Oil prices have already taken a dramatic fall that's saved consumers big time at the pump. Last week, crude tumbled below $42 a barrel, down from $100 last year. One big-name investor is predicting an even sharper drop. "There is no evidence whatsoever to suggest we have bottomed. You could have $15 or $20 oil -- easily", influential money manager David Kotok told CNNMoney. http://money.cnn.com/2015/08/18/investing/oil-prices-15-kotok/
Can oil bottom as low as $15 per barrel?
voyager
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That is just not true. Plenty of gas stations offer ethanol free gas across the country.
The average across the board comes out to around ~10%.
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6,015 Posts
wondering what I'd like better
- instituting leveling-taxes so gas would never sell for less than $2 - plus increase the artificial level SLOWLY - with Yes, lowering the tax to moderate gouging...
...actually ANTI- the industry's price-fixing
or
- a fatal disease that only affects oil-execs world-wide
of course
that doesn't HAVE to be either-or
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1,355 Posts
You
I live in Wisconsin where that dam refinery is so called shut down.BP's refinery in Whiting is practically shut down for the next couple of months due to leaks/reliability issues. The fall is also maintenance season where about 10% of the capacity is coming offline for maintenance/repairs. These have huge impacts on the market when the demand is close to outstripping the supply of refined gasoline. People are buying more gasoline now that it is cheap, which is actually keeping it from being even cheaper. It's simple supply and demand. While we have crude oil coming out of our ears, the refinery capacity has not kept up. and the crude is basically sitting in tankage/storage until it can be refined.
Here's an analogy...
We are playing a game of musical chairs when it comes to crude oil and refineries, and when the music stops, there are barrels of oil left standing without a chair (refinery). That last barrel has the price tag drop on it until it forces another barrel out of it's chair, and the process keeps repeating to the point where we are seeing oil under $40/bbl. 99% of the time it makes more sense for an oil producer to keep pumping no matter how low they drop the price, even if it is at a loss. They have bills to pay, and no way to pay them unless they keep the taps full.
When it comes to gasoline, there are chairs (customers) for every drop coming out of the refineries when the music stops - even with the refineries operating at 96% right now.
May I ask what makes you think this?
You must live in California.
Go take that up with your lawmakers who require more taxes, a different blend of gasoline, and more emission protection than the other 49 states.
This is an older map, but it will give you some insight into something that can affect gas pricing often more than taxes will:
![Image]()
There are more than 50 different refining companies in the US, none with more than ~10% of the market. How many choices do you have for cable? Cell phone service? etc.
You want to protect the US oil industry? Allow them to sell their product somewhere other than the United States. The export ban has created an artificially low pricing market.
You said that all gas is E10, then say the average is E10. Let's clear this up. You can very well get E0, that is NO ethanol at all, gasoline in the US and Canada. There are plenty of stations that sell it. There are dozens of websites where you can even locate them.
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1,485 Posts
Check your area for E0 or "pure gas" (no ethanol)..
http://pure-gas.org/
http://pure-gas.org/
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15,663 Posts
Well, besides all the this and that .... that really does matter...... you also have the fundamental fact that petroleum oil pricing has always required some sort of Supply throttling procedure .... because reality is ..... there always has been, is now, and will be until the Second Coming ....... 'too much' supply.
This often or better said for a real long stretch involved ( further back ) - involved mildly screwing over the mid level members on a part time basis but also critically, throwing the two traditional swing producers during this period referenced - who have almost always been forced to live off the scraps @ the table ...... into the ditch - yet again ie Libya ..... and Iraq.
( And yes, in third position would be Iran...... )
When the necessary arrangements and 'schedules' etc within are 'disrupted' or 'abruptly' changed...... for whatever reason or reasons ( it rarely is just about one thing ) ..... more of the natural pricing mechanism in a net sense comes forward.
This often or better said for a real long stretch involved ( further back ) - involved mildly screwing over the mid level members on a part time basis but also critically, throwing the two traditional swing producers during this period referenced - who have almost always been forced to live off the scraps @ the table ...... into the ditch - yet again ie Libya ..... and Iraq.
( And yes, in third position would be Iran...... )
When the necessary arrangements and 'schedules' etc within are 'disrupted' or 'abruptly' changed...... for whatever reason or reasons ( it rarely is just about one thing ) ..... more of the natural pricing mechanism in a net sense comes forward.
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855 Posts
Obviously you dont have a clue of what the hell you are talking about. 10$ funny ****
At this pace Saudia Arabia will completely deplete their government reserves by 2018, that's not the point the point is to destroy the US and Canadian oil industry.
If you're going to be a ****, atleast know what you're talking about. I'm referring to production cost per barrel, not cost of covering the country's budget.
http://www.npr.org/sections/money/2012/04/02/149684373/the-real-reason-gas-costs-4-a-gallon
http://www.reuters.com/article/2009/07/28/oil-cost-factbox-idUSLS12407420090728
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855 Posts
Your obviously not understanding, I said at the pace they are going with the current oil price they will deplete their entire surplus to offset the money they are losing pulling the oil out the ground. That Saudi oil minister was obviously not telling the truth to 60 minutes as its IMPOSSIBLE to get it down to $2. The guy said "probabley" hes not even sure.
No need for your outdated links.
LOL since you don't even know the proper use of your vs you're and can't spell "probably", I'm not sure the rest of your post is worth reading. What you're arguing is completely different from my post which YOU quoted to tell me I was wrong. So while I was making a statement regarding production price, you're over in left field arguing budget deficits. I doubt their cost of production has increased to more than $10 in the past few years. Please find me a link that says that is not the production cost per barrel.
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855 Posts
Cant help the autocorrect, but you show how ignorant you really are. I was NOT talking about budget deficits. You link me to some garbage links that have one guy say its $2 then another article that says its somewhere around $7 and you decide to go with $10. Now you say you "doubt" it has increased over 10$. I linked you to a RBC markets pic that shows exactly what the breakeven points are.
Not worth reading what you have to post goes both ways.
Not worth reading what you have to post goes both ways.
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855 Posts
You lost? is it 2, 7, 10 or now 5?
True cost is The problem is, the true breakeven cost -- the price of a barrel of oil needed to bring it to market and balance country budgets -- is becoming extremely high for these nations.
Country Budget Breakeven Price for Oil (USD)
Saudi Arabia $87.63
In the end that's the only thing that matters.
As to the post where you say they are making money even at $40 you might now understand they are NOT.
Says the guy who doesn't even read what he pulls his charts from.
http://www.businessinsider.com/saudi-arabia-breakeven-oil-2014-12
That is exactly what the chart is. Financial break-evens to cover the budget deficit.
That "One Guy" was the Saudi Oil Minister. The other number was $1-2 stripping out Capital expenditure, the $4-6 is with capital expenditure. As noted directly in my quote. I countered your disagreement with a general doubt that the cost has increased to more than $10 off hand, then with a quick google search reinforced my original links.
You are chasing your tail in a losing argument.
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8,657 Posts
Seen it as low as $1.93 so far.
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855 Posts
I know who he was and he wasn't sure, so which one are you going with 2, 5, 7, 10 or something else. Or do you see what the TRUE break even cost really is yet?
Your post of them making money at $40 is False.
LOL so you are, in fact, arguing about fiscal break-even, IE covering the budget deficit, which just a few posts ago specifically said you were NOT arguing?
Your reading comprehension is abhorrent. Reread my post. Also, where are you getting $7 from? Last I checked, 5 was in between $4-6, which we already noted included capital expenditures vs $2 which does not. Make sure your mommy tucks you in after you're done trolling.
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855 Posts
Maybe you should read what you post: "In the United Arab Emirates, operating and capital costs
combined were estimated to be around $7 a barrel."
What Im saying that you are to ignorant to understand as related to your post of them making money at $40, is they are NOT.
Your mommy can tuck me in.
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