Oil at $25 next year. Start buying futures now!

[OUGrad05]

quote:Originally posted by inteller

if oil gets back up to $62 I think the economy around here will be pretty healthy.  A lot of the wells that go in these days have a cost basis of about $62-65.  rig counts are going down right now because producers can't afford to bring in a well at $45 a barrel.

Yup thats right but as the downturn wears on the costs of production will come down as well.  Another 6 to 9 mos costs that are currently requiring 60 dollar oil will only require 40 dollar oil.  The bubble costs associated with drilling wells has more than doubled in less than 3 years.

[inteller]

they were never "costs"  they were just padded profit.  No joke, I know of service companies that started tacking on another 10-15% on to their prices "just because".  No extra expenses were incurred and no extra services were rendered.

[cannon_fodder]

Too bad Semgroup was riding their oil bets now.

[ARGUS]

I tend to take a Buddist-like approach to oil and gasoline interpretation; and can bestsum it up and explain it as a combination of the replies by: Steve, Sauerkraut and Nathanm.
...can I ask a ?
   if so...

 I have an "oil" related question...Is there an oil guy out there that can explain the calculation (if any) for land surface damages of an drilling company wanting to cross 600 l/f of rual (woods and pasture) Pittsburg County with a backhoe and 6" Poly pipe to link a production point to a gathering point.














thx.

[inteller]

quote:Originally posted by ARGUS

I tend to take a Buddist-like approach to oil and gasoline interpretation; and can bestsum it up and explain it as a combination of the replies by: Steve, Sauerkraut and Nathanm.
...can I ask a ?
   if so...

 I have an "oil" related question...Is there an oil guy out there that can explain the calculation (if any) for land surface damages of an drilling company wanting to cross 600 l/f of rual (woods and pasture) Pittsburg County with a backhoe and 6" Poly pipe to link a production point to a gathering point.














thx.

there is no set calculation or standard.  It sounds like you have already leased them ROW if you are to the damage settlement phase.

If you have NOT leased them ROW yet, you need to find out if you are the most direct route for them to the connect point.  If so raise your ROW prices.  Or you could pull a Bandy and make them join your church and profess their sins while you slap them around.  Of course they might say screw you and then proceed to drink your milkshake.

Oh, and if they show up at your house screaming they are the third revelation you better run.

[sauerkraut]

In 7 days OPEC will cut oil production by 2.5 - 3 million barrels. That is a huge cut. It will affect our pump prices instantly. Since we can't drill for our own oil and with all democrats in the 3 branchs of government we can expect high fuel prices. According to Bloomberg reports oil is creeping up and holding steady. The oil industry is getting ready for the big OPEC meeting. We are hooked on OPEC oil since we can't drill for our own.

[Townsend]

Sit down quietly, put your helmet back on and eat your tater tots.

I'll join you since I read your response.

[osuguy]

No it's not price manipulation.  We overshoot in both directions.  The low price is because of global recession fears and also the fact that too many were over leveraged long oil. Also, commodities are sold off to cover losses that are happening elsewhere in the current deflationary environment.  Consider even T. Boone has been precisely wrong about the the direction in oil the past several years with his oil will not go above 100 and then recently oil will not go below 100 calls.  

[nathanm]

quote:Originally posted by sauerkraut

In 7 days OPEC will cut oil production by 2.5 - 3 million barrels. That is a huge cut. It will affect our pump prices instantly. Since we can't drill for our own oil and with all democrats in the 3 branchs of government we can expect high fuel prices. According to Bloomberg reports oil is creeping up and holding steady. The oil industry is getting ready for the big OPEC meeting. We are hooked on OPEC oil since we can't drill for our own.

If at first you don't succeed, predict predict again.

[sauerkraut]

You'll see. The market won't take a 3 Million barrel cut in oil production and still keep oil prices low.[B)]

[Hoss]

We have Nostradamus Jr. in our midst.

[:O]

[nathanm]

quote:Originally posted by sauerkraut

You'll see. The market won't take a 3 Million barrel cut in oil production and still keep oil prices low.[B)]

You honestly don't think this now old news is already priced in?

Anyway, the bears are out in force right now and there's little money to be had for speculation, so the price should remain low for a while, regardless of OPEC.

[Michael71]

Gas went up to 1.49/gallon between 10am-12am today @ QT

[Hoss]

quote:Originally posted by MichaelWayne_71

Gas went up to 1.49/gallon between 10am-12am today @ QT

Yep, but oil is still sub 50 and is down a dollar and a half for today at 44 and change.

Fluctuations like this, as in previous years, I typically blame on the holidays.

[inteller]

quote:Originally posted by Hoss

quote:Originally posted by MichaelWayne_71

Gas went up to 1.49/gallon between 10am-12am today @ QT

Yep, but oil is still sub 50 and is down a dollar and a half for today at 44 and change.

Fluctuations like this, as in previous years, I typically blame on the holidays.

i blame price gouging for the 12 cent hike.  That was uncalled for.  The stations around here saw sleet and WHAM jack up the prices.  That is illegal.