PETROLPHOBIA (Page 38/66)
maryjane NOV 13, 11:27 PM

quote
Originally posted by USFiero:

Been under $3 a gallon for a couple weeks here - everywhere. The pundits are guessing that the Saudis are driving prices down to punish Russia, to hinder ISIS, to keep the boom in oil from the US and Canada from being profitable. Oil is under $80 a barrel, hasn't been in the 70's for some time. I remember hearing some news story of why low oil and gas prices were not that good for the economy... oh please.

How long will it last? I just hope those few people who use oil heat get their tanks filled pronto. And the US government shores up our reserves. I adjusted my use years ago, so it doesn't affect my day to day behaviors, but if it means lower cost food and transportation costs for goods, I'm all for it.


Prices were already down before Saudi began lowering their ask price. They didn't think Keystone would ever be a reality, but nce it became a real possibility in the weeks right before mid term election they announced they would not cut production like they had in the past to try to get rid of the oil glut and get prices up. If they can keep crude prices down long enough, their hope is thatthe North American oil industry itself will decide keystone isn't worth the effort. Saudi is old oil--they can survive a long time with low oil prices, but the NA shale oil industry is new oil--hasn't yet reached break even on total revenues and can't survive as easily as Saudi and the rest of OPEC can.
Would love to have been a fly on the wall at the meeting between Saudi Oil Minister and Venezuela a couple weeks ago in Caracas.

MadMark NOV 14, 12:51 AM
I believe the XL pipeline was being built specifically for oil tar sands on Canada. This is not light crude oil. It takes specific cracking equipment to break it down. Right now the Marathon refinery in Detroit just built a new addition that is specifically for the tar sands oil. They are already processing it.

I think that the Suadi's are hoping to bring world oil prices down to a point where the tar sands oil and some of the other methods of producing oil in the US, like fracking, become to expensive to produce at that pricing. The Saudi's can hold out for quite a while and they hope that they can eliminate their competition. That is what monopolies try to do, manipulate the market to their advantage. Can we and should we as a country fight back against this, the Suadi's, ploy.
maryjane NOV 14, 07:43 AM
True, but in 2008, the Alberta crude was expected to be the big provider of oil independence, not Bakken Shale or Eagle Ford Shale. Bakken wasn't in 2008, the proven reserve it has turned into today. Right now, most of Bakken crude is travelling by tanker and rail--out of ND and Montanna--great for rail industry but not very economical or efficient.


quote
The Keystone Pipeline System is an oil pipeline system in Canada and the United States. It runs from the Western Canadian Sedimentary Basin in Alberta, Canada, to refineries in the United States in Steele City, Nebraska; Wood River and Patoka, Illinois; and the Gulf Coast of Texas.[notes 1][2] In addition to the synthetic crude oil (syncrude) and diluted bitumen (dilbit) from the oil sands of Canada, it also carries light crude oil from the Williston Basin (Bakken) region in Montana and North Dakota.[2The proposed Keystone XL pipeline starts from the same area in Alberta, Canada, as the Phase 1 pipeline.[11] The Canadian section would consist of 526 kilometres (327 mi) of new pipeline.[20] It would enter the United States at Morgan, Montana, and travel through Baker, Montana, where American-produced oil would be added to the pipeline, then it would travel through South Dakota and Nebraska, where it would join the existing Keystone pipelines at Steele City, Nebraska.[1] This phase has generated the greatest controversy because of its routing over the top of the Ogallala Aquifer in Nebraska.
USFiero JAN 05, 04:13 PM
Oil is dropping to around $40 a barrel and prices are dipping below $2 a gallon for gas. At what point does this encourage inflation? And is the timing for that good? Oh, and check page One of this thread... from 2005?

[This message has been edited by USFiero (edited 01-05-2015).]

avengador1 JAN 05, 10:03 PM
I saw regular at Costco for $2.06, super was $2.31 today.

[This message has been edited by avengador1 (edited 01-07-2015).]

Hudini JAN 06, 12:43 AM

quote
Originally posted by USFiero:

Oil is dropping to around $40 a barrel and prices are dipping below $2 a gallon for gas. At what point does this encourage inflation? And is the timing for that good? Oh, and check page One of this thread... from 2005?




The news I read said fears of DEFLATION. Seriously? Wall Street panics because costs might go down? If rising oil prices cause recession, why shouldn't low oil prices cause a economic upturn?
pokeyfiero JAN 06, 01:27 AM
The price per barrel is getting down. I am going to have to look and see if acrylic sheets have likewise fallen as much.
I was told before when it was skyrocketing in price that it was directly related to the price of crude.
maryjane JAN 06, 09:47 AM

quote
Originally posted by pokeyfiero:

The price per barrel is getting down. I am going to have to look and see if acrylic sheets have likewise fallen as much.
I was told before when it was skyrocketing in price that it was directly related to the price of crude.


Depends "when" the crude and other raw material that the acrylic is made from were 'purchased".
Some 'plastics' are made from pelleted byproducts of fuel production, and these by-products are stored until needed.
The daily cost on any given day reflects both the original cost of those raw materials and the replacement costs, but I don't know how much of each.
Formula88 JAN 06, 10:39 AM
Saw an interesting article the morning. It said US Oil was down below $50/barrel, and the last time oil dropped that much that fast ($40/bbl in 6 months, IIRC) was in 2008 just before the bubble burst. Any skilled investors want to weigh in? Are we heading for another crash this year?
maryjane JAN 06, 01:31 PM
I don't think so 88. < Crude $ will weigh the energy and it's service sector down somewhat, but the overall benefit in lower prices will buoy up the rest of the economy.
There will be some drop in steel production related to OCTG and some drop in energy exploration related financial institutions, but for the bigger picture, I don't see a national recession, tho market volatility is going to be commonplace.

[This message has been edited by maryjane (edited 01-06-2015).]