Oil Price

[Quik Fix 16]

Gas is now $2.60 from $1.90 when Yo'Bama part 2 started. I know the government policies have nothing to do with it, just thought it funny.
What are the prices in the fridgid NE?

 

[Old Mud]

$ $2.69 in Bath. Maine

 

[Pitou]

$2.20 to now $2.85 for on road diesel.

 

[ozodrac]

That is right, a barrel of oil was $40 to $45 during the Trump administration. During those years, the USA was oil and energy independent! Then WE THE PEOPLE voted for Joe the Biden and since then oil has risen to $63/barrel and gas has risen from $1.89/gallon to $2.59 and continues going up. To balance the cost of oil and gas going increasing in price, I look forward to a tax increase that will help balance everything out. Not to worry, as I am covering my boat with solar panels and wind generators and modifying my diesel to burn frog spit. That's okay, the gubmint keeps send out those checks to fix the financial problems of all Americans. In other words, the gubmint is stealing my tax dollars to pay me my tax dollars, so I can afford to buy expensive gas and oil. Whew! I feel much better now...
Ben Dover

 

[tunafishhkg]

That is right, a barrel of oil was $40 to $45 during the Trump administration. During those years, the USA was oil and energy independent! Then WE THE PEOPLE voted for Joe the Biden and since then oil has risen to $63/barrel and gas has risen from $1.89/gallon to $2.59 and continues going up. To balance the cost of oil and gas going increasing in price, I look forward to a tax increase that will help balance everything out. Not to worry, as I am covering my boat with solar panels and wind generators and modifying my diesel to burn frog spit. That's okay, the gubmint keeps send out those checks to fix the financial problems of all Americans. In other words, the gubmint is stealing my tax dollars to pay me my tax dollars, so I can afford to buy expensive gas and oil. Whew! I feel much better now...
Ben Dover

Careful your playing with reality!!

 

[PatriciaLynn]

I work in the energy sector and following oil and gas production and costs is important to the longterm viability of projects I sell.

We overproduced oil during the last three years. Global prices were low because of an existing production war between Russia and OPEC (among other things). The US essentially produced relatively high cost oil deposits and sold low into the global oil market, which was a shameful waste of our country's resources.

We then ended up with a tremendous glut of oil in the US during the pandemic. This overproduction, combined with the global pandemic is costing us a ton of good, high paying jobs from the oil fields around the world. Biden DID block the Keystone pipeline which was a major misstep in my opinion (time will tell). As gas prices return to historically average gas prices post-pandemic it will be interesting to see what Biden does. I hope he supports both the immediate oil industry WHILE encouraging investment in renewables.

 

[ozodrac]

Que sera sera...

 

[Dave588]

Agreed, believe me, I'm not for higher prices and stupid legislation, but for prices were seeing, we're arguing over pennies.... right now, but, future remains to be seen.

Baker in mass tried to get a multiple state fuel cap tax at $0.24 per gallon to discourage over use. They wanted multiple states because some folks cross state lines for gas and avoid sales taxes.
If they can remove all alternatives, your going to pay.

 

[WoundUpMarine]

I read this story about OPEC+ and Russia increasing production to maintain lower prices at the pump, with some good reasoning. Worth the read.

$3 gasoline could be around the corner — unless OPEC and Russia start pumping more oil

 

[WoundUpMarine]

I can tell you the state of the oil industry in the Gulf of Mexico is pretty dismal. Vantage drilling is sending a 9 year old rig(same age as my rig) to scrap. A buddy on one of the work-over rigs had their contract terminated early and the entire crew besides the marine department was layed-off with almost no notice. We have one rig decomissioned in Texas, one cold stacked in Aruba, another getting ready to go to Aruba for cold stacking, and the remaining 3 in the Gulf of Mexico will be off contract shortly. There are glimmers of hope here and there for some work, but a lot is just rumors. Time will tell what happens I guess.

 

[Genius]

Scrapping 9 year old iron, crazy. My first rig was built in the 80s and was scrapped 2015?

 

[PatriciaLynn]

I can tell you the state of the oil industry in the Gulf of Mexico is pretty dismal. Vantage drilling is sending a 9 year old rig(same age as my rig) to scrap. A buddy on one of the work-over rigs had their contract terminated early and the entire crew besides the marine department was layed-off with almost no notice. We have one rig decomissioned in Texas, one cold stacked in Aruba, another getting ready to go to Aruba for cold stacking, and the remaining 3 in the Gulf of Mexico will be off contract shortly. There are glimmers of hope here and there for some work, but a lot is just rumors. Time will tell what happens I guess.

Not to mention three of our classmates got laid off this year. Hitting close to home...

 

[Viexile]

It's as simple as supply and demand, no matter how bad you want to blame someone. Here's a thought: Gas prices of $0.53/gal in 1974 is equal to $2.99 in 2021. I can imagine how much squealing would occur if the current admin. reduced the highway mph to 55 as Nixon did and Ford put into effect. Truth is having a hard time surviving these days.

 

[Downrigga]

It's as simple as supply and demand, no matter how bad you want to blame someone. Here's a thought: Gas prices of $0.53/gal in 1974 is equal to $2.99 in 2021. I can imagine how much squealing would occur if the current admin. reduced the highway mph to 55 as Nixon did and Ford put into effect. Truth is having a hard time surviving these days.

Fundamentals hardly ever control the price if oil.

 

[ozodrac]

All figures are approximations and not to be considered absolutely accurate.
As I recall, in 1961 a gallon of gas, a quart of milk, a pack of cigarettes, a loaf of bread or a bottle of beer were all about $.25 each.
In 1961, a barrel of oil was worth about $1.60.
in 1961, a bottle of Coca Cola went from $.05 to $.10 and the U.S. decided to go to Viet Nam and the Civil War began 100 years earlier.
Adjusted for inflation, a gallon of gas @ $.31 in 1961, would equal $2.67 in 2020, but we were actually paying $2.28.
Average annual income in 1961 was about $7000/year.
Average annual income in 2020 was about $78,000/year.
The average price of an automobile in 2021, would have allowed you to buy a nice home in 1961.
Therefore, I suggest that we all stop worrying about the cost of oil and gas and enjoy our boats.

 

[Quik Fix 16]

I had someone supposedly in the know tell me that many refining operations have been shut down. Any truth to that?

 

[PatriciaLynn]

I had someone supposedly in the know tell me that many refining operations have been shut down. Any truth to that?

That is correct. There have been both temporary shutdowns and permanent closures. Demand for gasoline has remained fairly flat since 2003, so this is no suprise.

 

[Diesel Jerry]

It's not out of gas due too any shortage. Someone forgot to order or the weather is in play. This new admin is taking on a bullish tone with respect to oil. Naturally this time of year you will see draws in inventories that can effect price. We are pretty much staying in a narrow trading range though. We are at the high end of that range today. Keystone pipe is in limbo leaving Canada very upset. Admin has ordered a review of all federa l drilling permits. Saudi announced, on its own and out of nowhere, a supprise cut in production to boost prices. This may be more talk than action because exports have increased since that news. It remains to be seen how much higher we go from here. The news is not all bullish. Russia needs to produce all the oil it can and some of the other OPEC nations do not want to cut production. Iran may have oil sanctions lifted. Weaker US dollar. We also have covid dragging down the economy. You wont see last summer's prices again however. I believe we are going higher from here but i think we will stay in check for the short term.

Thanks for your insight Lou.

 

[Diesel Jerry]

Just read this entire thread. Big thanks to all in the industry for what they do and the insight.

 

[Downrigga]

I had someone supposedly in the know tell me that many refining operations have been shut down. Any truth to that?

One fifth of US production was,shut in due to the cold snap. When you shut down refineries they take a couple of weeks to start up. Russia needs to pump oil and. There is much talk about OPEC increasing production. Stay tuned.