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Met Winter 2021 - 2022 Banter


HoarfrostHubb
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Imagine the balls to negotiate buying oil with Iran and Venezuela, because of green concerns, while we have the oil in the ground sitting read to be produced. Meanwhile instead if creating US jobs we pay dictators to kill people. There is absolutely no sense to this Administration's policies. Feckless

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19 minutes ago, Ginx snewx said:

Imagine the balls to negotiate buying oil with Iran and Venezuela, because of green concerns, while we have the oil in the ground sitting read to be produced. Meanwhile instead if creating US jobs we pay dictators to kill people. There is absolutely no sense to this Administration's policies. Feckless

It’s just stubbornness at this point. The other side can’t be proven right in any way

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1 hour ago, Hoth said:

At some point high energy prices will create real demand destruction, but nobody can say when that will transpire. Take 2008. The economy was already in deep recession and the banking system was imploding and oil was nearing $150. It eventually imploded into the $30s. 

Anyway, I wouldn't expect EVs to be some kind of haven. Charging rates are often based on electricity produced by natural gas or oil. And take a look at the commodity price trends for many EV components. Going vertical. Battery packs are going to get miiiiighty pricey.

Even something as basic as aluminum has already had pricing go up substantially over a year and I expect it to soar even more. Intellectually, it's going to be very interesting watching this all play out. As a consumer, it's going to change some things. As an investor, I wish I had more time to really inhale all the data and analysis.

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1 hour ago, RUNNAWAYICEBERG said:

It’s the trading of oil on the markets that is out of control. Consumers get screwed, as always, while the fat cats get fatter…even off tragedy.

Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations.

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9 minutes ago, TauntonBlizzard2013 said:

Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations.

Yeah its like they magically purchased and swapped in those barrells to the tanks overnight. Aholes

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15 minutes ago, TauntonBlizzard2013 said:

Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations.

 

5 minutes ago, SouthCoastMA said:

Yeah its like they magically purchased and swapped in those barrells to the tanks overnight. Aholes

My understanding is that they are pricing based on how much it will cost to purchase fuel to refill their tanks

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Aren't oil companies sitting on nearly 10,000 leases covering millions of acres that they refuse to develop? Should the government hold the CEO of Exxon at gunpoint until they begin to drill more oil? If you are running an E&P business, would you rather oil at $40 a barrel or $150 (like after Katrina in 2005 dollars)? Which price makes your company more money?

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The price of crude oil will become self-correcting....as it gets more expensive, it incentivizes oil and gas companies to spend the money for new drilling.

It sucks in the short term though when the price goes bonkers like it is right now.

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3 minutes ago, ORH_wxman said:

The price of crude oil will become self-correcting....as it gets more expensive, it incentivizes oil and gas companies to spend the money for new drilling.

It sucks in the short term though when the price goes bonkers like it is right now.

What is the price point you think we see a stark decrease in demand? Meaning people are actively going out of their way to limit car travel 

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4 minutes ago, TauntonBlizzard2013 said:

What is the price point you think we see a stark decrease in demand? Meaning people are actively going out of their way to limit car travel 

Back in 2008, it was around 4-4.25 a gallon when it was noticeable in behavior changes, so probably something similar this time too except maybe a little more to account for inflation of income/wages since 2008. I'd guess when the national average hits 4.50-5.00, you'll start seeing changes. They are more visible in the summer when people travel than they would be in the spring.

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Canada pays about a 1.25 per gallon in taxes on their gasoline whereas the United States is more like 45-50 cents....Canada also gets most of their refined RBOB from the United States despite drilling a lot of their own oil (they send to to the US refineries), so they have to pay extra transportation costs which become larger when the price of crude oil is higher.

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47 minutes ago, TauntonBlizzard2013 said:

Someone mentioned this in OT but it’s absolutely right. The price of crude or whatever is for weeks from now, so the fact that prices are soaring immediately is ridiculous. Raising the price on gasoline already produced and in tanks and at gas stations.

Yup and look at shell. They bought a huge amount of Russian oil on the cheap yet their price at the pump has went up. The price in their tanks and gas stations didn’t increase plus they leveraged the down Russian market…so why the increase? They claim they will donate the extra profit to a humanitarian fund for Ukraine. Yea…Let’s see how that gets tracked. 

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2 minutes ago, CoastalWx said:

Getting answers to the question about how much prices would drop if we increased domestic production seems to get political. Is there a real estimate as to how much would drop?

It depends how much production increases. It's hard to just "turn on" production because it won't be immediate. We need to drill more and that takes some time. It would prob take 6-12 months to see differences. We actually have pretty good production right now as a result of the massive increase in fracking in the last 7-10 years (we tripled our domestic oil production between mid-2000s and 2018). The big drop in oil prices between 2013 and 2015 was much in part due to the big supply increase on the market due to US fracking. We haven't really expanded drilling though in the past 3-5 years. The low crude oil prices post-2014 (until recently) have made new drilling more cost-prohibitive. A lot of rigs that made good money when oil was $75 per barrel in 2014 became harder to make money on when crude oil dropped below $50 per barrel. So many of the oil companies didn't drill new wells when prices went down. They just continued to pump from existing wells drilled in the 2012-2015 period.

You could see market prices drop though if an expected increase in production was signaled. Market forces often respond to expectations in addition to just current supply.

 

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13 minutes ago, CoastalWx said:

Getting answers to the question about how much prices would drop if we increased domestic production seems to get political. Is there a real estimate as to how much would drop?

The entire thing is political though. If the election results were different .. there wouldn’t have been an invasion.. oil prices wouldn’t be anything like they are etc etc. It’s all traceable 

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7 minutes ago, Damage In Tolland said:

Not at all. It’s work time. Facts is facts . I’m not getting into politics here other than if Trump was in office Russia would never have pulled this 

You are so far gone, your pro donnie maga’s need to sit this one out. 

Your boy thinks Putin is a genius and a peacekeeper, thought he is doing the right thing invading Ukraine lol…oh and the fraud election was rigged conspiracy that lead to fake patriots attacking the capital has been debunked over and over again. Let’s not get into it…

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