|
|
Extreme Veteran
Posts: 333
 
| While I love paying less, I'm more concerned as to WHY we're paying less. Something has to be behind it and it can't be supply and demand..just my 2 cents for tonight..lol |
|
| |
|
 Extreme Veteran
Posts: 304
Location: Up and over to the right | It is supply and demand. The east wants us to keep using their supply instead of us using our own. That's how the system works, when we get bored with paying out of our noses for $5 fuel we look to other resources. |
|
| |
|
  Damn Yankee
Posts: 12390
 
Location: Somewhere between raising hell and Amazing Grace | Because we started using our own resources for oil....it forced the middle east to drop prices.
That's all there is to it. They are hoping to put everybody else out of business so they can go back to being the main producers of oil supply. |
|
| |
|
Extreme Veteran
Posts: 333
| But we've been drilling for quite awhile now...prices were high even with us drilling. The news directly reports that the east is purposely trying to put Russia and the U.S. out of selling oil and that the east is the ones buying much of it.
I'm just concerned how much they actually do control. |
|
| |
|
 Ms. Marine
Posts: 4626
Location: Texas | We are paying less because of the Keystone Pipeline. Don't forget that Obama said that it would NOT reduce gas prices... |
|
| |
|
Extreme Veteran
Posts: 333
| Thought the keystone vote failed.. |
|
| |
|
 Playing the Waiting Game
Posts: 2304
| So Obummer can claim LOOK what I did... and we end up with Hilary in office... |
|
| |
|
 Knowledge is Power
Posts: 4051
Location: wherever my daughter's running | I am thinking the Keystone Pipeline was voted down also. I got regular gas for 1.86 today. I must admitt while I was filling up I was wondering what was going on with gas prices and concerned about where this might be headed. I have felt for a long time that we would never see prices below 2.00. Then Wham prices started falling. |
|
| |
|
Extreme Veteran
Posts: 333
| I would think someone would want to take some credit for the low prices but that's not happening....if it's all about production, diesel prices should also fall accordingly..and that's not near as fast as the gas prices..so I don't think production is all that up.
Just seems quiet about the gas situation. I for one wont bank on the low prices.. |
|
| |
|
 Proud to be Deplorable
Posts: 1929
| powerstroke power - 2015-01-03 7:35 PM
Thought the keystone vote failed..
That was for the second pipe line. The first keystone line has been pumping for a few years now. |
|
| |
|
Extreme Veteran
Posts: 333
| jbhoot - 2015-01-03 7:52 PM
powerstroke power - 2015-01-03 7:35 PM
Thought the keystone vote failed..
That was for the second pipe line. The first keystone line has been pumping for a few years now.
Thank you...but the gas prices fell in the past 6 months...a year ago it was over $4/gallon.
I hope it's nothing as we produce 50% of what we consume.
I did just watch a movie that seems to play all this out (which is weird)..how certain governments can bankrupt based on the price of oil. That's only in Hollywood I'm sure. |
|
| |
|
 No Tune in a Bucket
Posts: 2935
Location: Texas | powerstroke power - 2015-01-03 7:59 PM jbhoot - 2015-01-03 7:52 PM powerstroke power - 2015-01-03 7:35 PM Thought the keystone vote failed.. That was for the second pipe line. The first keystone line has been pumping for a few years now. Thank you...but the gas prices fell in the past 6 months...a year ago it was over $4/gallon. I hope it's nothing as we produce 50% of what we consume. I did just watch a movie that seems to play all this out (which is weird )..how certain governments can bankrupt based on the price of oil. That's only in Hollywood I'm sure.
It would not hurt my feelings if the oil prices bankrupted the Russian government and Putin. |
|
| |
|
 Chasin my Dream
Posts: 13651
Location: Alberta | The only thing that concerns me about low gas prices is potential loss of jobs in the oilfield.... |
|
| |
|
Proud to be Deplorable
Posts: 1929
| powerstroke power - 2015-01-03 7:59 PM
jbhoot - 2015-01-03 7:52 PM
powerstroke power - 2015-01-03 7:35 PM
Thought the keystone vote failed..
That was for the second pipe line. The first keystone line has been pumping for a few years now.
Thank you...but the gas prices fell in the past 6 months...a year ago it was over $4/gallon.
I hope it's nothing as we produce 50% of what we consume.
I did just watch a movie that seems to play all this out (which is weird )..how certain governments can bankrupt based on the price of oil. That's only in Hollywood I'm sure.
Right now this is all about OPEC trying to lower the price per barrel to slow down the production of higher priced oil reserves. It is their way of playing high stakes poker. It will slow down some producers in the US and Alberta. But it could bankrupt Russia since their entire economy is based on oil. Gas prices will stay low until production slows. It's about supply and demand right now supply is high. |
|
| |
|
Expert
Posts: 1314
Location: North Central Iowa Land of white frozen grass | It's all about supply and demand. The world runs on diesel fuel. The US runs on gas. We export a lot of diesel. But for every gallon of diesel you make you get so much gas. Well when the storage tanks are full of gas because the american people have bought newer cars that get better milage and we are starting to not drive as many miles a year per car. You have to drop the price of gas to get movement of the product so you can make more diesel. I am sure they are subsidizing the price of gas with the price of diesel. We buy way more crude oil from Canada and Mexico than we do from the middle east by far. |
|
| |
|
 Total Germophobe
Posts: 6437
Location: Montana | In my area this happens EVERY SINGLE YEAR. It is like someone else has said, supply and demand. Up here the demand in the summer is much greater because we have a lot of people going through here (i.e. tourists) on their way to National Parks...the gas prices automatically start going up about the end of April, then once Labor Day is over and done with, they start going down again. It has been the same cycle over and over and over again. But in the winter here, for the most part, it is too cold and snowy to go very far so nobody does.  |
|
| |
|
Extreme Veteran
Posts: 464
| Saudi drove the price down intentionally. The fools around them, finance their wars with the money derived from oil. Less money, less fighting. It's having some serious implications with Russia, and that's something we need to keep an eye on. They were also hoping to curb our interest in fracking. |
|
| |
|
 Nicknameless
Posts: 4565
Location: I can see the end of the world from here! | Watch...federal fuel taxes are getting ready to go up...that's what it's about. You know, they squandered the taxes and now we need to re-build bridges and roads...greed, from our own government. |
|
| |
|
 I Prefer to Live in Fantasy Land
Posts: 64864
Location: In the Hills of Texas | I thought someone said that the fuel tax in California went up Jan. 1. Obama wants $5.00 a gallon gas but he will gladly take credit for the drop in fuel prices. It's how politicians roll.. |
|
| |
|
 Famous for Not Complaining
Posts: 8848
Location: Broxton, Ga | Also many are saying the lower fuel prices reflect a slowing world economy............. |
|
| |
|
Elite Veteran
Posts: 865
| When we are not at war with a lot of ground troops seems like oil drops |
|
| |
|
Elite Veteran
Posts: 865
| Of course dueche bag Obama (sorry!) will take credit for it all |
|
| |
|
Nut Case Expert
Posts: 9305
Location: Tulsa, Ok | The US currently has a good supply of domestically produced oil. The only issue is that it comes thru enhanced recovery which means that it is not cheap to produce. What that means that OPEC can no longer employ the tactic of cutting back production to decrease supply and drive the price back up. BUT what they can do is keep production high in an attempt to force US companies to stop drilling for and producing higher cost crude. Meanwhile they continue to pump oil does not require high cost methods of recovery. They figure they can withstand cheap oil prices longer than the US can.
Edited by SC Wrangler 2015-01-04 10:19 AM
|
|
| |
|
 Expert
Posts: 1857
| SC Wrangler - 2015-01-04 10:18 AM
The US currently has a good supply of domestically produced oil. The only issue is that it comes thru enhanced recovery which means that it is not cheap to produce. What that means that OPEC can no longer employ the tactic of cutting back production to decrease supply and drive the price back up. BUT what they can do is keep production high in an attempt to force US companies to stop drilling for and producing higher cost crude. Meanwhile they continue to pump oil does not require high cost methods of recovery. They figure they can withstand cheap oil prices longer than the US can.
That's correct, the US shale producers look into the longevity of a hole, most holes will produce for upwards of 10-15 years. The issue is that the US methods of extracting(hydraulic fracking) is more exspensive and when oil falls below $60 a barrel most companies can't afford to drill.(reality: CEO's aren't going to take a chance of not having that fat bonus at the end of the year and wil cut production to avoid losing it, they wouldn't lose any money to keep drilling they just wouldn't be making the profit margin they have become so accustomed to). Smaller companies are going to be bought out by these larger companies; bp, continental, etc., this is a good opportunity for those companies to monopolize US drilling, which I think is going to happen to some extent. |
|
| |
|
 Expert
Posts: 4121
Location: SE Louisiana | I live in a (small) oil town and I remember about 3 years ago word was going around the people searching out in the GoM had sounded some huge oil reserves in deep water and drilling rigs were being built. I'd say the harvest is coming in or will be soon. |
|
| |
|
 Wishing I were a Wildcat
Location: 'Hawk Country | FlyingJT - 2015-01-04 11:09 AM SC Wrangler - 2015-01-04 10:18 AM The US currently has a good supply of domestically produced oil. The only issue is that it comes thru enhanced recovery which means that it is not cheap to produce. What that means that OPEC can no longer employ the tactic of cutting back production to decrease supply and drive the price back up. BUT what they can do is keep production high in an attempt to force US companies to stop drilling for and producing higher cost crude. Meanwhile they continue to pump oil does not require high cost methods of recovery. They figure they can withstand cheap oil prices longer than the US can. That's correct, the US shale producers look into the longevity of a hole, most holes will produce for upwards of 10-15 years. The issue is that the US methods of extracting (hydraulic fracking ) is more exspensive and when oil falls below $60 a barrel most companies can't afford to drill. (reality: CEO's aren't going to take a chance of not having that fat bonus at the end of the year and wil cut production to avoid losing it, they wouldn't lose any money to keep drilling they just wouldn't be making the profit margin they have become so accustomed to ). Smaller companies are going to be bought out by these larger companies; bp, continental, etc., this is a good opportunity for those companies to monopolize US drilling, which I think is going to happen to some extent.
People around here are saying the oil industry drove prices down in the US to try and drive alternative energy out of business, then, without them as competition, drive the oil prices back up. Doing so, has now ticked off OPEC, which goes with what is being said above. |
|
| |
|
 Dancing in my Mind
Posts: 3062
Location: Eastern OH but my heart is in WV | missroselee - 2015-01-03 7:22 PM
Because we started using our own resources for oil....it forced the middle east to drop prices.
That's all there is to it. They are hoping to put everybody else out of business so they can go back to being the main producers of oil supply.
What she said. The middle East is NOT happy that we are producing. A lot of the gas & oil industries in America are young or up and coming. The middle east are billionaires, so they can afford to drop the prices with the hopes of shutting down American companies. I am living right in the middle of gas boom here in Ohio. The second largest gas processing plant in this country is 10 minutes from our home in one direction with another large one 10 minutes in the opposite direction. Both built within the last three years. Heck the one just started operating this past summer. So while the established middle east companies can drop the prices and take the hit, the American companies can not afford to do so yet. In the long run we will be paying for the low gas prices today.
Edited by Rolling J 2015-01-04 8:09 PM
|
|
| |
|
 Elite Veteran
Posts: 683
Location: Ohio | Anyone remember this? https://www.youtube.com/watch?v=_zfKrW0acWs |
|
| |
|
Elite Veteran
Posts: 683
Location: Ohio | http://www.usatoday.com/story/money/markets/2015/01/06/stocks-tuesd...
|
|
| |
|
 Accident Prone
Posts: 22277
Location: 100 miles from Nowhere, AR | Just read an article talking about how the oil companies were hedged on the market and making a lot of money off their short positions. (Sell high on futures, buy back low...all on paper, of course) |
|
| |
|
 Midget Lover
Location: Kentucky | $1.96 Sunday, $2.39 yesterday, $1.93 this morning. Bipolar gas prices. |
|
| |
|
 Do You Feel Lucky Punk?
Posts: 3156
Location: NM...the Land of Manana | Just saw on one of the politigab shows this weekend that one of the conditions Dems want to put on the Keystone pipeline is that all oil sent down it will stay in the US. |
|
| |
|
Draw the Line
Posts: 1371
Location: Too Far North | Concerned? I Don't Know. I am concerned that American oil industry jobs will be seriously affected if the per barrel price continues to drop.
What I do know of the oil industry is only about the oil patch in the ND Bakken formation. The four core counties in the bakken are continuing to pump oil. Different wells have different break even points, some are as low as 27 and 42, some up to 54 and in the fringe counties some are as high as in the 70's for a break even. The fringe counties have already cut back production and are not exploring new wells at this time. So in some areas this is already affecting jobs and will continue to do so if the price continues to drop. Word on the street in the Bakken is the Saudi's can afford to play this game for around 1 year. Their economy is set right now on 80 dollars per barrel oil. That is not their break even point, that is very low, very very low. This is the price the Saudi economy needs to keep their social progams and economy running at the current rate. They can afford to undercut that price for around a year and subsidise it with money already in the bank. What happens after that ? idk. They want to break the Russian and American oil fields and keep a monopoly as they have had in the past. This isn't official news, just what I hear from those I talk to in the oil patch. Who knows if that is correct, maybe someone just starting rumors, but whatever.
We buy far more oil from Argentina than we do from Saudi BTW.
The Keystone oil pipeline is currently in it's 4th phase (that's the one that Obama is blocking) 3 phases have already gone through, carrying Canadian oil to refineries in the US and some is shipped out. It is VERY dirty oil tar sands oil, that is the reason it is being blocked by Obama and conservationist groups. It needs a lot more refining and burns dirtier, creating more pollution. |
|
| |
|
Miracle in the Making
Posts: 4013
| i still say 1 bushel wheat or corn or soybean=1 barrel crude no problem |
|
| |
|
 Ace Ventura Pet Detective
Posts: 2409
Location: Wisconsin | I wont be concerned unless it jumps back up to almost 5 dollars a gallon before i leave to drop horses in Texas end of the month!!
Edited by nettieb3 2015-01-08 9:37 PM
|
|
| |
Does the price of gas concern you!