Oil and Gas discussion
- Thread starter Dally1up
- Start date
No clue why oil is us what it is. OPEC is probably the culprit. Don't know.
I turn on an injection well every day here in okc, and the corporation commission is really trying to get a grasp on what's going on with these earthquakes and the correlation with injection wells. I personally don't think anyone knows, and to be honest it can't really be proven the injection is causing this. That well they shut in was pumping 60,000 bbls per day. That is on a totally different level than the 1500 bbls a day we pump. Hopefully they don't start picking on the little guys like us and make us shut ours in. That injection well is our business. Without it we have a hard time staying operational.
Anyone who expects a 1 to 1 correlation between any rise in oil to refined fuel prices is just crazy.
Some of the rise in fuel costs is a result of lower refined fuel reserves. When gas got down to around a buck fifty, people starting buying the hell out of it. That lowered the excess supply causing the subsequent cost increase.
Not supply of crude oil, but the excess supply of refined gasoline.
Some of the rise in fuel costs is a result of lower refined fuel reserves. When gas got down to around a buck fifty, people starting buying the hell out of it. That lowered the excess supply causing the subsequent cost increase.
Not supply of crude oil, but the excess supply of refined gasoline.
chi has it right. Demand for gas picked up. While that makes demand for oil pick up, there is so much surpluss they won't move together.
It was up big yesterday because many analysts called the bottom, BP cut their capital spend, and Baker announced the single largest weekly drop in rig count since records have been recorded. Total rig count is now down over 20% which in the long term more than satisfies the excess in production, but does nothing with the current supply levels.
It went down big today because people saw the new jump in supplies and remembered the short term supply is actually still increasing...commodities can make violent moves from day to day...but I personally think the bottom has or is forming and then we will move sideways for a few months. At that point, supply will finally start to move down and hopefully demand picks up and we will see oil start to move back up.
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It was up big yesterday because many analysts called the bottom, BP cut their capital spend, and Baker announced the single largest weekly drop in rig count since records have been recorded. Total rig count is now down over 20% which in the long term more than satisfies the excess in production, but does nothing with the current supply levels.
It went down big today because people saw the new jump in supplies and remembered the short term supply is actually still increasing...commodities can make violent moves from day to day...but I personally think the bottom has or is forming and then we will move sideways for a few months. At that point, supply will finally start to move down and hopefully demand picks up and we will see oil start to move back up.
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