Low oil prices

It will just give it time Thing with some of us and our cars is we have them because that is what we want and at this time in life we don't care what gas cost . I got the wants for a Mustang Cobra ,that would give us three Mustangs Even at 63 years old I like a little zip under the hood

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Check it Out O added another Plank With O care
http://www.libertyzone.com/Communist...to-Planks.html

.............I purchased a brand new 2012 Mustang GT , solid black , 412 Hp with 6 speed manual ! Was faster than a car load of illegals in a 57 Chevy with a rocket in the trunk . I loved that car but my Arse was simply too close to the pavement , I was constantly dodging big rig recaps as they would have really torn up the under carriage had I ran over one . Traded it for 2011 F150 new supercrew with 5.0 . I love my pickup , more than I loved that mustang . , fordy

News tonight, NC is raising tax on fuel; effective 1/15. They say; because fuel prices are so low. How can they know that far ahead what gas prices will be? To get a tax increase.

Relax, folks. Saudis and most of the middle east have very low extraction costs. They are flooding the market in order to put the squeeze on the US producers who have costs in the $50 per bbl range. As soon as they've driven some of those fellows out of the business they will jack up the prices again.

Oil sands extraction costs are said to be around $75 per bbl. One new company says it can produce, with new technology, for around $38 per barrel. That is still higher than the Arabs' cost.

Danged A-rabs.

The gas is taxed by the gallon not the price per gallon . Its got to be more effeceint (sp) cars.

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Those who fail to plan plan to fail !!!

Under $50 a barrel. I expect much of the oilfield to start laying off soon. but that's the boom and bust of the oilfield.

East of the RockiesPriceChangeGvty
Adj*Altamont Yellow Wax38.91(1.90)Rocky Mountain Condensate43.91(1.90)Southwest Wyoming Sweet48.66(1.90)Uinta Basin Black Wax37.91(1.90)Western Colorado44.91(1.90)Note: Prices in $/bbl


http://crudemarketing.chevron.com/po...cing_daily.asp

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If the grass looks greener it is probably over the septic tank. - troy n sarah tx

Our existance here is soley for the expoitation of CMG

Crud!!!!

Wolf, at those prices much of the oil patch is under water. So is the stock market; my few nickles are now pennies.

Actually, here in NC we have one of the highest gas taxes in the nation and they recompute it every six months based on the average price during a six month period. The tax goes up one cent to $.375 cents per gallon based off the sales price from April 2014 through Sept. 2014. Which of course was the highest priced period. Yet we are putting in toll roads because we can't raise enough money to build and repair roads. Idiotic!!!!!

http://www.wral.com/nc-gas-tax-will-...-day/14281211/

The stock market is doing fine today. It's up $175 on the day, and is only a few hundred below the historical high.

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Ah yes but don't get too excited just yet. Russia just bumped their interest rates from 10 to 17% trying to stave off the financial depression that appears to be on the way. Trading has now been halted on the ruble...this may be the black swan event that many in the world have been looking for.

And here at home, drilling rigs are shutting down in North Dakota.
Not a problem you say? Well...there was a lot of money borrowed by bonds (mostly junk bonds) by drilling companies. If they can't make their payments, then there could be more problems here in the US.

http://www.bloomberg.com/news/2014-1...of-losses.html

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Oh my, dishes yet to wash and dry

See My Pictures at
http://smg.photobucket.com/albums/0903/arabianknight/

Outsmarted by the Arabs -- again...

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Some of their production costs are low but that's not so true of more recent field developments, some of them have been rather disappointing actually. They also do not have anything like the extra capacity that they used to have so they can't just open the valves to flood the market. This whole thing is more about jawboning and market demand. The Saudis don't want to have to reduce production to compensate for increase US production in the face of declining demand, it's that simple. They are also crushing the Russians which they like. You also have to consider that because of the steep decline curve in shale production it won't take much of a pull back in shale drilling and fracking to drastically alter the supply situation.

Ask that governor of yours what the heck the problem is. I lived in NC from 89-91. They were busy trying to build enough 4 lanes so everyone would be within 10 miles of one. Maybe the upkeep on that requires alot of tax. Anyway between the cost of living and all the northern east coasters moving in a buying up everything, it wasn't for me.

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So in the morning, please don't say ya love me.
Cause you know I'll only kick you out the door.

That's about the time the NCDOT coffers were busting at the seams. We had plenty of money for building and maintaining roads. Then the legislature decided to raid the accounts just like the Feds did Social Security. But the state can't just print money to cover the IOU's.

The Saudis are fully convinced that demand for oil will be gone long before their oil runs out. Right or wrong, that's how they approach the problem. Believing that, they want to sell all the oil they can for whatever they can get for it.

To keep things in perspective, good quality oil (west Texas intermediate) sold for $18 during the late 1980s oil glut. Saudis didn't mind $18 oil at all, and sold us all we wanted for that price. Adjusting for inflation, $18 oil in 1988 would be equivalent to $36 oil today. With oil at $55 today the Saudis are still riding high, and oil could drop another $20 and they'll still sell us all we're willing to buy.

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Part of what you are saying is correct. However, given the current volume they are selling they need nearly $90 a barrel to cover the cost of running their government and all their programs. They are taking money from their reserves to cover the shortfall and I don't know how long they can or will want to sustain that. The other issue is that their oil is going to run out, a lot of their new developments have not been nearly as prolific as anticipated and the quality has been much lower than expected. Some fields are starting to water out. They are doing a whole lot of things to maintain or increase production that they never thought they would have to do and it's not working in many cases. So I'm really not buying that they expand demand to run out before their reserves do.

The former Saudi oil minister once said:

"Thirty years from now there will be a huge amount of oil - and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil."
http://www.telegraph.co.uk/news/ukne...-oil-ends.html

Oh yeah, they really believe that.

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Nevada; I have a large part of my savings in oil stocks--down 25%. I don't know that the Saudi was wrong---

Not more than a few days ago I read that some auto outfit was readying a test model of the fuel cell for its autos. Work on fuel cells has been going on for a long time--there may be a break through.

I'd like to know--My habit has been to buy high and sell low, and I'd like to change that.

One thing about it; win lose or draw, the chemical industry will need oil for feedstocks. Half our clothing is now synthetic materiels from oil, and there are many other uses. For one thing, we've a lot of country roads that could be paved with asphalt. Oil will sell, but perhaps at lower prices.
Ox

Ox, I see we have the same investment strategy - buy high and sell low.

From what I can find, it looks like about 80% of a barrel of oil is used for heating and fuel and only about 20% for fertilizer, petrochemicals, asphalt, etc.

One stock I just sold was a company that makes petrochemicals. It was supposed to go up as oil went down, but instead it dropped hand in hand with oil companies. This market is strange.

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Rich

The Saudis say a lot of things. Doesn't mean they're true. Dissembling is a fine art with that bunch.

Remember when someone said that nuclear power was going to make electricity too cheap to meter? Same thing, it's agenda driven.