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-   -   Gasoline at $4 Coming to a Pump Near You, Unfazed by Rising Tab (https://chiefsplanet.com/BB/showthread.php?t=161736)

jd1020 11-03-2014 07:01 PM

Quote:

Originally Posted by Donger (Post 11082718)
At the same station?

I said Springfield, as in the town, as in every single station that is in the town.

TribalElder 11-03-2014 08:17 PM

When it drops down like that I buy the premium gas instead of the cheap shit ROFL

3.09 today for super premium

Bowser 11-03-2014 09:07 PM

Traveled through Arkansas this past weekend. It was strange how the gas prices varied, as much as .30/gal from town to town.

Donger 11-04-2014 09:37 AM

Oil Below $80: The First Shoes Drop

http://www.forbes.com/sites/lorenste...rtner=yahootix

We’re beginning to see the effects that the low oil prices of the past few months is having on America’s domestic energy boom. On Thursday, ConocoPhillips became the first major producer to announce it plans to scale back drilling in some of the hottest U.S. oil plays, such as the Rocky Mountains and the Permian Basin of West Texas.

While ConocoPhillips still expects to boost production from other areas, chief executive Ryan Lance told reporters the company also may cut exploration spending. Oil prices on the world market have fallen more than 25 percent since June, and the price of West Texas Intermediate crude, the U.S. benchmark, is now trading at a three-year low of $76 a barrel, down from more than $107.

Meanwhile, Shell said it plans to cut spending and eliminate jobs in its U.S. operations because of weak results from its shale projects. Shell cited the Eagle Ford play in South Texas, one of the country’s hottest drilling prospects, as an area it hopes to exit.

Like many of the major oil companies, Shell came to the hydraulic fracturing game late, and even before the oil price decline it struggled to generate the higher returns it needs as a large company. Now, with commodity prices falling, its prospects of making money in shale have dimmed.

In contrast to the caution exhibited by ConocoPhillips and Shell, independent producers have said they expect to continue their fracking operations unabated. Many smaller companies have lower cost structures and can still make money fracking at current prices.

Oil would have to fall farther before they started feeling the pinch. The concern, of course, is that’s exactly what’s happening as crude prices now hover in the mid-$70 range. As I wrote earlier, the recent slump in global oil prices was prompted by Saudi Arabia’s announcement that it had no plans to slow production and support prices. The U.S., the world’s biggest oil consumer, is importing 35 percent less crude than it did in 2005 thanks to the fracking boom.

The Saudis appear willing to use the abundance of U.S. production to allow prices to keep sliding, enabling the kingdom, which can profit from oil at as little as $30 a barrel, to grab a larger share of the global market. The move is giving the Saudis an upper hand in a long-running struggle with Iran for the dominance of OPEC.

The plan may be working. Iran’s crude oil revenue fell 30 percent as a result of weaker global prices, Iranian President Hassan Rouhanitold the Iranian parliament, according to a copy of the comments that were published on the oil ministry’s web site. As Bloomberg noted:

Iranian oil exports fell to the lowest level on record in August, according to the Joint Organisations Data Initiative. Economic growth and energy demand is slowing in China, Iran’s biggest buyer, while the Persian Gulf state’s sales are restricted by U.S. and European Union sanctions.

In other words, the Saudis may be winning on both fronts. They’re putting pressure on Iran while at the same time slowing the advance of the drilling boom in the U.S. Meanwhile, U.S. producers, having pushed output to its highest in three decades, find themselves facing the paradox of achieving energy independence: the more oil they produce, the harder it becomes to reduce imports. That’s because as oil prices fall, expensive hydraulic fracturing projects become unprofitable, tipping the scales in favor of cheaper imports.

Imon Yourside 11-04-2014 09:52 AM

Great the Saudi's are winning. :( Maybe they can fuel some more beheadings in that wonderful country.

Dayze 11-04-2014 09:54 AM

Does this mean Gas prices will go up now because crude is so cheap? (Serious question)

Donger 11-04-2014 09:55 AM

Quote:

Originally Posted by Dayze (Post 11083735)
Does this mean Gas prices will go up now because crude is so cheap? (Serious question)

No. Gasoline pricing will follow the price of crude, as always.

Donger 11-04-2014 09:56 AM

And, crude is dropping hard again today. Now at $76.73. That's a 25% drop since July.

Donger 11-04-2014 09:57 AM

Quote:

Originally Posted by jd1020 (Post 11082726)
I said Springfield, as in the town, as in every single station that is in the town.

Okay.

scho63 11-04-2014 10:00 AM

Russia, Iran, and Venezuela are all big LOSERS as oil plummets and that is a great thing!

Additionally, after nearly 6 years of $3.00 or higher gas prices under Obama, the price is now sliding well under $3 in most parts of the US, resulting in a giant stimulus for the economy.

The recent phenomenal strength of the US dollar is also a HUGE factor in collapsing oil prices as oil is traded in dollars. The better the dollar, the lower the price of oil.

If the price of gas gets down to the $2.25-$2.50 range, it will add about $600-$750 billion dollars into the economy over the next few years.......

WhawhaWhat 11-04-2014 10:03 AM

Not good for people who live around the fracking areas.

TIED5573 11-04-2014 11:53 AM

Gas below $3.00, that's Obama's fault!

Donger 11-04-2014 11:55 AM

Quote:

Originally Posted by WhawhaWhat (Post 11083752)
Not good for people who live around the fracking areas.

Why not?

loochy 11-04-2014 12:13 PM

Quote:

Originally Posted by Donger (Post 11083918)
Why not?

earthquakes

Donger 11-04-2014 12:14 PM

Quote:

Originally Posted by loochy (Post 11083953)
earthquakes

Pussy.


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