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Message: The oil and gas markets
Changed By: Bruce In Philly (2000 S Boxster, now '09 C2S)
Change Date: February 16, 2015 12:21PM
The oil and gas markets
Change Date: February 16, 2015 12:21PM
The oil and gas markets
[quote="mikefocke, '01S Sanford, NC"] I'm in a county that has potential for fracking. The economics of that have suddenly gone to heck and exploration scheduled for this year is on hold.[/quote]
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $33.76 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. (and I suspect the electric car will die out). Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $33.76 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. (and I suspect the electric car will die out). Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly
Changed By: Bruce In Philly (2000 S Boxster, now '09 C2S)
Change Date: February 16, 2015 12:17PM
The oil and gas markets
Change Date: February 16, 2015 12:17PM
The oil and gas markets
[quote="mikefocke, '01S Sanford, NC"] I'm in a county that has potential for fracking. The economics of that have suddenly gone to heck and exploration scheduled for this year is on hold.[/quote]
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $31.38 $33.76 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $31.38 $33.76 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly
Original Message
Author: Bruce In Philly (2000 S Boxster, now '09 C2S)Date: February 16, 2015 12:04PM
The oil and gas markets
[quote="mikefocke, '01S Sanford, NC"] I'm in a county that has potential for fracking. The economics of that have suddenly gone to heck and exploration scheduled for this year is on hold.[/quote]
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $31.38 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly
Despite this, nat gas is in our future big time. The reason for the HOLD you speak of is because the Saudi's lowered their prices and we have a glut of gas production. This is classic. The issue is not oil prices but oil (and gas) production costs. This is something the greens don't get. The cost to the Saudi's to put a barrel of oil into a tanker is around $5 iirc. The reason they sold it for $100 is because they could and not because the world was running out or other silly crap like that. Now that nat gas is coming on line all around the world and in the USA in particular, and it is cheaper to produce (i.e., cost per "barrel"), we pump (or frack).
So... what do you think the Saudis or any producer with low costs will do? Say "Aw shucks, it was good while it lasted."? No way.... they just lower their prices and choke the competition. This is what is happening. Yes, Hitler... er I mean Putin is another factor as they want to choke him (and ISIS) of revenues, but fundamentally, they are just protecting their market.
So.... what is the cost per barrel equivalent oil to nat gas in the USA? About $31.38 a "barrel" for gas. That is low. YEEEEHAAAA!!! I love it. As of today the global price of a barrel of oil is selling around $55 per barrel. So..... exploration and production in the USA is slowing but this is only temporary. Why is it slowing? Two reasons: 1) their is a glut of production despite quickly growing demand and 2) Fear of the delta between alternatives, the price of oil, will continue to come down as oil producers protect their markets.
There are many wonderful consequences of low energy prices in the USA..... did you know companies are building chemical plants again in the USA??? We've been told by the conservative perverts at Fox News (they are not conservative, they are nuts) that we don't have chemical plants anymore because of government regulation and power unions both driving up costs. No, it was the feedstock of business: energy prices that chased them away. Now, with low energy prices and and expectation that they will stay that way long term, the construction and chemicals are back (I also invested in FMC because of this).
So........ gasoline prices will remain low for the next 10 to 20 years at least. Regardless if we will drive nat gas cars or not, the feedstock of business, energy prices, will remain low due to USA fracking and improved oil extraction methods. Get your production costs down and "they" will come.
We are in for a bright future. Seriously, I believe we are starting a historic growth phase. Oh and don't let any politician or party tell you they did it...... BS.
[url=http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6]USA Dept of Energy Nat Gas to Oil equivelent pricing[/url]
Enjoy,
Bruce in Philly