The news I am reading now is saying it will take 5 years for the prices
to come back up... :)
Travis
On 1/14/2015 4:30 AM, Forrest Christian (List Account) wrote:
There's an old, insightful joke about "what is the best price to sell
barrels of oil for", which states that it's something like "$100,
$100, $100, $100, $20, $20, $100, $100, $100....."
At $100 everyone is eager to turn up production and do things like
hydraulic fracturing. At $20, there's a lot of hurt in those same
industries. There is a lot of political and economic force in the
ability to effectively increase and decrease the rarity of a
commodity, and as a side effect, it's price, with a turn of a valve.
With additional US sources coming online, and OPEC deciding not to cut
production, there's now a glut in the market. The question is ... at
what level is this sustainable stateside? I haven't seen a good
analysis of the impact of these lower crude prices on domestic
production and more importantly our willingness to invest in growth of
our production capabilities.
Personally, I have mixed feelings. I like the price of gas when I
get to the pump, but I also sell into the oil industry, which I sure
hope continues to drill wells, since it's very good for my bottom line.
-forrest
On Tue, Jan 13, 2015 at 6:58 PM, Caleb Knauer <cknauer.li...@gmail.com
<mailto:cknauer.li...@gmail.com>> wrote:
Yep. Shuts down the oil sands (for a bit), slaps Russia/Venezuela in
the face, cranks down on the mid-tier producers like Nigeria trying to
squeeze into the market, etc. It's multiple birds with one stone. US
oil production will drop, oil sands bubble will pop, and all sorts of
gloom and doom until prices naturally go back up and we spin up
production again. The oil guys will take a hammering and I feel bad
for them, but all bubbles burst. A lot of Americans will have a net
benefit. Macroeconomics is complex.
On Tue, Jan 13, 2015 at 8:40 PM, Jason McKemie
<j.mcke...@veloxinetbroadband.com
<mailto:j.mcke...@veloxinetbroadband.com>> wrote:
> From what I've read the drop is pretty much exclusively because
of OPEC.
>
>
> On Tuesday, January 13, 2015, Erich Kaiser
<er...@northcentraltower.com <mailto:er...@northcentraltower.com>>
> wrote:
>>
>> I think a lot of the low prices are due to abundance of oil
right here in
>> the US from Fracking and Tar sands from Canada. I bet
eventually when the
>> additional pipeline capacity is completed it may drive things
even lower,
>> but that is just my thought.
>>
>> It would be nice if they could do the same with grain.
>>
>>
>> On Tue, Jan 13, 2015 at 12:53 PM, That One Guy
<thatoneguyst...@gmail.com <mailto:thatoneguyst...@gmail.com>>
>> wrote:
>>>
>>> I dont know how petroleum stores, the costs of operating, etc.
But I look
>>> at it as right now being a great time to get in on it, when
the rubber band
>>> snaps, you would already be at peak production capacity,
without the export
>>> and shipping to get it to its destination, in North America at
least. This
>>> is an artificially deflated market, it cant be sustained since
it is
>>> inherently and artificially inflated market.
>>>
>>> On Tue, Jan 13, 2015 at 12:19 PM, CBB - Jay Fuller
>>> <par...@cyberbroadband.net <mailto:par...@cyberbroadband.net>>
wrote:
>>>>
>>>>
>>>> The investment has already been made to build the wells. I
know it
>>>> would suck, but why not shut them down until the price goes
up again, then
>>>> just resume production? Even under new ownership? Doesn't
sound like a
>>>> permanent problem to me...
>>>>
>>>>
>>>> ----- Original Message -----
>>>> From: Bill Prince
>>>> To: af@afmug.com <mailto:af@afmug.com>
>>>> Sent: Tuesday, January 13, 2015 10:23 AM
>>>> Subject: Re: [AFMUG] Gas Prices
>>>>
>>>> It's Saudi Arabia trying to squeeze out all the marginal
producers.
>>>> Initially it will be Russia and some of the other marginals
like Iraq &
>>>> Iran.
>>>>
>>>> Pretty sure the shale oil and tar sands guys are hurting big
time right
>>>> now.
>>>>
>>>> bp
>>>> <part15sbs{at}gmail{dot}com>
>>>>
>>>> On 1/13/2015 8:03 AM, Chuck McCown wrote:
>>>>
>>>> I wonder what is really driving the price down. Fracking, OPEC
>>>> diaspora, CAFE improvements, Russia problems ???
>>>>
>>>> From: Jeremy
>>>> Sent: Tuesday, January 13, 2015 8:54 AM
>>>> To: af@afmug.com <mailto:af@afmug.com>
>>>> Subject: Re: [AFMUG] Gas Prices
>>>>
>>>> Thanks Obama! (he gets blamed for EVERYTHING, right??)
>>>>
>>>> On Tue, Jan 13, 2015 at 8:41 AM, Josh Luthman
>>>> <j...@imaginenetworksllc.com
<mailto:j...@imaginenetworksllc.com>> wrote:
>>>>>
>>>>> Same up here in Ohio.
>>>>>
>>>>> Josh Luthman
>>>>> Office: 937-552-2340 <tel:937-552-2340>
>>>>> Direct: 937-552-2343 <tel:937-552-2343>
>>>>> 1100 Wayne St
>>>>> Suite 1337
>>>>> Troy, OH 45373
>>>>>
>>>>> On Jan 13, 2015 10:35 AM, "joseph marsh"
<bwireless...@gmail.com <mailto:bwireless...@gmail.com>>
>>>>> wrote:
>>>>>>
>>>>>> 1.75 here in my area
>>>>>>
>>>>>> On Jan 13, 2015 9:35 AM, "Vlad Sedov" <v...@atlasok.com
<mailto:v...@atlasok.com>> wrote:
>>>>>>>
>>>>>>> $1.50 to $1.55 in oklahoma city.. crazy.
>>>>>>>
>>>>>>> vlad
>>>>>>>
>>>>>>> On 1/13/2015 9:32 AM, Travis Johnson wrote:
>>>>>>>>
>>>>>>>> I never thought I would see gas prices this low. We have
stations at
>>>>>>>> $1.71/gallon in our area right now. :)
>>>>>>>>
>>>>>>>> Travis
>>>>>>>
>>>>>>>
>>>>
>>>>
>>>>
>>>
>>>
>>>
>>> --
>>> All parts should go together without forcing. You must
remember that the
>>> parts you are reassembling were disassembled by you.
Therefore, if you can't
>>> get them together again, there must be a reason. By all means,
do not use a
>>> hammer. -- IBM maintenance manual, 1925
>>
>>
>
