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100 dollar a barrel oil...again.

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It will be interesting to see what happens in the Middle East as electric vehicles begin to take over the market. The sheiks can’t drill for volts and amps, though they do have a pretty good location for solar energy. :rolleyes:

TJ
 
It will be interesting to see what happens in the Middle East as electric vehicles begin to take over the market. The sheiks can’t drill for volts and amps, though they do have a pretty good location for solar energy. :rolleyes:

TJ

LOL. The drilling for amps got me chuckling. Our car is an EV so we don’t really care about the processing gas. But fuel prices affect the price of food and goods and that’s hard on many poorer folks in society. Diesel prices seem to be holding for the time being but gas appears to be on a steady creep up.

But yah. I agree. Right now there are are about 6000 new vehicles hitting the road everyday without gas tanks, oil sumps, transmissions or exhaust systems. You would think oil companies would want to try and slow that down. And 100 dollar oil will definitely speed the transition to electric.

JMHO.
 
Our government changed our energy policy after the election. The new regime has stopped as much oil production and fracking and pipelines as they possibly can. The result is less available oil from the USA so the price is no longer controlled by us. It's controlled by whoever we are now buying it from. We'll be lucky if it stops at $100 a barrel. Elections have consequences.
 
Our government changed our energy policy after the election. The new regime has stopped as much oil production and fracking and pipelines as they possibly can. The result is less available oil from the USA so the price is no longer controlled by us. It's controlled by whoever we are now buying it from. We'll be lucky if it stops at $100 a barrel. Elections have consequences.
Right on. We were energy independent a few months ago but not now. Many of our paving contracts in Colorado are now on hold because of an oil shortage required to make asphalt. Add in all the other costs of freight and moving items and we are paying a big price now.
 
OK, twenty five years working oil fields. Sitting in Egypt operating an oil field as I type this. Three weeks into a four week shift, so a bit tired and worn so this may not come out as gentile as normal.
There is no oil shortage. The world is awash with oil, with some players ready to dump even more. It's a market driven commodity. Speculation, transport availability and cost, storage availability and cost, and most IMPORTANTLY demand drive cost.
Energy independence is a balance sheet equation, you have production capability greater than your domestic demand. That doesn't change overnight.
Refiners will always look to buy cheapest crude available for the slate they are booked to sell. buy cheap, sell high. They don't care what flag is on the tanker, or where the cargo came from.
Producers won't invest capital if ROI is not favorable. So even if political winds were favorable, depressed prices arrest new development.
Demand dropped significantly, and quickly due to economic impacts of CV19. As economies rebound, demand is slowly ramping up, but not enough to attract investment yet. As inventory reduces, without production increasing to keep it at same level, prices begin normal market gyrations. The other factors kick in as well.
If you had just taken a severe beating, reduced your staff, idled your kit. How would you act with your product? Most of the industry is trying to stabilize after that beating. Higher prices help their financial situations improve.
Energy policy will affect prices, especially with regards to taxes and costs that are passed through to the consumers. Those politicians that favor green policy want the highest oil prices possible to drive investment in alternative energy sources and users.
The Keystone issue is all smoke and mirrors. That Canadian Crude, is making its way to market via other transport. The pipeline would have made it cheaper to transport, but if the demand dictates it's need a means is always found to get delivery.

Ok, sorry for rant. I will step away from computer........
 
JIm, about the same as always. Sunny and hot! But it's a dry heat ;)

We're on the Gulf of Suez, one of the windiest places I have ever been. So we have constant breeze, sort of reminds me of a blow torch.

cheers,
j
 
Having spent time in Du Bai, I can see how the sheiks spend all their money that they make with oil. And thats just one country and one city.
 
Statements about the volume of U.S. crude production dropping are not true. If you look at the Petroleum institute site, the U.S. is producing more crude per week than we have since May of 2020.
 

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