweating bullets right now. No doubt. When this initially started people were 'right-sizing' for 40 dollar oil and getting called extreme. Everyone expected things to turn around in 12-18 months. Now all the hedges have rolled off and the industry is staring down the barrel of another massive round of layoffs. It's a panicky time.
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Jan 21, 2016 19:05
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I spent some time out in Fort McMurray during the recent boom cycle there, absolutely do not feel any sympathy for most of the workers directly affected. There was rampant drug use, alcoholism and frequent trips to strip clubs. Most guys were acting like the good times would never end and deserve the rude awakening. I feel for the satellite industries and stuff like the clean up companies but it seemed like most of the rank and file were spending their money foolishly.
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Jan 21, 2016 19:18
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