Anyone else hoping gas prices rise again?

[3fifty7]

I'll preface by saying I have family working and owning businesses in several aspects of the oilfield. And understand the oilfield is a major contributor to our local economy.

Up until the mid 70s a barrel of oil and a barrel of rice were hanging around $20. Oilmen and farmers alike were able to make money at that time at those prices. Since, oil has doubled many times over to heights near $150 a barrel and now that it dips below $50 we should be worried about oil companies? A barrel of rice has briefly risen to above $30 a barrel but has again fallen to below $20 a barrel.
So if we could tie the price of a barrel of rice to the price of a barrel of oil I'd love to see it rise. Until then high oil prices do me no good at all.

 

[Neil09]

In response to OP - Yes I wish the prices would rise somewhat, I passed first round of layoffs haha!!

My company didn't layoff yet. They claimed that it isn't going to happen. We have land and offshore coil units, I stay on land beings I have my CDL, so if they start, I expect to be one of the last. They did change our health insurance for this year, it's cheaper with less coverage. Their reason was so they don't have to layoff, which I'm happy with.

 

[A5Mag12]

I'm sorry if your at a point where a few bucks at the pump ends your suffering. Let me know when it's my turn again. Thanks

Not a problem for me. Haven't suffered since,,,,,,well,,,,ever.

 

[A5Mag12]

When GM shutdown the Shreveport plant everybody said good for those greedy bastards. Well this greedy bastard was preparing for it since before they even opened the doors on the place and will be just fine with $1.00 a gallon gas or whatever a gallon gas. But high fuel cost make everything people have to spend money for in this country cost more money at the same time it's taking more and more just to get to work. If a relatively small few in number oil and gas workers have to find other work so the rest of the country has cheaper goods and services it is a big plus overall. When people have more money to spend every one does better.

 

[Jack]

The price of foreign oil will never be less per barrel than the cost of harvesting our own per barrel (with the exception of fracking and other more expensive ways of harvesting).

This is simply wrong. We are cutting back on domestic production because it isn't profitable to get some oil out of the ground now, while it was at $100 a barrel.

 

[rasputin]

This is simply wrong. We are cutting back on domestic production because it isn't profitable to get some oil out of the ground now, while it was at $100 a barrel.

+1

I work very closely with the pricing sector of the industry and this is 100% accurate.

 

[A5Mag12]

This is simply wrong. We are cutting back on domestic production because it isn't profitable to get some oil out of the ground now, while it was at $100 a barrel.

And that oil will still be there waiting for the price to go back up. It is good to use up the world's oil on the cheap while keeping as much of our own still in the ground for future use.

 

[Jack]

And that oil will still be there waiting for the price to go back up. It is good to use up the world's oil on the cheap while keeping as much of our own still in the ground for future use.

Exactly. If I was in the position, I would be filling the strategic oil reserve and trying to build more containers.

 

[Danny Abear]

Exactly. If I was in the position, I would be filling the strategic oil reserve and trying to build more containers.

I thought the same thing when I passed by the St. James SPR today

 

[Barney88PDC]

The majors already have that capability and are doing just that. Rumor has it Shell MARS is flowing to the salt dome instead of down the productions line. They will wait to sell until the price is right. Then pull it out the cavern and flow to the sell line.

Supply will correct itself one way or the other. Either by OPEC cutting supply or the US slowing production because the small time players cannot drill at these low prices. Example the TMS is basically dead and operators have and are pulling out. So with fewer wells coming online and existing wells being depleted everyday US oil production dwindles. The second route takes longer and affects the US and local economy but the prices go back up once supply is cut, it just takes longer than option 1. Either way demand increases and with it the price goes back up. It's basically poker on a grand scale. Middle East vs. the world with Russia sitting in the corner about to throw a punch.

If the US Oil & Gas companies had balls they would get together and have a 30 day shutdown of ALL FLOW down the sell line. Wall Street would ****, prices would sky rocket, and they could sell the same oil for double a month later and not lose a dime. I'm sure the repercussion would be a Senate Hearing a few months later with possible jail time for some made up crap for throwing the economy into disarray.

 

[Jack]

The majors already have that capability and are doing just that. Rumor has it Shell MARS is flowing to the salt dome instead of down the productions line. They will wait to sell until the price is right. Then pull it out the cavern and flow to the sell line.

Supply will correct itself one way or the other. Either by OPEC cutting supply or the US slowing production because the small time players cannot drill at these low prices. Example the TMS is basically dead and operators have and are pulling out. So with fewer wells coming online and existing wells being depleted everyday US oil production dwindles. The second route takes longer and affects the US and local economy but the prices go back up once supply is cut, it just takes longer than option 1. Either way demand increases and with it the price goes back up. It's basically poker on a grand scale. Middle East vs. the world with Russia sitting in the corner about to throw a punch.

If the US Oil & Gas companies had balls they would get together and have a 30 day shutdown of ALL FLOW down the sell line. Wall Street would ****, prices would sky rocket, and they could sell the same oil for double a month later and not lose a dime. I'm sure the repercussion would be a Senate Hearing a few months later with possible jail time for some made up crap for throwing the economy into disarray.

I agree with all of this except the Middle East vs the world. I think this is more like the Saudis sticking it to Russia.

 

[Emperor]

umm I'll take 7% all day long with a smile on my face.

No BS! I would be retired already!

 

[3fifty7]

"Supply will correct itself one way or the other. Either by OPEC cutting supply or the US slowing production because the small time players cannot drill at these low prices."

Correct itself to what?
Was $150 a barrel not the extreme and the market has been corrected to $50 a barrel.

Or is a higher price always correct?

 

[Barney88PDC]

IMO West Texas Intermediate at $90/bbl +/- is about right.

From a guy riding a John Deere 10-12 hours a day that drinks Diesel I get it. You want low fuel, low fertilizer and high corn, soy bean, cotton prices. The industry in Bunkie is not largely oil field. Everyone wants whats best for them, it's human nature and you have to take care of your own, I get it. In your area I don't blame you based on your local economy and profession. The loggers burn alot of Diesel too in those machines. That's why I specified South Louisiana.

 

[Emperor]

"Supply will correct itself one way or the other. Either by OPEC cutting supply or the US slowing production because the small time players cannot drill at these low prices."

Correct itself to what?
Was $150 a barrel not the extreme and the market has been corrected to $50 a barrel.

Or is a higher price always correct?

Wasn't it just a few decades ago the Chicken Little's in the environmental whacko brigades said the Earth was about to run out of oil? Now there is so much we can't afford to drill for it? Huh?

To those of you that believe oil is the only economic driver in Louisiana; you are only correct because that is the way big oil set it up. The cleanest most efficient way to lessen oil dependency in this country is nuclear energy. If we allowed that sector to expand as it focuses on the technology to maintain the ultimate in safety precautions to keep it safe at all times, you would off set a lot of Louisiana's dependency on the oil industry as an economic driver.

And just like an investment portfolio, Louisiana had best diversify the economic drivers; because oil by itself ain't going to get it forever.

 

[Emperor]

This is another reason why this game makes no sense. What are some of these leeches doing with this much money on a damn gallon of gas? And as you can see, diesel is a "con-job!"

State	Gasoline tax (includes federal tax of 18.4¢/gal)	Diesel tax (includes federal tax of 24.4¢/gal)
US (Volume-Weighted) Average	49.9	55.4
Alabama	39.3	46.3
Alaska	30.8	37.1
Arizona	37.4	51.4
Arkansas	40.2	47.2
California	71.3	74.0
Colorado	40.4	44.9
Connecticut	67.7	79.3
Delaware	41.4	46.4
District of Columbia	41.9	47.9
Florida	54.4	56.8
Georgia	45.9	55.3
Hawaii	66.5	74.5
Idaho	43.4	49.4
Illinois	57.5	69.3
Indiana	59.2	75.7
Iowa	40.4	47.9
Kansas	43.4	51.4
Kentucky	48.5	51.5
Louisiana	38.4	44.4
Maine	48.4	55.6
Maryland	45.4	52.2
Massachusetts	44.9	50.9
Michigan	37.4	39.4
Minnesota	47.0	53.0
Mississippi	36.8	42.4
Missouri	35.7	41.7
Montana	46.2	52.9
Nebraska	45.7	51.1
Nevada	51.6	53.0
New Hampshire	40.6	46.6
New Jersey	32.9	41.9
New Mexico	37.3	47.3
New York	68.3	74.8
North Carolina	56.2	62.2
North Dakota	41.4	47.4
Ohio	46.4	52.4
Oklahoma	35.4	38.4
Oregon	49.5	54.7
Pennsylvania	70.0	89.7
Rhode Island	51.4	57.4
South Carolina	35.2	41.2
South Dakota	40.4	48.4
Tennessee	39.8	42.8
Texas	38.4	44.4
Utah	42.9	48.9
Vermont	50.5	55.4
Virginia	35.7	50.5
Washington	55.9	61.9
West Virginia	54.1	60.1
Wisconsin	51.3	57.3
Wyoming	42.4	48.4

 

[VeedUp]

I didn't read every post but read most, and I see some people over reacting some. The only layoffs I've seen personally or herd of are the same type of construction layoffs typical for this time of year, and most of them will all be back to work before next month. I have been working in the petro-chemical field for the last 11 years, this will change as it always does and market will correct it self. But the only thing that doesn't look good right now is the budgets, things where budgeted at much higher profit margin and right now that simply isn't the case, but at least with the lower prices the demand is going up and eventually so will the price.

 

[323MAR]

I'll preface by saying I have family working and owning businesses in several aspects of the oilfield. And understand the oilfield is a major contributor to our local economy.

Up until the mid 70s a barrel of oil and a barrel of rice were hanging around $20. Oilmen and farmers alike were able to make money at that time at those prices. Since, oil has doubled many times over to heights near $150 a barrel and now that it dips below $50 we should be worried about oil companies? A barrel of rice has briefly risen to above $30 a barrel but has again fallen to below $20 a barrel.
So if we could tie the price of a barrel of rice to the price of a barrel of oil I'd love to see it rise. Until then high oil prices do me no good at all.

The inability of oil companies to make good profits on $50/barrel is therefore the fault of the Federal Government. All of the excessive deficit spending results in inflation. The inflation is caused by passing on the costs of borrowing to consumers. So we will not see the full benefits of reduced oil prices because the incompetent Federal Government can not fund it's frivolous spending without excessive borrowing.

 

[Magdump]

Well....I'm sure someone will debunk this story, because it's prolly just a bunch of hype....
But I'll just leave it right here.

http://www.usatoday.com/story/money/markets/2015/01/06/deep-water-oil-production-gulf/20752155/

 

[Jack]

Skimmed the first few paragraphs. Not sure if this was covered later, but chevron made another discovery out there.