Oil Prices, Energy Trends & What Comes Next
They are looking to jump the gun for any excuse. Prices have now surged 8% in the last 48 hours.
Oil prices go crazy as Saudis go to war in Yemen
Oil prices go crazy as Saudis go to war in Yemen
Nuclear power is a Pandora's Box. I'm reluctant to appear as a supporter. Despite that, it is clear that as more alternatives become available, the value of oil and coal will decrease.I also think "deals" and "frameworks" seem to be risky, especially so in that region.
But hell ya it should drop prices. If it doesn't, and they are actually using nuke for power, then the market is definitely fixed.
I don't know if this really really has anything to do with nuclear power though. I heard they promised oil companies deals if they would help this go through, so I think it weighs more on them being able to produce more over there (which makes no sense right now since we have to many reserves).
I think of the Federal Oil Reserve as a collection of Platinum Hits that you might find from a Sony or xbox. It's aquired when the price is low enough. I'd bet not at the convienence of the government.
Those are international companies that are drilling and extracting the oil to be sold on a global market. The idea that it is "ours, " is finished as soon as the company start drilling the oil.
Those are international companies that are drilling and extracting the oil to be sold on a global market. The idea that it is "ours, " is finished as soon as the company start drilling the oil.
Oil prices fall as Saudi Arabia reports record output
Crude prices dropped on Wednesday after Saudi Arabia reported record production of 10.3 million barrels per day in March, a figure the country's oil minister said was unlikely to fall by much.
Crude prices dropped on Wednesday after Saudi Arabia reported record production of 10.3 million barrels per day in March, a figure the country's oil minister said was unlikely to fall by much.
Shale Oil Boom Could End in May After Price Collapse
Output from the prolific tight-rock formations such as North Dakota’s Bakken shale will decline 57,000 barrels a day in May, the Energy Information Administration said Monday. It’s the first time the agency has forecast a drop in output since it began issuing a monthly drilling productivity report in 2013.
Output from the prolific tight-rock formations such as North Dakota’s Bakken shale will decline 57,000 barrels a day in May, the Energy Information Administration said Monday. It’s the first time the agency has forecast a drop in output since it began issuing a monthly drilling productivity report in 2013.
I think that there were several failures here.
The oil is in the ground for a reason.
We will not be around for oil to be renewed.
The refinery is too far away
Rail cars aren't used enough. We've need more railways since so many were pulled up long ago.
The market is fixed against the consumer.
Fracking has problems.
Waste water was not disposed of properly.
Natural gas burn off to fix the price in the natural gas market.
Locally, there isn't (any?) enough pipeline inspectors in the state.
Cities and the State didn't tax enough.
Cities and towns were not prepared for the increase in workers. Public infrastructure such as garbage and waste couldn't keep up. Housing rates were obscene.
Media trumped it up as salvation for people that couldn't find work.
Finally, history will reveal the worst infraction; that the oil boom was ever a cohesive series of events.
It can be highlighted by the lack of controlling the message in regards to employment. That endless jobs & housing were available. Now, when people do leave, what will things look like?
I'd like to see the leasing agreements to know to what degree will they have accessed the oil? Do they need to drill endlessly? Not likely. How many sites are still producing? How many were capped?
Unless citizens recognize their stake in regards to oil extraction, they will just be bystanders. Left with a mess to clean up. No one to turn to. Look at New Jersey. 39.5 cents on the dollar.
The oil is in the ground for a reason.
We will not be around for oil to be renewed.
The refinery is too far away
Rail cars aren't used enough. We've need more railways since so many were pulled up long ago.
The market is fixed against the consumer.
Fracking has problems.
Waste water was not disposed of properly.
Natural gas burn off to fix the price in the natural gas market.
Locally, there isn't (any?) enough pipeline inspectors in the state.
Cities and the State didn't tax enough.
Cities and towns were not prepared for the increase in workers. Public infrastructure such as garbage and waste couldn't keep up. Housing rates were obscene.
Media trumped it up as salvation for people that couldn't find work.
Finally, history will reveal the worst infraction; that the oil boom was ever a cohesive series of events.
It can be highlighted by the lack of controlling the message in regards to employment. That endless jobs & housing were available. Now, when people do leave, what will things look like?
I'd like to see the leasing agreements to know to what degree will they have accessed the oil? Do they need to drill endlessly? Not likely. How many sites are still producing? How many were capped?
Unless citizens recognize their stake in regards to oil extraction, they will just be bystanders. Left with a mess to clean up. No one to turn to. Look at New Jersey. 39.5 cents on the dollar.
@WayneKerr, wow very well said!
I'm starting to really worry about the real estate market here for current buyers who paid a lot for their house. Officials are not really saying anything in fear of freaking people out. I think prices were way too high, but many have paid too much in the last few years which accounts for a good amount of real estate investment.
One thing I want to mention is that most of the wells in the Bakken formation only have a 1-4 year max life. I think many people still think of the standard Texas or Saudi Arabia well pumping life of 30 years or more. In those areas, oil is almost bubbling at the top and in a huge pool underneath, whereas oil in deeper shale formations need fracking in deep precise locations to tap the oil in smaller "creaks". Also, fracking in itself is expensive, so the profit margins are slimmer than most. The oil in those location are also naturally more refined, whereas deep shales are "dirtier" and need more treatment, adding to the cost. That's why they have to drill often and get many wells up and going. Guess what, the longer the price is low, the less drilling, the less wells, and not long after the oil production itself will stop. This also means servicing for those wells will not be needed (where many counted on to keep jobs here after drilling). Even if oil prices go up, there will be many cautious people, so things will probably not be the same.
As of right now, it seems people with business interests are being quite and over optimistic, but secretly, I know they are worried.
I'm starting to really worry about the real estate market here for current buyers who paid a lot for their house. Officials are not really saying anything in fear of freaking people out. I think prices were way too high, but many have paid too much in the last few years which accounts for a good amount of real estate investment.
One thing I want to mention is that most of the wells in the Bakken formation only have a 1-4 year max life. I think many people still think of the standard Texas or Saudi Arabia well pumping life of 30 years or more. In those areas, oil is almost bubbling at the top and in a huge pool underneath, whereas oil in deeper shale formations need fracking in deep precise locations to tap the oil in smaller "creaks". Also, fracking in itself is expensive, so the profit margins are slimmer than most. The oil in those location are also naturally more refined, whereas deep shales are "dirtier" and need more treatment, adding to the cost. That's why they have to drill often and get many wells up and going. Guess what, the longer the price is low, the less drilling, the less wells, and not long after the oil production itself will stop. This also means servicing for those wells will not be needed (where many counted on to keep jobs here after drilling). Even if oil prices go up, there will be many cautious people, so things will probably not be the same.
As of right now, it seems people with business interests are being quite and over optimistic, but secretly, I know they are worried.
This! I will agree there are quite a few starting to leave. I drive by a U-haul place ont he way into town. When the oil was booming they had so many trucks and trailers sitting down there with people coming in the area anddropping them off. For a month now it has sat completely empty. Not one truck has come back. I am also seeing a few homes popping up for sale and I don't even drive though the residential neighborhoods. Funny part is people are still asking alot for their homes and rent. This is what I consider "phase 1" People are leaving and hoping to get alot and break even. "Phase 2" will start here in the summer when everyone decides to leave at once. Now the market will be flooded and people will panic. Rent will drop to low prices (to a point all these apartments complexes can't go to low). Then "Phase 3" where homes are foreclosed on. Unfortunately if you wanted to sell you are going to have to sit on the fence and watch things play out. I can already see a decline in traffic coming into town within this last month.
I've not heard that about the expectancy before. I worked for a communications company that catered to oil companies, exploration, drilling and frac trucks. Halliburton is the evil that men do and those frac truck operators were mostly assholes. Aside from that. Conceptually, I know that oil is explored for, drilled and then goes into production. Wells are capped for later access or when their capacity decreases. I'll concede that shale oil is different by its nature and thanks for the detail explanation; I hadn't heard that there was a life expectancy.
New thing for the day: Learned.
New thing for the day: Learned.
Yes, though I should rephrase my statement a little, instead of no production, it should be practical production. There would technically be some oil left, but it's below the profit of even running the well. Wells have a lot of maintenance, especially in the colder regions. That's what our company does, drill and service the wells. Here's a picture, taken from a study analysis from a few years ago that can explain it. Notice how steep the oil declines in production when first pumping oil from it. Like I said before, the cost to maintain a well up north is a lot more than south, so not only do we have significantly less oil production from the wells over time, but also higher costs to keep it pumping.http://www.theoildrum.com/files/FIG01%20TYPICAL%20NDIC%20WELL%202012.png
There are a couple things, timing could not have been worse. Many of the wells that were drilled about 4-5 years ago are getting to their low if not already and with the low prices, they are or will be shut down. Even with medium to high prices, such low production up North doesn't leave much profit.