Valero corner store at Huffsmith-Kohrville and Boudreaux for my fellow losers in Tomball and burbs.
quote:Right out the back of Glennloch ftw
Valero corner store at Huffsmith-Kohrville and Boudreaux for my fellow losers in Tomball and burbs.
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A couple stations around 518/Dixie Farm touting $1.97 as their cash only price.
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Hey yall we should buy a tanker truck full and wait till the price goes back up. Profit!
Who's with me?
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I was thinking of asking this question yesterday, and it's an uninformed one, so please forgive me. Why are gas prices so low and why is oil so low? Is this an attempt by the federal govt to put it to the oil cos and stop shale production and take the urgency off of the XL?
quote:FTFY
I was thinking of asking this question yesterday, and it's an uninformed one, so please forgive me. Why are gas prices so low and why is oil so low? Is this an attempt by thefederal govtSaudis toput it to the oil cos andstop shale productionand take the urgency off of the XL?
quote:Should've stopped here.
I was thinking of asking this question yesterday, and it's an uninformed one, so please forgive me. Why are gas prices so low and why is oil so low?
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Should've stopped here.
quote:don't leave out the fact that oil companies generally have good health care plans. so, the more people the gov't can oust from those companies, the more people they can get in their health care plan. #classicobama
I was thinking of asking this question yesterday, and it's an uninformed one, so please forgive me. Why are gas prices so low and why is oil so low? Is this an attempt by the federal govt to put it to the oil cos and stop shale production and take the urgency off of the XL?
quote:this is really a case of supply and demand unlike some of the other oil busts in the past. demand is off globally.
sorry guys. didn't mean to ruin your highbrow discussion on the price of gas at Huffsmith Kohrville.
quote:Asking a question isn't trying to get informed? As I said, he should've just stopped his post with his question. But he went on to say something crazy.quote:
Should've stopped here.
Yes. Far better to stay uninformed than actually admit to it and try to get informed.
quote:true cost of production is certainly far lower. real cost in terms of funding their budget is higher than people think. but, the reality is the Saudis have a longer term view than we do. our country is subject to chasing Wall Street every qtr. the Saudis are looking at time horizons in decades.
From my understanding, OPEC, but especially the Saudis, are refusing to cut production to keep prices higher; as they refuse to give up market share to non-OPEC nations (US, Russia, Venezuela, etc..).
Saudis price to produce is lower than the price to produce elsewhere, including here, so the drop in price doesn't hit them as hard as other places. Therefore, they oversupply the market place, drive the price down, and increase their own market share when they force others to cut production.
quote:Cannot be overstated.quote:true cost of production is certainly far lower. real cost in terms of funding their budget is higher than people think. but, the reality is the Saudis have a longer term view than we do. our country is subject to chasing Wall Street every qtr. the Saudis are looking at time horizons in decades.
From my understanding, OPEC, but especially the Saudis, are refusing to cut production to keep prices higher; as they refuse to give up market share to non-OPEC nations (US, Russia, Venezuela, etc..).
Saudis price to produce is lower than the price to produce elsewhere, including here, so the drop in price doesn't hit them as hard as other places. Therefore, they oversupply the market place, drive the price down, and increase their own market share when they force others to cut production.
quote:the first part is not really true. the saudis weren't speaking for OPEC. OPEC couldn't agree on who would actually cut production so the saudis said **** it in a manner of speaking.
The Saudis, essentially speaking for all of OPEC, have refused to cut production in an attempt to maintain their market share and also cripple the Russians (which seems to be working as inflation nearing hyper levels is starting to take hold and the value of the Ruble is falling at a fast rate than oil with interest rates hitting 17% this week). Other members of OPEC cannot maintain these levels because their cost of productions and, in the case of nationalized oil countries, their entire budgets are base on $90-$150/bbl oil prices. From the recent chart that I saw (and can't find for the life of me), Kuwait is the cheapest OPEC producer, budgeting at around $70/bbl.
The US is seeing even greater reduction in price at the pumps because our production has skyrocketed and we are not allowed to export domestically drilled crude to the global market. We are starting to see larger numbers of shuttered wells and rigs as oil has fallen closer to $50/bbl. The expectation that it could fall below $40 is not a baseless one in my opinion.
Toss on top of all of this that the US dollar is the strongest that it has been in nearly 3 years, with a 7.7% increase in strength since the summer alone. With the world economies declining and/or becoming unstable due to financial or political unrest, America's increasing economy, oil prices falling, and more and more dramatic terrorist stories hitting the news wire daily, the global financial picture is about as clear as mud and very unpredictable.
quote:yes, Saudi spoke for them. but, the realities of what happened at that meeting were a bit different.
Article I saw kept referencing the Saudi rep., from it I took he was speaking from OPEC.
I think exporting oil at this point is useless as the market is already flooded. We should have learn from the exporting of NG debacle but missed the massive boat on that one and will enter the market after other countries have cornered it.
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From the recent chart that I saw (and can't find for the life of me), Kuwait is the cheapest OPEC producer, budgeting at around $70/bbl.