Current Oil Price

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clv101
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Post by clv101 »

And this: https://www.bloomberg.com/news/articles ... y-is-worse

November 2018 the peak then? Crude all and all liquids?
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

Runs out of ABOVE ground storage space. Silliest place in the world to store a bunch of the stuff...but it is what it is I suppose.
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Post by mikepepler »

"Oil price collapses to lowest level for 18 years"
https://www.bbc.co.uk/news/business-52089127

Currently Brent Crude is at $23.
Mike

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Dr Colin Campbell

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Post by kenneal - lagger »

ReserveGrowthRulz wrote:
Runs out of ABOVE ground storage space. Silliest place in the world to store a bunch of the stuff...but it is what it is I suppose.
For people to make money out of oil it has to be taken out of the ground. If kept in the ground no money goes into people's pockets.

I am quite happy for us to leave most of the oil in its below ground storage space for ever. The problem isn't the below ground stored oil, it's the wish of oil companies to make money from it.
Action is the antidote to despair - Joan Baez
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

kenneal - lagger wrote:
ReserveGrowthRulz wrote:
Runs out of ABOVE ground storage space. Silliest place in the world to store a bunch of the stuff...but it is what it is I suppose.
For people to make money out of oil it has to be taken out of the ground. If kept in the ground no money goes into people's pockets.
Of course. And I stand by my original statement.

The difference is primarily one of cost and WHEN you make money. Oil in the ground is potential money. It sits there quietly, minimum inventory cost, safely hidden away from those who don't know how to use a drilling rig. Upon investment and the application of expertise, you have the same thing in a tank on the surface. Except now you have incurred a cost.

The process of asking someone for more than it has cost you to get, begins.
kenneal-lagger wrote: I am quite happy for us to leave most of the oil in its below ground storage space for ever. The problem isn't the below ground stored oil, it's the wish of oil companies to make money from it.
I have no objection to leaving oil in the ground. Billions of other consumers don't seem to agree with me though.
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Post by kenneal - lagger »

It seems that oil producing nations are working on the basis of a bird in the hand being worth two in the bush and carrying on producing.
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Post by vtsnowedin »

kenneal - lagger wrote:It seems that oil producing nations are working on the basis of a bird in the hand being worth two in the bush and carrying on producing.
There are payrolls to meet and bills to pay and if the oil does not flow nor does the cash. Those that have the cash reserves can shut down the pumps on any well where that will not harm the wells future production but many small companies are working on borrowed money and the payments have to be met along with the payroll.
Perhaps the governments can pay these small operators to also shut down production treating the oil left in the ground as part of the national reserves.
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

kenneal - lagger wrote:It seems that oil producing nations are working on the basis of a bird in the hand being worth two in the bush and carrying on producing.
As an ex oil-man, I have been getting calls from all sorts of interested economists, government prognosticators, policy wonks, websites and academics as to what this all looks like from the industry perspective, what are companies thinking and what they might do next.

Some of us were around on that fateful day in 1986...feeling like we were in the barrel going over Niagara Falls. It isn't a pleasant feeling to be sure.
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

kenneal - lagger wrote:It seems that oil producing nations are working on the basis of a bird in the hand being worth two in the bush and carrying on producing.
And the rollercoaster ride down is quite interesting to watch. Far better than what the experience felt like from inside the industry.
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Post by UndercoverElephant »

https://edition.cnn.com/2020/04/01/busi ... index.html
The world could soon run out of space to store oil. That may plunge prices below zero
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Post by vtsnowedin »

UndercoverElephant wrote:https://edition.cnn.com/2020/04/01/busi ... index.html
The world could soon run out of space to store oil. That may plunge prices below zero
While negative interest rates are possible and sometimes make sense for the bond buyers a negative oil price makes no sense at all and should shut off every oil pump in the world. Why suffer the lifting cost for zero return? I would think logical producers would shut the pumps off long before zero but understand that any cash flow is better then no cash at all .
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

vtsnowedin wrote:
UndercoverElephant wrote:https://edition.cnn.com/2020/04/01/busi ... index.html
The world could soon run out of space to store oil. That may plunge prices below zero
While negative interest rates are possible and sometimes make sense for the bond buyers a negative oil price makes no sense at all and should shut off every oil pump in the world. Why suffer the lifting cost for zero return? I would think logical producers would shut the pumps off long before zero but understand that any cash flow is better then no cash at all .
Just proves the theory I established during scarcity days when being interviewed by reporters that they don't know dick on this topic, and aren't likely to exert an additional synapse firing to get it right.

You, on the other hand, are exactly correct. The less storage there is in an oversuypply/underdemand situation, the lower the price will drop. Without the ability to store product, storage will be pushed backwards through the supply chain. Full gasoline/diesel storage lead to full crude storage lead to full processing plant storage leads to full stock tank barrel storage leads to no production possible unless you've got a few swimming pools nearby...and when they are full, production by definition must stop.
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Post by Catweazle »

RGR, can you give me an idea of how much it costs to get one barrel of oil from ground to market ? Is the current $23 selling price approaching the cost ?

I realise that production costs vary widely, but some ballpark figures would be interesting.
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ReserveGrowthRulz
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Post by ReserveGrowthRulz »

Catweazle wrote:RGR, can you give me an idea of how much it costs to get one barrel of oil from ground to market ?
I am sorry, I cannot.
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Post by Catweazle »

ReserveGrowthRulz wrote:
Catweazle wrote:RGR, can you give me an idea of how much it costs to get one barrel of oil from ground to market ?
I am sorry, I cannot.
OK, I'll be surprised if anyone else can then.
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