Fuel Prices.

[rideit]

$2.99 for unleaded here in JH. Whatchyou got?

[Tye 1on]

$2.96 in Victor, woot!

[rideit]

The .20 cents off option at Smith's rocks...

[Tippster]

Thanks, Obama.

[rideit]

Oh, boy, here we go!

[BCMtnHound]

$4.12CND/USgallon in Kamloops (one of the cheaper petrol markets in the south half of the province)

[PNWbrit]

Thanks, Obama.

Tipp.... these low oil prices are an Obama problem. Just like the high oil prices previosuly were an Obama problem.

Try and keep up.

[Tippster]

Oh, boy, here we go!

Heh - wrong forum. Sorry.

'Round here it's still in the $3.00+ range but falling. NBC was reporting yesterday that some experts are expecting prices to fall <$2.00 in some locations pretty soon, and it's all due to the Saudis not cutting back production. Seems they're trying to get the price so low the Bakken and Tar sand oil will be too expensive to produce and production will drop/stop. What a world.

Odd how nobody is clamoring "Drill Baby Drill" anymore tho, huh?

[booner]

guess I should have bought an F350 instead of another Subie

[rideit]

I expect Putin to chime in here.

[Cross]

Prices are all over the place in CO. Last week it varied from 2.18 to 3.09. Grand Junction you could find it as low as 2.18. Around 3.00 in the mountains. Front range I saw anything from 2.55-3.00.

The article I read is OPEC is trying to drop prices below $60 a barrel. At that point oil shale is no longer profitable.

[PNWbrit]

The article I read is OPEC is trying to drop prices below $60 a barrel. At that point oil shale is no longer profitable.

Yeah.

Who saw that coming.

[hawkgt]

2.91 for 91 octane on Sunday.

Odd how nobody is clamoring "Drill Baby Drill" anymore tho, huh?

ohhhh they are drilling.... a shit load......dont have to chant... they are in action.

[Viva]

$2.69 for 87 in Auburn, Kalifornia earlier today.

[Mazderati]

Oil market analysts are debating if oil will fall to $50. In North Dakota, prices are already there.

Crude sold at the wellhead in the Bakken shale region in North Dakota fell to $49.69 a barrel on Nov. 28, according to the marketing arm of Plains All America (PAA) Pipeline LP. That’s down 47 percent from this year’s peak in June, and 29 percent less than the $70.15 paid for Brent, the global benchmark.

The cheaper price for North Dakota crude underscores how geographic and logistical hurdles can amplify the stress that plunging futures prices have put on drillers in new shale plays that have helped push U.S. oil production to the highest level in 31 years. Other booming areas such as the Niobrara in Colorado and the Permian in Texas have also seen large discounts to Brent and U.S. benchmark West Texas Intermediate.

“You have gathering fees, trucking, terminalling, pipeline and rail fees,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “If you’re selling at the wellhead, you’re getting a very low number relative to WTI.”

Discounted prices at the wellhead have been exacerbated by a 39 percent drop in Brent futures since June 19 to $69.92 a barrel today. Prices have fallen as global demand growth fails to keep pace with surging oil production from the U.S. and Canada.
Photographer: Daniel Acker/Bloomberg

Unit Drilling Co. crude oil rig 123 drills a crude oil well outside Watford City, North Dakota, U.S.

Much of that new output is coming from areas that are facing steep discounts. Bakken crude was posted at $50.44 a barrel yesterday. Crude from Colorado’s Niobrara shale was priced at $54.55, according to Plains. Eagle Ford crude cost $63.25, and oil from the Oklahoma panhandle was $58.25.
Location, Quality

Discounts for all crudes are based on two things, location and quality, according to John Auers, executive vice president at Dallas-based energy consulting firm Turner Mason & Co.

Most U.S. refiners are along the coasts, which gives them a choice between oil pumped from wells in the middle of the country or foreign crude that can be delivered to the plant on a tanker.

That means the producer has to charge less, to make up for whatever it costs to transport it to the plant. In the Eagle Ford, that just means a few dollars to get to a pipeline that can cheaply push it 100 miles or so to Corpus Christi, Texas.

It’s more complicated in places like North Dakota, Colorado or Wyoming, where there is limited pipeline capacity. Producers have to fill rail cars with crude and pay $10 to $15 a barrel for them to be pulled a thousand miles or more to the coasts.
Reallocating Capital

“To a producer in Wyoming, if Brent’s $70 then I’m at $50, then I have to start asking does it economically make sense to keep drilling,” Auers said. “They might start reallocating capital, you might see projects slowed or shut down.”

Transportation discounts don’t last forever. WTI, priced at Cushing, Oklahoma, traded almost $28 a barrel below Brent in October 2011. Companies built new pipelines and reversed old ones to allow Cushing oil to cheaply get to the Texas coast, and now the discount is $3.

In West Texas’s Permian Basin, the nation’s largest oil field, prices at a hub in Midland dropped to as much as $21 a barrel less than WTI this year as production growth overwhelmed the pipeline system. It’s narrowed to 55 cents as new pipes recently came online.
North Dakota

The same thing is happening in North Dakota, where the Bakken shale produces 1.12 million barrels of oil a day. At the end of last year, there was only space for 583,000 barrels daily to leave the state on pipelines. That’s forecast to grow to 773,000 by the end of this year and to as much as 1.7 million barrels a day by the end of 2017, according to the state’s Pipeline Authority.

One possible effect of lower prices is that companies may focus their spending on places where the infrastructure already exists or is on the way, said Carl Larry, a Houston-based director of oil and gas at Frost & Sullivan.

“Places that are just starting to build up are going to be hit the worst,” Larry said by phone. “They’re going to get hit the hardest because it’s harder to get the oil out. Not out of ground, but out of the area.”

Bloomberg link.

[mud]

The article I read is OPEC is trying to drop prices below $60 a barrel. At that point oil shale is no longer profitable.

Sorta depends on region and who is doing the drilling.



http://www.bloomberg.com/news/2014-1...t-from-it.html

[GiBo]

guess I should have bought an F350 instead of another Subie

Haha. I read that SUV and truck sales are up dramatically since we've seen lower gas prices. We really are a bunch of dumb fucks, aren't we?

[sb]

$2.65 few days ago in VA

[XXX-er]

" Rigs will start to come down in March when debt laden mid sized companies face credit calls. Smaller, cash heavy companies will step in to soften the landing and drill until April or May, weather permitting, to get their one off wells done or to supplement their aging fields.

Break-up will be prolonged and when rigs do fire up contract companies will be calling their most experienced / valuable hands first. I'm betting the roughnecks will be starved out of purchases they couldn't afford by about August. That'll be a good time to buy:

Black F-350s
Luxury Watches
Guns
Quads
Dirt Bikes
Boats


In Alberta and Northern BC. "

According to a petro dude in Calgary there is going some good prices next summer on luxury goods

[BmillsSkier]

Thanks, Obama.

So in 6 years presidents can now change gas prices? Stick to the narrative Tipp.

[Benny Profane]

So in 6 years presidents can now change gas prices? Stick to the narrative Tipp.

Well, he did make it pretty clear that, when he was first elected, that energy independence was a worthy goal, and, here we are.

[iceman]

Seems they're trying to get the price so low the Bakken and Tar sand oil will be too expensive to produce and production will drop/stop. What a world.

I read somewhere that the cost basis for tar sand oil is like $60/bbl, it's pretty unlikely prices will go anywhere near that. If you're looking for a conspiracy theory I'd say it's more likely that the whole oil industry wants to knock the shit out of investment in renewable energy, because if that all implodes they're free to do what they want again.

[guroo270]

$2.45 here in some places in TN for the cheapest. $3 for 93 octane.

[BmillsSkier]

Well, he did make it pretty clear that, when he was first elected, that energy independence was a worthy goal, and, here we are.

Just like every modern president before him, and every president after him. You could have just said, campaign platitudes only have merit when they work out in my guy's favor.

Give me a break people, just enjoy the low prices while they last and stop trying to assign credit/blame.

[rideit]

I zink you missed ze tongue in ze cheek.....