There was a pretty good discussion of this the other day on PBS.
Every producer has a profit point, and older traditional wells need to
keep producing until they are done. Stop pumping on one of those wells,
and it apparently will kill the well without a huge expense in re-starting.
Fracking wells are different, they are generally short-term, and if the
profit is too low, they simply stop drilling new wells until the prices
recover.
One guy mentioned that the big expense is starting the well. Once it's
producing, the cost per barrel is next to nothing.
--
bp
<part {dash} 15 {at} SkylineBroadbandService {dot} com>
On 12/24/2014 8:20 AM, Ken Hohhof via Af wrote:
It’s also an economics lesson for any of us who think about starting a
price war with the industry cost leader, like the cable companies.
I keep hearing the Saudis need oil to be $100, but I don’t see why.
They just pump the stuff, the other guys are drilling and fracking.
They probably need it to be $100 to support their economy and
lifestyle since they don’t produce anything but oil, but they are
probably profitable at $10.
*From:* Mark Radabaugh via Af <mailto:[email protected]>
*Sent:* Wednesday, December 24, 2014 10:04 AM
*To:* [email protected] <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
It's just a little geopolitical Christmas present.
The old joke - what's the best price of oil for OPEC? $100, $100,
$100, $50, $100.
When the price drops to $50 it kills all of the speculative drilling
and investment in alternative energy, and then OPEC raises the price
back and ensures they stay relevant.
The low oil price also punishes a variety of political enemies -
Russia, ISIS, Iran, and a couple of South American countries.
The low price won't last, but it's nice for a while and plays into a
number of political battles.
Mark
On 12/24/14 10:58 AM, Bill Prince via Af wrote:
Wonder what the play is there. How long will gas prices stay this
low? And how low will they go? Saudi Arabia is in the drivers seat
for now. Russia and a few of the OPEC nations are getting it in the
shorts.
Someone will blink. I'm betting that gas will turn around in 3-6 months.
--
bp
<part {dash} 15 {at} SkylineBroadbandService {dot} com>
On 12/24/2014 7:11 AM, Chuck McCown via Af wrote:
Yep:
http://www.cmegroup.com/trading/energy/refined-products/rbob-gasoline.html
*From:* Chuck McCown <mailto:[email protected]>
*Sent:* Wednesday, December 24, 2014 8:10 AM
*To:* [email protected] <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
I wonder if you can purchase gasoline futures?
*From:* Josh Luthman via Af <mailto:[email protected]>
*Sent:* Wednesday, December 24, 2014 7:59 AM
*To:* [email protected] <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
Get a few 55 gallon drums. That's what we did around 2006.
Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373
On Dec 24, 2014 9:44 AM, "Chuck McCown via Af" <[email protected]
<mailto:[email protected]>> wrote:
I wish I had a 50,000 gallon tank and I wish that gas did not
have a shelf life.
*From:* Jaime Solorza via Af <mailto:[email protected]>
*Sent:* Tuesday, December 23, 2014 9:51 PM
*To:* Animal Farm <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
Gas at 1.87 a gallon today
Jaime Solorza
On Dec 23, 2014 4:20 PM, "Jaime Solorza via Af" <[email protected]
<mailto:[email protected]>> wrote:
As long as they leave my shrubbery alone.
Jaime Solorza
On Dec 23, 2014 1:21 PM, "Chuck McCown via Af" <[email protected]
<mailto:[email protected]>> wrote:
I think we still have a citadel or two, don’t we?
*From:* Ken Hohhof via Af <mailto:[email protected]>
*Sent:* Tuesday, December 23, 2014 1:12 PM
*To:* [email protected] <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
Well, North Korea threatened to blow up our “citadels”
in retaliation.
“Tragedy is when I cut my finger. Comedy is when you
fall into an open sewer and die.”
- Mel Brooks
*From:* Jaime Solorza via Af <mailto:[email protected]>
*Sent:* Tuesday, December 23, 2014 1:48 PM
*To:* Animal Farm <mailto:[email protected]>
*Subject:* Re: [AFMUG] OT: The Interview to be shown here...
Polemic movie. I thought it was a comedy
Jaime Solorza
On Dec 23, 2014 12:34 PM, "Gino Villarini via Af"
<[email protected] <mailto:[email protected]>> wrote:
Yes, it is the top local newspaper
Gino A. Villarini
@gvillarini
On Dec 23, 2014, at 3:12 PM, Mike Hammett via Af
<[email protected] <mailto:[email protected]>> wrote:
Legit news source?
-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com
<https://www.facebook.com/ICSIL><https://plus.google.com/+IntelligentComputingSolutionsDeKalb><https://www.linkedin.com/company/intelligent-computing-solutions><https://twitter.com/ICSIL>
------------------------------------------------------------------------
*From: *"Gino Villarini via Af" <[email protected]
<mailto:[email protected]>>
*To: *[email protected] <mailto:[email protected]>
*Sent: *Tuesday, December 23, 2014 1:09:13 PM
*Subject: *[AFMUG] OT: The Interview to be shown
here...
http://www.elnuevodia.com/puertoricoestrenaralapolemicapeliculatheinterview-1915932.html
News in spanish, but local chain to screen the
Movie… who gots the cojo… now??
Gino A. Villarini
President
Aeronet Wireless Broadband Corp.
www.aeronetpr.com <http://www.aeronetpr.com>
@aeronetpr
--
Mark Radabaugh
Amplex
[email protected] 419.837.5015 x 1021
