From the WSJ 2-25-16, refineries in the mid-west have so much product on hand that they are having to shut down for a while until they sell enough to gain some storage space. This is more bad news for the fracking folks.
Refineries in Mid-West Have Fuel Glut
- Thread starter tomturbomatic
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vacerator
Well-known member
fracking,
But how much of that extra oil came from fracking?
No worries, China will buy extra oil, I'm sure.
But how much of that extra oil came from fracking?
No worries, China will buy extra oil, I'm sure.
polkanut
Well-known member
If that's the case, then why are gas prices heading back up?
turquoisedude
Well-known member
'cause the oil companies can't afford to pay all those bonuses to executives. Cynic? Moi???
Being in the middle of this... Southwest North Dakota... I wished something would give because a lot of us are drowning here....
Yep, gas is climbing again here. $1.49 today. I have heard some of the political hopefuls speaking of ethanol again. There is a ethanol plant setting unused in Granite City Illinois, or it was unused last I was there. They slow walk it when the price is low. I know rural people have tanks for gas and diesel. My brother not doubt filled his to the brim when it was priced low. A
Gas has been low here for a while. A local convenience store suddenly dropped from $1.69 or some such to $1.19 for two days, then it went back up for a couple weeks but currently is $1.209. Nearby big-town newspaper has a story today about a gas price-war in a smaller town near them, led by a regional grocery chain selling at $1.149.
vacerator
Well-known member
oil & gas prices,
are manipulated.
Any commodity made from crude, or refined petro chemicals should have better margins from the lower cost.
are manipulated.
Any commodity made from crude, or refined petro chemicals should have better margins from the lower cost.
delaneymeegan
Well-known member
Joshua
What do you mean you are drowning in it?
What do you mean you are drowning in it?
And oil tankers are cueing up here.
http://www.dutchnews.nl/news/archives/2016/02/oil-tankers-queue-up-at-sea-near-rotterdam/
http://www.dutchnews.nl/news/archives/2016/02/oil-tankers-queue-up-at-sea-near-rotterdam/
The reason gas is going down and there is such a surplus is a reflection of how bad our economy is doing. I know we all like to hail the low prices. Heck I just filled my Golf diesel up the other day for $25.00. Been several years since it was that cheap. People are cutting back, and if they try to raise the prices too soon demand will be even less.
Actually, China's slowing economy is what's putting a drag on producer nations' economies. They are not importing as much of anything as they were, but they are probably just doing it to screw everyone else's economies. For all of the corporate ass kissing that China gets, they are still a military threat to all other nations and to the very companies that contract with them to make their crap. I even saw, but did not eat, Valentine candy stamped made in China. Check before you buy any foodstuff to see if China is involved and remember that, because of the corrupt legislators in congress, Country of Origin means nothing because they can slaughter chickens here, freeze them and ship them to China for processing, refreeze the meat for the trip back and the chicken will still be labeled as a product of the USA.
vacerator
Well-known member
Robbinsandmyers, Turbmatic500,
Bad economy compared to last decade?
No thanks!
Turbomatic, makes sense to me.
Bad economy compared to last decade?
No thanks!
Turbomatic, makes sense to me.
Joshua's "we're drowning here"
Delaney, that means their economy is suffering badly because of the depressed oil prices. SD was producing tons of oil with fracking and other technology many deride. Low prices are impacting Houston's economy too. The neighborhood I grew up in appears now to be catering to executive types. The house next door to ours (the one that had the two LK Combos) sold last May and is up for sale again, most likely because primary breadwinner lost his job. The real estate market value stated on the house is like 17% or more less than what the asking price is now.
I got gas at Walmart on Sunday for $1.29. I just looked, it's $1.40 a gallon.
Delaney, that means their economy is suffering badly because of the depressed oil prices. SD was producing tons of oil with fracking and other technology many deride. Low prices are impacting Houston's economy too. The neighborhood I grew up in appears now to be catering to executive types. The house next door to ours (the one that had the two LK Combos) sold last May and is up for sale again, most likely because primary breadwinner lost his job. The real estate market value stated on the house is like 17% or more less than what the asking price is now.
I got gas at Walmart on Sunday for $1.29. I just looked, it's $1.40 a gallon.
Turbomatic I agree with all you said except about China isnt importing as much. In fact they arent exporting as much because of a lower global economy. Another issue with China is they arent paying anything now for our scrap metal because theyve found third world countries willing to let them remove it for free. Also, because of a lower global economy demand is down which means scrap metal demand is down. Its a trickle down effect. The whole oil thing is speculation at best. So right now there is a huge glut of oil in reserves plus tankers offshore. Thats been a factor driving prices down, they need to move this fuel because demand is low so they drop prices. because theyre producing at such a high rate first they slow the refineries down and lay off workers, now theyre really slowing production and even though there is still a glut and will be for a short time yet theyre screwing with us by raising prices because oil production has been curtailed or slowed when its a total crock. There is no shortage. Theyve been doing this to us hard since the 70's. Thats why we need to drill more wells here and become independant on foreign oil. Here in CT I havent seen fuel go up yet. If anyone should see a change its us diesel drivers because its .50 higher per gallon than high test.
launderess
Well-known member
There are so many moving targets to this "oil glut"
That it is hard to pin it on just one specific factor.
China, unusually warm winter weather, energy conservation, fracking, refusal of Saudi Arabia and other oil producing nations to cut production. A virtual black market of oil flowing out of Syira... and the list goes on.
One of the largest issues however is Saudi Arabia refusing to cut their production and IIRC actually increased. That was intended to drive out lower cost producers such as certain South American countries and of course all the new oil (fracking mostly) coming out of the USA. Thus far it hasn't worked and all we've seen is excess oil production.
The past global recession hasn't helped matters nor are the current woes in China or other places. All this with the very real problem that Saudi Arabia and other Middle Eastern nations have economies hugely dependent upon oil. As the price has dropped it is causing pain that could end up leading to civil unrest if it goes on too long.
Now that Iran is welcomed back onto the world's stage wait for it; as that country ramps up oil production we are going to see more oil looking for a home.
That it is hard to pin it on just one specific factor.
China, unusually warm winter weather, energy conservation, fracking, refusal of Saudi Arabia and other oil producing nations to cut production. A virtual black market of oil flowing out of Syira... and the list goes on.
One of the largest issues however is Saudi Arabia refusing to cut their production and IIRC actually increased. That was intended to drive out lower cost producers such as certain South American countries and of course all the new oil (fracking mostly) coming out of the USA. Thus far it hasn't worked and all we've seen is excess oil production.
The past global recession hasn't helped matters nor are the current woes in China or other places. All this with the very real problem that Saudi Arabia and other Middle Eastern nations have economies hugely dependent upon oil. As the price has dropped it is causing pain that could end up leading to civil unrest if it goes on too long.
Now that Iran is welcomed back onto the world's stage wait for it; as that country ramps up oil production we are going to see more oil looking for a home.
Drowning as in cost of living.. Rent more than tripled, buildings went up all over the place. We now have more apartment buildings and hotels than almost any other commercial structure.... 3 bedroom apartments used to go for 600. They were going for 4k at one point, now they have come down to 1800.. People are being forced to take pay cuts, yet groceries etc haven't come down in cost, there are still fuel surcharges on almost every utility... It's hard...
Rent is coming down a bit, but .. houses that used to go for 30k are going for 150k and the housing market is so inflated up here, I'm not sure how thats going to end.
Rent is coming down a bit, but .. houses that used to go for 30k are going for 150k and the housing market is so inflated up here, I'm not sure how thats going to end.
Filled up my TDI Bug tonight for $1.66/gal at Kroger. I don't remember what it was last time because it's weeks between fill-ups for me.
vacerator
Well-known member
re; TDI Beetle
That's a low price for diesel!
That's a low price for diesel!
vacerator
Well-known member
Laundress, Joshua,
True, true!!
Joshua, because oil was king in the Dakotas for the past dozen or so years, so many flocked there for work, that landlords gouged them.
What went up will eventually fall back down once the oil jobs decline there.
True, true!!
Joshua, because oil was king in the Dakotas for the past dozen or so years, so many flocked there for work, that landlords gouged them.
What went up will eventually fall back down once the oil jobs decline there.
So far here, I've only seen one station offering 87 octane at less than $2/gallon, but there are certainly more. For a change, diesel is now cheaper than gasoline.
The higher prices here are attributable to a couple of things, like taxes and cost of living. This morning's paper reported that there will be a spike in prices over the next week or so as California refineries switch over to the warm weather formula. It will be more pronounced in the southern part of the state and could jump as much as 30c/gallon.
Just when I thought I might have a crack at buying gas for < $2/gallon.
The higher prices here are attributable to a couple of things, like taxes and cost of living. This morning's paper reported that there will be a spike in prices over the next week or so as California refineries switch over to the warm weather formula. It will be more pronounced in the southern part of the state and could jump as much as 30c/gallon.
Just when I thought I might have a crack at buying gas for < $2/gallon.
It's now $1.49/gallon at Walmart, just looked.
Saw $1.59 in BC today. $1.19 (I think) @ B here.
gusherb
Well-known member
Gas was $1.25 at a few stations here back a few weeks ago, everywhere else it was like $1.40 or so. Now it's back up to $1.70 everywhere. I scoffed at the price when I saw it today, but thinking about it now I feel ridiculous because that's still nothing compared to the $3.49 I was paying two years ago on my road trip out west (and it was like $3.75 here at that time). But now that it's so cheap it's become my personal mission to get it as cheaply as possible (not at the expense of getting watered down gas though) to make up for those super high costs I paid in the years prior.
Paid US$3.23 per gallon, refilling with 98-RON (Thats 93 in the US terminology) this morning at a local Shell station.
If I could fill with the usual 91-RON (I think thats 87 in the USA?), that would cost US$2.80 per gallon.
That said, the car requires either one of the higher grades, and I've found the cost of putting in the highest grade is mitigated completely by the significant increase in fuel economy, which can be about 1-3mpg depending on driving situation and use of A/C.
Mondays are the cheapest, although the queues are so long its pointless wasting all your day waiting for some fuel.
If I could fill with the usual 91-RON (I think thats 87 in the USA?), that would cost US$2.80 per gallon.
That said, the car requires either one of the higher grades, and I've found the cost of putting in the highest grade is mitigated completely by the significant increase in fuel economy, which can be about 1-3mpg depending on driving situation and use of A/C.
Mondays are the cheapest, although the queues are so long its pointless wasting all your day waiting for some fuel.
Correction: $1.26 here.
polkanut
Well-known member
The station I patronize just raised its price yesterday from $1.49 to $1.59. They're still one of the lower priced sellers here in town.
Big oil will always find a way to rip off the consumer and the heads of the companies will not suffer although many lower down on the ladder will. All of the big corporations have the various levels of government in their pockets so their wish is law.
$1.04 at Ingles yesterday using shopping card.
vacerator
Well-known member
gas has risen to,
$1.78 here.
$1.78 here.
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