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I tried to buy an actual barrel of crude oil (2015)
41–50 of 165 posts
Re: I tried to buy an actual barrel of crude oil (2015)
#42Considering that the front-month oil contracts went negative today (paid to buy a barrel of oil), I think more (well funded and adept) players will try to hastily arrange more storage facilities. There's just no place to put the stuff right now. It's quite difficult to turn-off an active well. Deep-water wells are all but impossible to stop.
When the price went negative, it made me wonder if I could legally take delivery of barrels of oil in my back yard.
I'd like to assume there are some EPA rules that preclude one from storing barrels of oil just anywhere, but at the same time, the EPA is currently not enforcing any regulations.
I also wondered about delivery on these contracts. Does that include delivery to any address I specify? Can I get paid $3000 to take 100 barrels and ask them to drop it off at my house?
And then what? After the price recovers and I want to sell the barrels, will someone come get them from house?
Re: I tried to buy an actual barrel of crude oil (2015)
#43Considering that the front-month oil contracts went negative today (paid to buy a barrel of oil), I think more (well funded and adept) players will try to hastily arrange more storage facilities. There's just no place to put the stuff right now. It's quite difficult to turn-off an active well. Deep-water wells are all but impossible to stop.
Actually, deep water wells are usually quite easy to shut in by design. They frequently need to be shut in due to hurricanes or infrastructure maintenance. You don't drill a $100 million deepwater well without all the bells and whistles. Very cheap wells with low production (onshore, say ~10 barrel per day) are the ones that tend to be difficult to shut in, as they're not designed for easy temporary shut-ins. That ha…
You've missed your very best chance ever to lead with "Well, actually"!
Re: I tried to buy an actual barrel of crude oil (2015)
#44Earlier quoted context omitted.
have you considered some kind of presubmission check for this? even just to inform users without actually screening, and then auto appending previous discussions if submitted?
Yes but it's not clear how to get it right.
i take it by your edit you are concerned i was interpreting your "past posts" as some implication the OP should not have submitted - this is not the case.
honestly, i just feel bad for you. what appears to me to be a repetitive google + copy + paste on your part is anathema to me, and i was trying to help stamp out such work.
i think this has value, but im worried the amount of work involved grows (at a minimum) greater-than-linearly as HN grows.
Re: I tried to buy an actual barrel of crude oil (2015)
#45Considering that the front-month oil contracts went negative today (paid to buy a barrel of oil), I think more (well funded and adept) players will try to hastily arrange more storage facilities. There's just no place to put the stuff right now. It's quite difficult to turn-off an active well. Deep-water wells are all but impossible to stop.
When the price went negative, it made me wonder if I could legally take delivery of barrels of oil in my back yard. I'd like to assume there are some EPA rules that preclude one from storing barrels of oil just anywhere, but at the same time, the EPA is currently not enforcing any regulations. I also wondered about delivery on these contracts. Does that include delivery to any address I specify? Can I get paid $3000…
> When the price went negative, it made me wonder if I could legally take delivery of barrels of oil in my back yard.
Typically, the exchange contract is quite specific about where and how delivery can be made, and “in barrels shipped to your backyard” isn't an option. See, e.g., the delivery procedures here: https://www.cmegroup.com/trading/energy/crude-oil/light-swee...
Also, “barrels” are just a (traditional for the commodity) unit of measure (42 US gallons/35 imperial gallons), not actual containers used for delivery.
Re: I tried to buy an actual barrel of crude oil (2015)
#46Earlier quoted context omitted.
I think Planet Money also bought a mortgage backed security a while back when things had already gone south. They tracked the houses involved and their history. It was interesting to see the investment tied to specific homes, and etc.
Also a junk/high-yield bond https://www.npr.org/2020/02/19/807544557/meet-our-junk-bond
Schwab allows retail investors to buy junk bonds. I bought one a few weeks ago.
Re: I tried to buy an actual barrel of crude oil (2015)
#47Earlier quoted context omitted.
Anyone got a spare oil tanker? :-) I only slightly kid, makes me wonder how quickly I could acquire a number of oil storage units. edit: this tanker is off the gulf coast right now... https://horizonship.com/ship/274m-suezmax-crude-oil-carrier-...
Actually, I think the real players have already been doing this for a few weeks. If there's a buck to be made, you can bet someone is on it. I was wondering whether they couldn't rapidly build some new storage (cost-effectively), but probably the answer is no .
I'm not sure there's much of anything that will get the NIMBYs riled up more than a million barrels of crude.
Re: I tried to buy an actual barrel of crude oil (2015)
#48Earlier quoted context omitted.
When the price went negative, it made me wonder if I could legally take delivery of barrels of oil in my back yard. I'd like to assume there are some EPA rules that preclude one from storing barrels of oil just anywhere, but at the same time, the EPA is currently not enforcing any regulations. I also wondered about delivery on these contracts. Does that include delivery to any address I specify? Can I get paid $3000…
> When the price went negative, it made me wonder if I could legally take delivery of barrels of oil in my back yard. Typically, the exchange contract is quite specific about where and how delivery can be made, and “in barrels shipped to your backyard” isn't an option. See, e.g., the delivery procedures here: https://www.cmegroup.com/trading/energy/crude-oil/light-swee... Also, “barrels” are just a (traditional for t…
You've dashed all my hopes for a quick buck, but thank you for the enlightening information!
Re: I tried to buy an actual barrel of crude oil (2015)
#49NPR's Planet Money also bought some oil: https://www.npr.org/sections/money/2016/08/26/491342091/plan...
I think Planet Money also bought a mortgage backed security a while back when things had already gone south. They tracked the houses involved and their history. It was interesting to see the investment tied to specific homes, and etc.
Toxie. Here are the relevant episodes:
https://www.npr.org/sections/money/2011/06/01/131077279/toxi...