OIL PRICE****

Chadeaux · Jan 21, 2016

Mackaydon said:
Rosco,
K I agree: Karr Ingham, an Amarillo-based economist who works for the Texas Alliance of Energy Producers said in November that job losses in Texas would hit 60,000 by the end of 2015 and 70,000 by mid-2016 if oil prices rose to the mid-$40 range, which he said would stop the rig count and job declines.But oil closed Wednesday (yesterday) at $26.55 a barrel.
So the oil and gas field and its related industries will lose 80,000 jobs from January 2015 to June 2016, if Ingham’s crystal ball is accurate.
Don......

It is a threat, nothing more.

THINK! Exxon, Shell, BP, et al - they are not going to take a bath because oil prices are down. The only way that would happen is at current crude prices, were they to bring the price down to the kind of prices we saw the last time crude sold for under $30.00 / bbl (actual price, not inflation adjusted price).

Interesting table that shows both actual, and inflation adjusted crude prices.

Don't take the lies the folks who have been fleecing us are doling out. It is a scam. Remember, if it smells like cow pasture fertilizer - it usually is.

Remember: Their oil companies' goal is to grow more "greens" for themselves.

The jobs created were political fertilizer.

The jobs "lost" are more political fertilizer.

How deep does the fertilizer need to get before folks realize they're about to drown in it?

The goal is to separate you from your money while making you feel sorry for the billionaires who are ripping you off.

jeff of pa · Jan 21, 2016

Sorry But I sat back for years paying Outrageous prices for gas.
and still need to pay $3.00 & More for a Quart of Oil at Family Dollar of all places,
While Oil companies posted Billion Dollar profits.

now I'm sitting back Laughing & figuratively Pumping my Fist :headbang:

Too bad if they can't afford food for their Table.
Maybe they should shop at Walmart instead of Ordering their private Jet to take them out to eat 3 times a day

like it or not, I think we are Owed this :thumbsup:

Terry Soloman · Jan 21, 2016

All I know is my mutual funds have lost a lot.

Cheapest gas in White Plains, NY today..

Mackaydon · Jan 21, 2016

I sold a house in Midland TX in April at a price I thought was low.
I can't imagine how much lower that house is worth today; or if it could be sold above the mortgage.
Don....

dr-quest · Jan 21, 2016

We dropped down to .91 cents a litre here which when converted and accounting for the exchange is $2.76 a gallon US, so Terrys price above is a welcome sight for me driving to Florida next week :laughing7:

Frankn · Jan 21, 2016

jeff of pa said:
Sorry But I sat back for years paying Outrageous prices for gas.
and still need to pay $3.00 & More for a Quart of Oil at Family Dollar of all places,
While Oil companies posted Billion Dollar profits.

now I'm sitting back Laughing & figuratively Pumping my Fist

Too bad if they can't afford food for their Table.
Maybe they should shop at Walmart instead of Ordering their private Jet to take them out to eat 3 times a day

like it or not, I think we are Owed this

I have to agree with this. The Arab oil cost them $5/bbl to produce. They are suffering ? ( lol ) because they might have to cut back on there extravagant life stile. Last month, the Saudi king visited the US. He rented a whole hotel. Had it's interior painted gold and all red carpeting installed. I think he was there for a week.

The last time I filled up my MH it cost me about $4/gal. Yesterday, I filled it for $1.94/gal. LOL,LOL,LOL,LOL.

OK, it hit the low of app $26/bbl and bounced up. I think the 2016 average price will hold in the 30's.
Frank

Chadeaux · Jan 21, 2016

What no one sees is this:

The oil companies WILL NOT LOSE MONEY ... I don't care how low a barrel of oil goes. They will ALWAYS price their product at a profit.
The oil companies are NOT LAYING OFF PRODUCTION WORKERS (the low prices are engineered to keep their profit up despite what the media is telling everyone). If they were hurting, they would. To think otherwise would assume the oil companies have a conscience
They ARE laying off people in the EXPLORATION segment ... because they have been successful in securing their future for probably another 50 - 100 years of price gouging and general abuse of the populace.
Why is all of this happening now? To slow down the only thing that scares the oil companies --- research into alternative energy sources that would cut THEM off at the gonads.

One thing this will accomplish, however, is to get the "little guys" out of the business.

I remember back in the 1970's that there was a friend of one of my uncles, the guy lived on the Gulf Coast in Mississippi. He invented a machine that was called a "perpetual motion" machine which produced electrical power without fuel beyond getting it started. He became a very wealthy man, but the invention was suddenly declared "a hoax" after he got paid and it disappeared.

FreeBirdTim · Jan 21, 2016

The prices are going down in the dead of winter. That's a scary thought if you're a big oil company. Demand for heating oil should get the prices up, but it's not doing squat. I paid $2.00 a gallon for oil in late November. I got oil yesterday and it was $1.70 a gallon! No way should heating oil go down 30 cents a gallon in the winter. OPEC's loss of control on oil production has moved prices to where they should have been all along.

Mackaydon · Jan 21, 2016

The Saudi strategy seems simple enough: If they can no longer control limiting the supply of oil to the market through OPEC (and thereby keep prices high) then they will saturate the market with supply, thereby forcing many thousands (?) of smaller producers, distributors and suppliers out of business--who have a higher break even point than the Saudis; and prices will then return to the artificial 'normal' we have had for years. Iran coming on line with their previously-withheld supply will only hasten the process.
Don......

bill from lachine · Jan 21, 2016

Don,

I'm with you on this one.....the fracking crowd and small and mid sized players are dropping like flies.....as that production dries up the first tier players will have the field/game/market all to themselves.

Regards + HH

Bill

boogeyman · Jan 21, 2016

Wow! I saw yesterday that crude is down to $28 a barrel! The funny part is I checked my local feed & grain and steel barrels are $29 ea - $25 for plastic. Bet you never thought you'd see the day barrels cost more than the crude in it. Gave me a good giggle!!!!

Limitool · Jan 21, 2016

boogeyman said:
Wow! I saw yesterday that crude is down to $28 a barrel! The funny part is I checked my local feed & grain and steel barrels are $29 ea - $25 for plastic. Bet you never thought you'd see the day barrels cost more than the crude in it. Gave me a good giggle!!!!

While I don't doubt the price of the steel barrels AT ALL... (makes sense to me)... Don't "they" recycle each barrel to lower the price of each full barrel? Surely each $29.00 barrel is not a one time use thing...? I'd think each barrel could be used many times over... but then again sometimes my think'er goes off track or isn't "plugged" in to such things. I realize each barrel would have a "shelf life". But there has to be billions upon billions and more billions of steel barrels already produced.

Each time the barrel is used again the price of the oil within it just went down. What am I missing or mis-understanding?

dirtscratcher · Jan 21, 2016

Limitool said:
While I don't doubt the price of the steel barrels AT ALL... (makes sense to me)... Don't "they" recycle each barrel to lower the price of each full barrel? Surely each $29.00 barrel is not a one time use thing...? I'd think each barrel could be used many times over... but then again sometimes my think'er goes off track or isn't "plugged" in to such things. I realize each barrel would have a "shelf life". But there has to be billions upon billions and more billions of steel barrels already produced.

Each time the barrel is used again the price of the oil within it just went down. What am I missing or mis-understanding?

A barrel is a measured unit. Oil very rarely is in a barrel.

jeff of pa · Jan 21, 2016

my Former neighbor (largest landowner here in town) is part owner in a local Coal Mine.
They get their Oil in Barrels, But don't return them that I'm aware of.
He keeps me in Burn Barrels. Told me they have Plenty sitting around the Hole.
& when Mine goes bad, He just brings me another out, No charge.
No idea if they are actually eating the cost or if not all Steel Barrels have a price on them

I've seen others with $25.00 price Tags sitting in front of homes

Chadeaux · Jan 21, 2016

Limitool said:
While I don't doubt the price of the steel barrels AT ALL... (makes sense to me)... Don't "they" recycle each barrel to lower the price of each full barrel? Surely each $29.00 barrel is not a one time use thing...? I'd think each barrel could be used many times over... but then again sometimes my think'er goes off track or isn't "plugged" in to such things. I realize each barrel would have a "shelf life". But there has to be billions upon billions and more billions of steel barrels already produced.

Each time the barrel is used again the price of the oil within it just went down. What am I missing or mis-understanding?

Actually, very few (relatively) are ever used. Tankers are just that, tanks containing crude.

There are large storage vessels at the refineries ... the crude is offloaded and pumped into the large tanks with the floating tops (see image below ... 1, 2, and 3 are not full)

The oil companies, at $1 / bbl would still be able to make money, simply because we (our economy) need it for transportation etc.

Follow the money. Cleaning out the little guys means they can charge more than things are worth. But that's ok, we have plenty of money.

Limitool · Jan 21, 2016

Chadeaux said:
Actually, very few (relatively) are ever used. Tankers are just that, tanks containing crude.

There are large storage vessels at the refineries ... the crude is offloaded and pumped into the large tanks with the floating tops (see image below ... 1, 2, and 3 are not full)

View attachment 1263208

The oil companies, at $1 / bbl would still be able to make money, simply because we (our economy) need it for transportation etc.

Follow the money. Cleaning out the little guys means they can charge more than things are worth. But that's ok, we have plenty of money.

OK.... I kinda understand your post.... but want about each steel "barrel" costing $29.00 ea.? Maybe my image of a barrel is not what I'm thinking.... Let's go backwards... What is a barrel of oil's size?

jeff of pa · Jan 21, 2016

there are definitely different types & sizes of Barrels.
Just like there are different Grades of Oil.
A barrel of crude oil is about 42 US gallons
from what I can find

Msbeepbeep · Jan 21, 2016

Shows what I know, I always thought they were 50 gallon drums, boy would I get taken to the cleaners! :eek:

Limitool · Jan 21, 2016

jeff of pa said:
there are definitely different types & sizes of Barrels.
Just like there are different Grades of Oil.
A barrel of crude oil is about 42 US gallons
from what I can find

Ok... original question:

While I don't doubt the price of the steel barrels AT ALL... (makes sense to me)... Don't "they" recycle each barrel to lower the price of each full barrel? Surely each $29.00 barrel is not a one time use thing...? I'd think each barrel could be used many times over... I realize each barrel would have a "shelf life". But there has to be billions upon billions and more billions of steel barrels already produced.

Each time the barrel is used again the price of the oil within it just went down. What am I missing or mis-understanding?

Chadeaux · Jan 21, 2016

Limitool said:
Ok... original question:

While I don't doubt the price of the steel barrels AT ALL... (makes sense to me)... Don't "they" recycle each barrel to lower the price of each full barrel? Surely each $29.00 barrel is not a one time use thing...? I'd think each barrel could be used many times over... I realize each barrel would have a "shelf life". But there has to be billions upon billions and more billions of steel barrels already produced.

Each time the barrel is used again the price of the oil within it just went down. What am I missing or mis-understanding?

In the PRODUCTION of oil ... from the ground to the pipeline to the tanker to the tank farm ... not one single barrel.

Now, that being said, "petroleum bulk stations" do sell various products in barrels AFTER the refining process is complete.

Back in the 1970's, when my dad tried his hand at that job, the barrels were returned kinda like empty pop bottles when you made your next purchase. He would leave with full barrels, return with empties.

As small as he was, I was surprised to see him handle a 55 gallon drum even when it was full. Had a friend make him a tool that gave him a mechanical advantage in turning it on edge, then he could move it however he wished by turning it --- as long as he could keep it balanced.