Earlier quoted context omitted.
2.30 here. Feels like 1999.
Where is "here"?
Probably the South. Lower taxes and close to refineries.
Oil Falls Below $40 for First Time Since 2009 as Glut Grows
91–100 of 174 posts
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#92Earlier quoted context omitted.
Production of beef and lamb makes about 15% of greenhouse gases, not mentioning transport of it, or dairy. Lot of greenhouse gases are produced for energy use, heating, AC and similar. Problem is that we aren't really burning that much oil for our own personal transportation. We're burning oil on places where efficiency isn't a goal. Feeding a mammal to harvest meat or milk isn't efficient. We humans like meat, we su…
transportation usage accounts for over 93%(!) of crude oil usage, and about 40% of overall greenhouse gas production.
You are including industrial transportation into these numbers, when realistically, these numbers should be included in the accompanying industry. Personal transportation has a much lower footprint.
http://www.wri.org/sites/default/files/world_greenhouse_gas_...
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#93And it will go lower! Canadian crude hit $23/bbl earlier in the week. North America is close to maxing out storage capacity...possibly within 90 days. We've not been this close to max storage capacity in more than 80 years. North American crude oil production currently exceeds demand (meaning what we have capacity to refine) by over 1 million barrels a day. All that extra is getting dumped into storage. And the sprea…
So, how long until my 5-figure position in UCO gets back to June levels? https://www.google.com/finance?cid=14807175
Tough question. 2-3 years...maybe longer.
An awful lot of production capacity has to be sweep out of the North American market (production is actually still going UP!!!).
A lot of small to mid-size operating companies will need to go bankrupt...they're the ones keeping production volumes high. They need the cash to cover interest on the bank notes taken out to drill and frack those wells.
The other wildcard is how quickly Iran can ramp up production. That might be 5-7 years given that their technology base is circa 1979 and will need to be upgraded. But it might happen in as little as 2 years...which would continue to dump crude oil on the world markets.
If Congress would repeal the Carter-era export ban on crude oil, that would go a long way towards re-balancing the North American markets, but that seems to be a low-probability event.
So it could take a while, but eventually it will...it ALWAYS does!
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#94So now that it is down and will go up to $120 again soon, how do I invest in it?
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#95Lower oil prices seem to be driving the major US indices lower lately. Why is that? Lower energy expenses seems like a good thing for businesses.
> Lower oil prices seem to be driving the major US indices lower lately.
Potentially, because the oil companies are components of the major indices?
Or, potentially, because the oil prices aren't dragging down the US indices, oil prices and US indices are both down because of supply/demand factors which reflect expectations of slowdowns in various markets, and increased uncertainty in the energy sector, both of which are immediate, if not durable, negatives for investors.
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#96I wonder why so many people are only looking at the economic side of this DO THEY NOT REALIZE THE IMPLICATIONS FOR THE ENVIRONMENT AND HOW WE USE FOSSIL FUELS? We burn (no pun intended) through resources as fast as we want until there are none left. And then what?
A huge world war, and then the survivors become farmers until the heat death of the universe
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#97Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#98Earlier quoted context omitted.
So, how long until my 5-figure position in UCO gets back to June levels? https://www.google.com/finance?cid=14807175
Tough question. 2-3 years...maybe longer. An awful lot of production capacity has to be sweep out of the North American market (production is actually still going UP!!!). A lot of small to mid-size operating companies will need to go bankrupt...they're the ones keeping production volumes high. They need the cash to cover interest on the bank notes taken out to drill and frack those wells. The other wildcard is how qu…
Why is there an export ban on crude oil?
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#99Earlier quoted context omitted.
Well, counter-intuitivley, consumer gas prices aren't falling nearly as much if at all. Personally I think the DOJ should investigate refineries, as none of the seem particularly eager to compete on price. They're making record profits as the price of crude collapses while the price of gasoline is flat. http://www.latimes.com/business/la-fi-refinery-profits-recor... It seems very fishy to me that we have so much crud…
There is a refinery problem in Indiana which is why gasoline is staying elevated even thought crude is falling. If anything happens along a refinement chain, there is a disconnect between market prices. The full affect is on the Chicago area, not sure how it is affecting other regional markets.
Prices haven't dropped elsewhere like they should, you know that.
Re: Oil Falls Below $40 for First Time Since 2009 as Glut Grows
#100Earlier quoted context omitted.
Refining capacity doesn't increase because of a drop in crude oil prices. If supply of gasoline cannot be increased, prices will not fall even if the raw crude price falls. The EPA has been hostile to refinery expansion or new refinery construction.
Capacity doesn't increase, but costs do decrease as the cost of raw materials drops. Now, obviously price is only partly determined by cost.
That's kinda the whole point. There is nothing for refineries to gain by reducing the price of gas because...nobody is going to sell gas at a lower price and take over the market because...the EPA does not allow one to build refineries.
Free markets y'all.