Oil prices nosedive

[gearhead]

Putin cuts price and Saudi's increase production. WTI $30 a barrel. Dow futures down 1,100 points.
But hey, gasoline prices will go down.
Everybody happy now??
https://www.cnbc.com/2020/03/08/dow-futures-drop-700-points-as-all-out-oil-price-war-adds-to-coronavirus-stress.html

[JRTJH]

Diesel dropped from 2.799 to 2.499 this week. Regular unleaded dropped from 2.379 to 1.989... Just because we bought a new "fuel efficient car" the prices go down.... Can't wait to fill the boat, but it's too early, all the lakes are still "hard as a rock on top"....

[gearhead]

haha. Same thing happened to me. Traded an almost new 1979 Pontiac Trans-Am in on a VW Scirocco. Prices went back down and we bought a Buick station wagon with plywood on the side.

[+Ruff Rider]

Diesel here in the Great Tax State of California hasn't budged one cent.

[fatcatzzz]

$2.34 here in Swansboro NC.

[gearhead]

Stock market is down to "stop limits". I think I saw RBOB gasoline at $1.15 last night. I imagine valves are being closed this week. Saudi lift cost is $4, shale is $40. Shale drillers will not be able to pay loans and will go broke. Big Layoffs.
Throw in Corona virus...
Globalists.

[+Ruff Rider]

Cruise ships have always been a place where one person gets sick and since you are on there for a week more people will get sick. I did one cruise to Alaska and had a great time but seems like more people catch something on them. Usually some kind of food poisoning. Now it's the flu. They have these poor people stuck in a ship off the coast and you should hear what people are saying. It's doomsday. Guys tying up the ship need special training. Don't let those people off in out city. The media has succeeded on scaring the public. Only 21 people have the virus out of 1,500 (guess) passengers. People are in a panic. I don't get the water and toilet paper thingy. I went to Costco the other day and had to laugh. Carts full of nothing but water and toilet paper. They are also buying every bottles of sanitizer they can carry. You cant find a dust mask anywhere LOL I am glad they don't release the names of these people who are sick. Business here are hurting. The media has riled up the crowd and people don't eat out much. It's just nuts.
Just wash your hands and you will be fine. If you are old as some of us are and have a medical condition It would be wise to stay on the down low but I am going to live like it's 1995. LOL

[gearhead]

Yeah I'm thinking media is responsible for this panic. After all there is an election soon. Things were rolling along pretty well.
We're undecided about being in crowds. We have tickets and a RV spot for the Richmond NASCAR race next month. Not sure about it. We had plans for other things to do in the area so we will likely make the trip but decide on the race later.

[+Ruff Rider]

Yeah I'm thinking media is responsible for this panic. After all there is an election soon. Things were rolling along pretty well.
We're undecided about being in crowds. We have tickets and a RV spot for the Richmond NASCAR race next month. Not sure about it. We had plans for other things to do in the area so we will likely make the trip but decide on the race later.
It would be hard for me to pass on a race at Richmond. Go and have a good time.

[+Ruff Rider]

This is funny OPEC and Russia wouldn't play nice with each other. Saudi Arabia said if you don't want to cut production than we will increase ours. I guess the stock market doesn't like none of this. I sure hope the dust clears soon so we can start making money again.

[Old Mustanger]

This is funny OPEC and Russia wouldn't play nice with each other. Saudi Arabia said if you don't want to cut production than we will increase ours. I guess the stock market doesn't like none of this. I sure hope the dust clears soon so we can start making money again.

Yea, if this keeps up I may have to go back to work! :eek:

[sourdough]

Come on guys! Worried about oil? Just had "my guy" put 2M into face masks and toilet paper...!! Oil? Ha!

[flybouy]

Come on guys! Worried about oil? Just had "my guy" put 2M into face masks and toilet paper...!! Oil? Ha!

Better "dump" that stock (pun intended) the day they come out with an immunization. Folks will have enough stock piled that sales will "bottom" out (I know, I know) for months.:hide:

[ctbruce]

So I was thinking. I know, this will be my biggest mistake. (Thanks Dad for driving this point home. RIP.) We want electric cars because they are clean and renewable. But the batteries take a lot of fossil fuel to produce and they can't be recycled. So just a different pollution. So we build a lot of windmills which are clean and renewable. But they have to be delivered by trucks which use fossil fuels and the turbines wear out. There is not a way to run the turbine generated electricity strictly to the electric cars. So that doesn't work either.

For now at least, I would hold onto my oil holdings. This is going to take a while.

[flybouy]

Chip, haven;'t you installed your's yet?

[ctbruce]

Chip, haven;'t you installed your's yet?Mine's portable and looks like this:25515

[flybouy]

Does that come in a twin rotor configuration? I need a bit more payload these days.:banghead:

[CrazyCain]

My car to and from work (40 miles) and around town is a Ford Hybrid. Gas around here is a buck ninety nine, From empty it will take a bit $25.00 to fill it. That full tank of gas will last me at least 2 weeks..I'll take the lower price..

:popcorn::ermm::hide:

[travelin texans]

The sky is falling, the sky is falling,!!!!!. The end is near!

[chuckster57]

Only if you look UP.

The end: http://hmpg.net

[edward willis]

Diesel here in the Great Tax State of California hasn't budged one cent.
Not one penny!!!!

[+Ruff Rider]

Not one penny!!!!
Nope. The governor here is a greedy bastid He is just like King Midas. Whats yours shall be mine. If you have lots than more for him LOL

[ctbruce]

Paid $1.97 for diesel this afternoon. Regular unleaded was $1.95. Smallest delta between the two in over 2 years if my memory is to he trusted.

[Gegrad]

We want electric cars because they are clean and renewable. But the batteries take a lot of fossil fuel to produce and they can't be recycled. So just a different pollution.


Just to clarify Chip, the batteries CAN be recycled. It is expensive and energy intensive to do so, but they can be recycled as opposed to disposal.

[Roscommon48]

Everyone isn't happy....my oil stock went from a high of $15 to under $5.00. Oh well, life goes on.

[flybouy]

Just to clarify Chip, the batteries CAN be recycled. It is expensive and energy intensive to do so, but they can be recycled as opposed to disposal.

I look at battery powered cars light glow sticks, when they stop producing power throw the whole thing way. In most instances when the battery needs replacing the cost exceeds the value of the car.

[LHaven]

But hey, gasoline prices will go down.
Everybody happy now??


Getting so, so tired of the feckwit pundits who immediately follow this announcement with, "...and this is why this means trouble for you!"

[jsmith948]

Huh - I don't have any stock - oil or otherwise.
Worked all of my life and am retired with a good Teamster pension.
The cost of diesel here in central Cal has gone down about $0.55 per gal at Costco in the past 3 or 4 months or so.
I'll take the cheaper prices - thank you very much.:D

[msubobcats]

I seriously had been expecting our prices here to drop a bit. I think I have seen a $0.02 drop. Costco is $2.24. Still really early so ghessibg it will go down soon...

[flybouy]

Huh - I don't have any stock - oil or otherwise.
Worked all of my life and am retired with a good Teamster pension.
The cost of diesel here in central Cal has gone down about $0.55 per gal at Costco in the past 3 or 4 months or so.
I'll take the cheaper prices - thank you very much.:D

While you may think you're pension is untouchable and unaffected by the stock market I wouldn't count on it. While there are literally hundreds of Teamsters Pension plans check out this one in Pittsburgh . https://www.post-gazette.com/business/money/2019/07/19/Teamsters-pension-fund-cuts-benefits-western-pennsylvania/stories/201907190085

When Hoffa went into Vegas with the mob he nearly bankrupted the pension. Everything in the economy except money you hide under you're mattress is in one way or the other affected by the stock market. And while the money under you're mattress may not physically disappear in a stock market crash the resulting runaway inflation will make it virtually useless.

I'm not an economist by any means but it amazes me how so many "Young folks" are so anti oil and coal and don't even realize how much of their 401Ks or retirement benefits are tied into that stock.

[sourdough]

While you may think you're pension is untouchable and unaffected by the stock market I wouldn't count on it. While there are literally hundreds of Teamsters Pension plans check out this one in Pittsburgh . https://www.post-gazette.com/business/money/2019/07/19/Teamsters-pension-fund-cuts-benefits-western-pennsylvania/stories/201907190085

When Hoffa went into Vegas with the mob he nearly bankrupted the pension. Everything in the economy except money you hide under you're mattress is in one way or the other affected by the stock market. And while the money under you're mattress may not physically disappear in a stock market crash the resulting runaway inflation will make it virtually useless.

I'm not an economist by any means but it amazes me how so many "Young folks" are so anti oil and coal and don't even realize how much of their 401Ks or retirement benefits are tied into that stock.



To piggyback on what Marshall said, I would just point out another aspect of a "pension" that many depend on and consider it part of it; medical insurance and their premiums. In my life part of the bargained for benefits was company paid healthcare. Toward the end (right prior to my retirement), we went into a merger (reverse buyout) and became a different company - bargaining contract still intact. Retired for about a year and a half and got a certified letter in the mail advising I was being sued by the new company over my healthcare benefits. In a nutshell it was a preemptive strike to assure all retired employees could not sue the company when they removed our healthcare benefits....and they did. It then cost me $1600 per mo. that was not in our retirement planning. Thankfully we could cover it but for many that would be devastating. And, many of those plans are heavily invested as well. I've seen several pension plans go belly up in my life.

[rlh1957]

Enjoy while its low, bank the difference and save, save, save.
Again you will see the unhappy side of $3.45/gallon. Always dies.

[gearhead]

I am happy to pay a price that a competitive company makes a decent profit on. If it costs $40 a barrel to lift oil I don't mind the reasonable cost of fuel.
What I don't want is to see Saudi or Russia in the position to put a choke hold on our economy. We are discovering that China produces a big percentage of our medicines. There seems to be agitated voices saying we need to fix that. Of course we do.
The only reason we got to be the worlds biggest oil producer is that the price of oil got high enough to spur the creative genius of oilmen, mostly George Mitchell. Fracking has been around a long time but combined with horizontal drilling and multiple drill sites in very close proximity has got us to number 1. Do they have issues? Yes, mostly their financing methods.
Give me $60 oil everyday all day. Y'all want to drive disposable cars powered by batteries with components mined by children in third world countries it's on your conscience.

[gearhead]

Huh - I don't have any stock - oil or otherwise.
Worked all of my life and am retired with a good Teamster pension.
The cost of diesel here in central Cal has gone down about $0.55 per gal at Costco in the past 3 or 4 months or so.
I'll take the cheaper prices - thank you very much.:D
I doubt there is a pension plan in the country that doesn't include stocks. I would imagine the actuarial gurus are freaking out trying to determine when the market losses and the reserve values cross paths and they are looking for a window to jump out of.

[JRTJH]

...
Give me $60 oil everyday all day. Y'all want to drive disposable cars powered by batteries with components mined by children in third world countries it's on your conscience.

I agree !!! Give me a Coleman "white gas lantern" over a battery operated one any day.... Same with cars, truck, motorcycles and ATV's/UTV's....

[flybouy]

Enjoy while its low, bank the difference and save, save, save.
Again you will see the unhappy side of $3.45/gallon. Always dies.

Years ago on the cusp of a huge surge in oil prices a struggling new airline company spent a great deal of their capitol on jet fuel. It was a huge gamble that could have ended in bankruptcy. The oil prices shot up and all the other airlines had to substantially raise fares. All but one, Southwest. That was the year they grew and became a dominate airline. I was happy to see the US Government buy up several billion dollars worth of cheap OPEC oil and stock it away in the oil reserves. It didn't get a lot of attention but to me it was the same sort of irony like the CIA buying up the Titanium from the Soviet Union to build the SR71 Blackbird to spy on them during the cold war.

[gearhead]

Ah yes, Southwest Airline. Previous name was Trans Texas Airline, TTA. Also nicknamed Tree Top Airline.
Sounds like we will be buying low priced oil to fill the Strategic Reserve.

[gearhead]

I agree !!! Give me a Coleman "white gas lantern" over a battery operated one any day.... Same with cars, truck, motorcycles and ATV's/UTV's....
I never had a battery lantern last more than a year. But I have a white gas Coleman lantern that must be 50 years old.
Burned some diesel and gas yesterday. Three hour drive to Louisiana to mow the family cemetery for four hours, and 3 hours back. Felt like an all day project, and it was. 20+ gallons of diesel and 3 gallons of lawnmower gasoline. When I got home, a bathtub full of hot water and 2 glasses of bourbon.

[JRTJH]

…
When I got home, a bathtub full of hot water and 2 glasses of bourbon.

Can't call bourbon "alcohol free" but you sure can get "gassed" on it.

[gearhead]

Yeah, I wonder what the carbon "load" of grain alcohol is.

[Fuzion 369]

No it hasn’t Moved in Cameron park, ca. Either

[gearhead]

So the price of fuel hasn't moved in California? Why is that?

[GHen]

Fast to go up, slow to go down.

Up in Washington I’m seeing station near the freeway down $0.30 a gallon for diesel. The ones in town haven’t moved much.

[Justvisiting2day]

Anyone that gets fuel for less that 2.70 a gallon, makes me very upset, But then again I have to thing of theprice gouging state of califorication just south if us and the needless pain in the ??? north of this cheating taxing dumpster diving state of organunmuss. Oh let us pay a tax for the elect cars.. Oh ya got me on a roll. Folks if this place wasn't paid for and I was 40 years younger I would move. BUT WHERE?

[travelin texans]

Saw gas at Costco in Tucson yesterday for $1.98.
As for the west coast gouging, driven to the PNW twice since Christmas & you folks can have that entire left coast, top to bottom, I can barely afford to drive through let alone live there.

[notanlines]

$1.66 regular at Costco, Sams and Kroger in Memphis. $2.09 in south Florida.

[busterbrown]

$1.57 this morning for Sam's grade regular in Southeast Michigan. Considering our summer trip to Alaska is almost a "for sure" postponement, I can only imagine how good it would have felt to fill up with 30 gallons of fuel for under $50 USD. Oh, to relive a fillup from 1995 again.

[GHen]

Diesel dropped to $2.39 today in central Washington state.

That price would have been nice for my Arizona trip in February.

[Fuzion 369]

Wow you are all killing it. Like $3.55 best price around

[notanlines]

Regular $1.14 Sladen, Mississippi just off US 72 highway. Come on diesel! We're ready.

[sourdough]

Son called from outside the Dallas area and regular was 1.17.

A few days ago on a trip to our house in NM (sold!!) stopped for fuel in a town along the way (rural area). Prices in the previous town were about .30 cheaper than this town and there was a gasoline refinery sitting next door! (2.62 if I recall). Our mountain town was 2.39.

Here in our little W TX berg fuel has dropped to a historic low of 2.19!! Makes me wonder if we will get back to the days when my dad would stop at this little Cosden station (the pumps had the little glass globe tops) in the middle of nowhere in NM and get gas for .19! Wouldn't that be nice? Fill 'er up and go.....hmmm, where? Everything's closed or you will get thrown in jail..... I would go outside and spread fertilizer but figure someone would blame me for spreading more than that, and, with our wind I would only be fertilizing the yards down the street.:facepalm: Ah hah!! I think I'll grab up a few armloads of weapons and give them a good rub down with the old Brownells Rust Preventive #2 - that should keep me busy for the next couple of weeks...… :D

[JRTJH]

Regular $1.14 Sladen, Mississippi just off US 72 highway. Come on diesel! We're ready.

GasBuddy.com reports COSTCO in Detroit is $1.14 also. I never thought I'd see gas in Michigan as cheap as north/central Mississippi. A couple years ago we bought regular gas in Horn Lake for $0.999/gallon. Last summer, not so cheap, but Memphis was still cheaper than "out west"...

[spade117]

Lowest I've seen around my area is $2.25.

[Roscommon48]

diesel fuel is the same as it has been for the last few weeks here in tucson, around $2,80

[Fuzion 369]

3.59 diesel today. Long way to go!

[Bolo4u]

My area of NorCal, the casino a couple minutes from my house has Diesel now at $2.59

[Fuzion 369]

Wow. That was mobile east of Sacramento. The casino was 3.55

[ADQ K9]

$2.59 here in Anchorage still $5.49 in Deadhorse at the end of the road.

[Northofu1]

Regular unleaded in the GTA is $.56/litre so $2.24 / gal CAN. Hasn't been that cheap for a very long time.
In December 2015 I was in Detroit for a Habs / Dead things game, was $1.65/gal. Sometimes I curse coming back over the border. :lol:

[jerseyphil]

I got Diesel for $2.15 at a "Fuel One" in Milltown, NJ.

[jsmith948]

Here in central CA the price of diesel is 2.799 at Costco and Pemex

[gearhead]

Agreement reached by OPEC+ to cut production. Sounds like President Trump brokered the compromise this weekend.
https://www.bloomberg.com/news/articles/2020-04-12/oil-price-war-ends-with-historic-opec-deal-to-cut-production

[GHen]

Washington state lowest prices
Diesel $2.19
Regular $1.33

It will be interesting how fast it goes back up.

[CrazyCain]

AT this moment, the corner gas station price is .96(nine) per gallon

[LHaven]

Agreement reached by OPEC+ to cut production. Sounds like President Trump brokered the compromise this weekend.
https://www.bloomberg.com/news/articles/2020-04-12/oil-price-war-ends-with-historic-opec-deal-to-cut-production

"Historic OPEC deal to cut production?"

What a knee-slapper for those of us who remember why OPEC formed!

[GHen]

It will take awhile before the price comes up enough to cover the us oil production losses. There’s going to be a glut of oil in reserves for a couple months.

[chuckster57]

It will take awhile before the price comes up enough to cover the us oil production losses. There’s going to be a glut of oil in reserves for a couple months.


I’d like to think so. It takes forever for the price to drop here in Ca but only hours for it to go up.

[Fuzion 369]

Interesting! Still taking forever to drop.

[dutchmensport]

I haven't heard an airplane fly over my house in weeks now! The farmers are out in force preparing their fields right now though. I guess someone has to put pollution in the air. Maybe someone will design an electric farm tractor that is capable of plowing 500 acre fields with a 7 bottom plow on a single charge!

Where one part of the economy takes a hit, another area benefits. With fuel prices lowering right now, this is good for the farmers who are now working fast and furious to get their crops planted. And farmers = food for us. Think about that!

Regardless of all the yuppies and the guppies and tree huggers, America still depends on oil. How do you think those organic green beans and tomatoes were delivered to the store you purchased them from?

[Fuzion 369]

Yep yep! Go farmers!

[sourdough]

I haven't heard an airplane fly over my house in weeks now! The farmers are out in force preparing their fields right now though. I guess someone has to put pollution in the air. Maybe someone will design an electric farm tractor that is capable of plowing 500 acre fields with a 7 bottom plow on a single charge!

Where one part of the economy takes a hit, another area benefits. With fuel prices lowering right now, this is good for the farmers who are now working fast and furious to get their crops planted. And farmers = food for us. Think about that!

Regardless of all the yuppies and the guppies and tree huggers, America still depends on oil. How do you think those organic green beans and tomatoes were delivered to the store you purchased them from?



Now, do you really think those things showed up in the store via oil? I thought they were all moonbeamed in by these gigantic, ugly, destructive solar arrays going in around us! Destroy the ground, landscape, wildlife and require tons of taxpayer "assistance" so they can "sort of" produce electricity at the same cost as fossil fuels....oh, but wait, there is no infrastructure out in that pasture and....WE have to pay for that too.

Our farmers are running too. I live in the middle of it and nearly everyone I know owns farms. Thankfully this year they are doing a MUCH better job running the sandfighters to keep down erosion as they prepare to plant....maybe the lower fuel costs?

[gearhead]

Modern agriculture has similar issues as oil, they are too good at production. Last year the dairy farmers were crying for government help, I don't remember how that over production issue was resolved. Now the pork producers are begging the FDA to buy product.
Heaven forbid we help those nasty oil companies. Buying crude oil at these cheap prices to fill our strategic reserves makes too much sense.

[gearhead]

Danny....what's a sandfighter?

[notanlines]

It is a piece of equipment used mainly in very windy parts of the country to keep the wind from blowing away the recent planting before they emerge.

[gearhead]

^^^Interesting...thanks.

[GHen]

Oil prices really took a dump this morning, down to $11 a barrel. Wish I could prepay for 500 gallons of diesel if the pump prices follow...

[notanlines]

Just posted: Dropped below $2.00 for some Texas oil about an hour ago. This is NOT good!

[flybouy]

Oil closed at NEGATIVE $37.63 a barrel. First time in history oil traded below zero dollars, down over 300%. That means oil producers paid refiners not to take delivery because every storage facility is full.

Don't look for fuel stations to pay you to fill up but it will be interesting to see where the pump prices go.

[JRTJH]

Oil closed at NEGATIVE $37.63 a barrel. First time in history oil traded below zero dollars, down over 300%. That means oil producers paid refiners not to take delivery because every storage facility is full.

Don't look for fuel stations to pay you to fill up but it will be interesting to see where the pump prices go.

Pump prices probably will not drop below the "average market price" in a given area, sort of like the gas wars of years gone by that were "usually driven by pricing on the stations in visible range (if the guy across the street lowered his gas a penny, we will too). Most "fuel stations" (at least around here) are private businesses, not owned by the "national chains". As such, most of them are already on "reduced hours, closed or near closing with skeleton staff". So, rather than "pay someone to take it out of our tanks" most of them will "just lock the door and go home" and you (we) can find our diesel or gas down the road.... Currently, regular unleaded is around $1.10/gal and diesel is around $2.05/gal. I'd guess with the current "economic slowdown and shelter in place" we won't see much of a fall in prices, station owners will just stop pumping before losing even more money per gallon.

Now, in the long run, if the economy opens up again, it will be "supply and demand at the local level" until things 'normalize' again. That might take 2 weeks or might take 2 years, depending on not only our economy, but the world economy to boot.

Scary times ahead for all of us....

[flybouy]

Here in "The People's Republic of Maryland" the gasoline tax is $0.3670 and diesel is $0.3745. Then add $0.184 fed tax on gas for $0.55.1 /gal and diesel fed tax is $0.244 for a total $0.611/gal. So I can guarantee the tax + what the payed for that load currently in their tanks, and the "overhead" costs (labor, rent, property taxes,utilities, etc.) will be the "lowest pump price".

[JRTJH]

I think you've got that "tax cost" right down to the "guvment ain't gonna lose no revenue"... No matter the cost or the loss from oil prices, "guvment gonna get their part"... So, yeah, if the tax per gallon is $0.61 then the price to the consumer will never be less than 0.61/gal. It's not just the "peoples republic of Maryland" but the "United Society of Michigan Citizens" that'll assuredly follow that "never a tax decrease" philosophy...

[flybouy]

Maybe paranoia setting in but I gotta wonder how much fuel (especially ethanol added) is going to reach it's "sell by date" before being consumed.

[JRTJH]

If the stations are not adding StaBil (or an alternative) some of the 58 day old ethanol (when we first started "sheltering in place" at our house) is probably reaching, or has reached, its "ready to screw up small engines" already with many more gallons to follow in the next few weeks.....

According to StaBil, their additive must be added before separation occurs. Adding StaBil to "old gas" won't recombine the ethanol or make the gas usable again.

Our Edge is now at its highest fuel mileage yet, 6 weeks per gallon....

[gearhead]

This is what is called "Contango"..when the price of a commodity is greater in the future than it is now. I sure don't know the details of how oil companies trade products. I have an ex coworker who is a trader for Shell but he ain't talking. I expect they have a complicated formula of how much they sell on future contracts, how far out, and how much is sold on spot, all that based on todays price and what they guess the future will be.
On the retail side the producer will sell to distributors who sell to the stations. Our local Chevron distributor also owns a few stations so he gets paid coming and going.
With maybe a few exceptions Shell products are distributed in east Texas, the Gulf Coast and up the eastern seaboard a ways by Motiva, which used to be a partnership with Shell and Aramco. Aramco bought out Shell distribution in that area a few years ago. I have tried to not buy Shell since then.
I would be quite surprised if any stations were adding a stabilizer. Maybe at the distributors tank farm, but I doubt that.
I switched from Stabil, to Startron, to Chevron Marine Stabilizer. Don't know why. Advertising I guess.
Even more interesting, to me anyway, is what are the strategies for petro-chem feedstocks. How much is long term contract and how much is bought spot market. I'm an old Olefins guy...Operator on Hydrotreater and Butadiene units, then Rotating equipment. We could switch feeds from ethane to natural gasoline/condensate to naptha, to butane/propane based on costs. I'm thinking these new huge Olefins units are just ethane feed. If oil drilling collapses so will nat gas (ethane) production. Might be interesting to watch the ethylene and plastics market. Those smart phones could get real cheap, or not.
I've given myself a headache.

[sourdough]

Brent, I can see how that much thought on the subject could drive one to a headache! :D

However, looking at the negative prices for oil, which no one has ever seen, I'm assuming the oil companies are now paying the distributors to take their oil. In that case it would seem to me that the distributors could then give away the oil for free and still make money. With that in mind I think I'll call a friend that owns an oil/fuel distribution company along with some fueling locations. I'll see when he projects that I can start coming by and filling up for free - hopefully soon!:)

With that scenario in front of us I'm thinking this summer might be a go, go, go type of thing...…well, maybe not. We don't have any masks and after DW tried to follow Kay's instructions on making one from the humor thread, she's still in there with her sleeve/arm stuck to the sewing machine :eek:. I'll have to get back on that...:whistling:

[flybouy]

Danny I tell you the exact day that when you'll see that free fuel. I'm will be the day that hell freezes over. I was going to say the day that pigs fly but that may be jumping the gun!:lol:

[sourdough]

Danny I tell you the exact day that when you'll see that free fuel. I'm will be the day that hell freezes over. I was going to say the day that pigs fly but that may be jumping the gun!:lol:


You picked the better option.

I was on a contract negotiating team once upon a time and we were working on contract revisions. As we added a clause I told the team that they would agree to it "when pigs fly". The next morning it was presented and it was agreed to! (Well, with a concession or 2). Went back to the room we used as a meeting room and as soon as we walked in there was a pink pig, about a foot long, hanging from the ceiling with a spinning propeller on it's nose! One of the guys snuck back in and put that up and it was hilarious! - I've still got pics of it. So, you picked the better option.:D

[gearhead]

I sure don't know how all this will shake out but the next 6 months will be very interesting.
I'm trying to get Betty to make masks from my stash of Crown Royal bags.

[Fuzion 369]

Still paid 3.39 yesterday in Cameron park, ca. Crazy!! Love hate relationship with this state!

[gearhead]

Still paid 3.39 yesterday in Cameron park, ca. Crazy!! Love hate relationship with this state!

Kinda what I was thinking, but wasn't going there.
I wouldn't want to be in the refining business on the west coast. Except for Chevron, I think the California big name refineries have been shutdown, sold, or are for sale.

[GHen]

Once the pricing gets back to the high $30 a barrel and people are allowed to travel again, things should settle down.

[Bob R]

Free oil, glut of beef and pork due to processing plants (I guess slaughter house is not PC any more) closing down.

Pretty soon they will be handing out cuts of pork and beef (or whole critters) with that free tank of gas!!! ;) :)

bob

[sourdough]

Free oil, glut of beef and pork due to processing plants (I guess slaughter house is not PC any more) closing down.

Pretty soon they will be handing out cuts of pork and beef (or whole critters) with that free tank of gas!!! ;) :)

bob



I'm thinking the possibilities are endless! Free "stuff" after working 50 years so you can "give". Heck, I ran down today at 6am for the "seniors hour" from 6-7am to see if we're there yet (free beef/pork to go with that free petrol coming soon). The meat market manager looked at me like I was crazy; I asked "do you not watch what's going on?" That meat coming into those cases will be almost free in a day or two. He shrugged his shoulders so I told him "you have ****** (the owner - he owner moved away years ago to our detriment) call me and let me know - free is free and we should all be able to "have some".

I've waited all day but the owner hasn't called me but I'm still very optimistic. As a "vulnerable" I'm sure there will be some fantastic deals made to me (us) as this unfolds. As I think about it, you know I still haven't heard back from my friend that owns the gas distribution company to see when I get free gas. I'm sure he is just busy and trying to get things ready for me....I've already got the gas caps off the vehicles.....maybe this evening....or in the morning....or...….(All tongue in cheek)

[notanlines]

Let's get real here. $25-$30 per barrel is not a normal price. The best I could do was this site with a chart going back 70 years. I'd settle for a nice, even $50 per barrel any day.
https://www.macrotrends.net/1369/crude-oil-price-history-chart

[gearhead]

Let's get real here. $25-$30 per barrel is not a normal price. The best I could do was this site with a chart going back 70 years. I'd settle for a nice, even $50 per barrel any day.
https://www.macrotrends.net/1369/crude-oil-price-history-chart

I think about everybody would be happy with $50 crude.
Assume $40 for costs to get it out of shale and that leaves a bit on the table for a producer. If you've never seen a shale well site it's amazing how much is going on and how much equipment is involved. Just the sand trucks and the fracking pumps are enormous. First time I saw a 18 wheeler trailer standing on its end it was eye popping. It looks like $$$$. I was even in on a project where we had gas turbines driving the frac pumps.
But yeah, $50 would work for about all of us down here.
It's gonna be real ugly until we get there though.

[gearhead]

Let's see if I can get this posted. Gas turbine driven frac pumps.

[gearhead]

But this was my bread and butter for the last 5 years. A Waukesha V-12 1500HP nat gas engine driving an Ariel compressor, in the Houston fab shop, destined for south Texas. We installed 12 of these on a remote ranch near Laredo.
I kinda miss it.

[notanlines]

Gearhead, we have friendswho workcamp in Texas as a “check in/guard” at the gate of a fracking shale operation. I was surprised when we visited how many men and how much equipment was involved! And we summer in Barron County, Wisconsin, site of 12 or 15 large fracking sand producers. Lots of people from north to south hurt by this mess.

[gearhead]

Ganged up frac pumps. Lots of horsepower. Lots of money. That rock down in that hole is gonna give it up.

[gearhead]

Gearhead, we have friendswho workcamp in Texas as a “check in/guard” at the gate of a fracking shale operation. I was surprised when we visited how many men and how much equipment was involved! And we summer in Barron County, Wisconsin, site of 12 or 15 large fracking sand producers. Lots of people from north to south hurt by this mess.

That gate guard gig ain't a bad one for a couple. It's a 24/7 thing. All of them Shell used, at least one of the team were certified peace officers....constables, deputies, etc. But I've seen job postings that didn't require peace officers. It's boondocking at the extreme on some sites. I was on a 105,000 acre ranch pretty close to the river, and right next to George Straights ranch. I got lost a couple times and crossed into a neighbor ranch and I'm pretty sure their guards weren't officers. Guards definitely needed a good generator, tall snake boots, and plenty of water. And I think George had a Bombardier. Jet, not snow buggy, LOL.
Yes sir lots of good people gonna get hurt. Thanks to Russia, Saudi, and the Chinese virus. Right now the further downstream the better. Our son is an Instrument Tech for Chevron at their new Olefins plant near Baytown. Son in law is Elect Eng for Trans Canada pipeline. Hopefully they're safe.

[travelin texans]

I remember in the early 70's living in a small Texas panhandle town of about 8000 folks the main job sources were farming/ranching or various oilfield related industries when at that time crude oil made it to $20 a barrel, they shut down main street & most of the oilfield companies had a parade celebrating.

[gearhead]

Back then $20 was a pretty good price. Assuming they were drilling a straight hole and no fracking costs. The gritty little town I live in had an oil boom back in the 1920's. Lasted for quite a while. There's still people trying to hang on to it. My next door neighbor is a bug man for Halliburton. They closed their local office and he is working out of San Antonio now. Comes home every other weekend. Neighbor across the street was an engineer for Weatherford, just got laid off. Tough life.
There's still some ag here but not like it was. Some rice, soybeans, and cattle. I think the rural folks have made some decent money on pipeline easements and sand pits. Looks like they're digging half the county up for sand. The new HWY99 is being built and they are pouring huge amounts of concrete.
We will survive these times. Some way.

[JRTJH]

The same "situation" happened with south Louisiana in the early '80's when the "Gulf Oil Boom" slowed. People who were working offshore were suddenly laid off, businesses supporting the oil industry slowed dramatically and the "support businesses", motels, restaurants, convenience stores near the helicopter/ferry boat sites all closed. You could buy "oil related hardware, rigs, etc for pennies on the dollar. Even larger cities like Lafayette and Lake Charles suffered the economic downturn.

Most survived, more by adapting than by hanging onto the oil revenue. It's still not "like it was in the good old days" and folks that were driving Cadillacs on their "2 weeks on/1 week off" offshore rig schedule are working different jobs and driving Fords and Chevys...

[gearhead]

Very true. I think Lafayette was about evacuated. They had lots of offshore activity. My perception is not too much now. They have adapted though. Actually that's where I took the pic of the orange turbine driven pumps. Probably the refineries and chem plants kept Lake Charles alive.
I've seen our chem plant units shutdown and come back on line a couple years later. Not an easy or cheap process, but we did it. Our Deer Park refinery is tuned to produce maximum diesel. Supposedly that market is still somewhat alive because of exports.
I just hate to see these young families with debt and minimum savings get financially devastated.
Me losing 25% of stock market investment is different than getting laid off at age 30 with debt and kids to raise.
I think we need to get back to work.

[JRTJH]

I'm not "happy" with the stock market losses either, but looking at my own financial situation, I can survive and keep living pretty much like I have been the past 10 years...

Like you said, being 30, having a mortgage, no income, 3 kids to feed and no prospect of a job on the horizon and every day, hoping nothing serious happens to a family member.... I can understand the sense of "hopeless future"

We do need to get back to work and protect what we've got left of our economy.

[GHen]

Time will tell but I’ve seen the stock market drop badly every 10-15 years of my life and it bounces back every time in 3-5. My short term money only lost 8%. All the people out of work is a whole different problem. Big business will use this opportunity to clean house and rehire at lower wages, a lot of people will get hurt. As for the young people, I hope they don’t get used to not working, I see a lot of grand kids with their hands out for the free money....
As far as oil, the future seems uncertain to me especially with the electric car push, then you have all the electric power tools and lawn movers etc. I think oil needs to settle around $50 or so to make all the local oil people happy but usage will continue to drop. Higher oil will make my rv trips a little shorter, but there is lots to see within 18 hours of home. Heck, I could spend the next 5 years just camping within 5 hours of here and not see everything.
I’m looking for to a lot of camping and fishing. ;-)

[Fuzion 369]

Where are you at? Sounds great to be able to camp for years that close to home!

[GHen]

We live in north central Washington state near a town names Wenatchee. Less than 12 inches of rain, close to the mountains but a very arid area. In 5 hours I can be at the Pacific Ocean or in the Rocky Mountains.

[sourdough]

We live in north central Washington state near a town names Wenatchee. Less than 12 inches of rain, close to the mountains but a very arid area. In 5 hours I can be at the Pacific Ocean or in the Rocky Mountains.


Wow! You sound like you live in a place like I do! That's what I've always said; we live in the most ideal place - 5 hrs in any direction to find 1) a dab of water, 2) a tree or 3) anything but dirt. Our rain comes as mud droplets every few months.:nonono::nonono:

[Fuzion 369]

Very nice!!!