Diesel prices going up again???

[Dkevdog]

Maybe it's just me, but I couldn't help but notice that fuel prices are on the way up again- just in time for multi-thousand mile summer trips pulling trailers. Up . 13 in just a couple of days here to about $1. 63. What BS excuse does the oilman have for us this time:{ !



Kev

 

[DOWG]

Oil was over $32 a barrel last week. When the price of the raw product goes up, so does the finished product. Not good for you, but good for me.



"If you don't have an oil well, get one!"

 

[Blakers]

I'm sure the prices will go down soon. There's been two refinery fires in the last week that made the price of crude spike. Not sure why a refinery fire would make crude go up, but the comodity traders are money people, not oil people.



Prices in the oil industry swing so much that nobody knows what to do. Not many people want to risk drilling wells when the price may go down tomorrow. I wish it would stablize somewhere in the mid-20s so oil guys can make money, yet the price of fuel is not too high.



We need to start drilling more wells in this country and I wish we would start doing it real soon.



Blake

 

[DOWG]

What's interesting, and sometimes maddening, is that market hysteria adversely effects not only oil prices, but stock prices as well. I drill oil & gas wells for a living. I don't work on drilling rigs, I drill and own wells with my partners. $20 a barrel oil economics work well for the producers (domestic & foreign) and also is acceptable to the U. S. economy and consumer.



A real problem is those who don't want and oil & gas well in their "backyard" yet still want the benefits. The oil industry has changed dramatically in recent years with respect to environmental concerns. I keep my wellsite locations clean for the simple reason that spilling my product wastes money, costs money to clean up and makes the landowner unhappy. Rule #1 is keep the landowner happy. Rule #2 is see Rule #1. The last thing an oil company wants to do is make a mess; it's very costly.



The biggest oil spill the world has ever seen is the oil dripping from our cars & trucks drving down the highway. Just check the posts on the crankcase breather bottles.



The other real problem is that most oil & gas reserves are located in poor countries with dictators and/or repressive regimes. How ironic, that those countries with the greateast mineral wealth have the poorest populations with the least to show for it. Iraq is just one example (Mexico is another). As long as these repressive regimes stay in power and terrorism is condoned, the oil prices are going to remain artificially high and volatile. In the short run, it creates a higher rate of return for the risk I take, but in the long run the higher prices are not good for you or me.

 

[lschultz]

up down up down up down

They opened a new HEB in Bastrop selling diesel. I think it started out at 1. 28 Shell just down the road was 1. 32 I come thru that afternoon Shell 1. 28 HEB 1. 26 Next morning HEB 1. 24 Shell 1. 26 Now Shell 1. 32 HEB 1. 29 All the other stations stayed around 1. 32 while this was going on. Who knows what it will be this evening when I go through. One day it is this $$$ then the next day they change it to this $$$ and they have the same diesel in there tanks. One of these days I'm gonna loose it and take corrective action cause after all I am

 

[Blakers]

Originally posted by DOWG

A real problem is those who don't want and oil & gas well in their "backyard" yet still want the benefits.

People are so stupid these days! I have always wanted an oil well in my back yard... . and front yard!!



My college room mate in Warren, Pa has 4 oilwells on 4 acres - 3 in his front yard and 1 in his backyard! And his water well is 4 FEET away from the oilwell in the backyard - and it's a good water well. Actually it was drilled by the oil rig as a source of water for drilling the oil well.



I have been an oil historian for 30-some years and have been to places where wells were literally drilled within a couple feet of each other. The ground was covered with oil. The creeks were covered with oil. Pipelines were laid in the creekbeds. Wells were drilled on islands and piers built out into the creeks with wells on them. This was in the 1860s. Within 30 years the forests and meadows had taken over. And today it is the most pristine and beautiful place I know, with plant and wildlife flourishing. You would never know that the biggest oil booms ever took place there.



To me there is no better smell in the whole world than Pennsylvania crude oil!



PS - see my oil history site.



Blake

 

[cap-n-cray]

Leaks

Isn't the Earth the biggest leaker. Does oil leak out of the ground and oceans all the time? And it has been doing it for a long time.



Fuel prices here have stopped at 1. 699.



Cary

 

[OnlyCummins]

Another possible cause for the 'spike' in prices may be the anticipation of OPEC's (your favorite cartel) output cuts which were agreed on a couple of months ago but don't go into affect until this month. FWIW, OPEC has met again this month to decide on output for end of the 3rd qtr. I think they decided on further cuts. OPEC's production cuts aim to keep oil in the $25-$28/brl range (based on a 'basket' of crudes). They've got a pretty tough job anticipating demand & supply so sometimes (seems alot of times!) they miscalculate. It doesn't help that non-OPEC members such as Russia, Mexico & Venenzuela (highest output non-OPEC members but there are quite a few smaller producers) throw a "monkey wrench (oil-soaked)" into OPEC's calculations as well. Russia especially often ignores OPEC's 'guidelines' (thank you very much!). Just another perspective?

 

[radar doctor]

Oil QUESTION

It seems to me that way back when the Alaskian Pipe Line was Built were we not needing Oil? and wasn't it suppose to bring the costs of oil down in this country? Wasn't that Oil suppose to go to this country? Someone said it was going to Japan, Is that correct?Soon Soy Oil will be on the Market, Will we be Made to Purchase it? Will that Lower the Price of Oil??They say we are Low on Natural Gas and that Price will go Sky High This Fall. . I Wonder if the OIL Price will get on and ride along too?I'd love to see Diesel Fuel down around $1. 25 a gallon. I think most people would take vacations again and drive through out the country thus bring out Country out of the slump and put more money back into our economy. . I wonder if anyone ever thought of Hooking up a Solar Panel to our Trucks, That would keep things Clean and the cost surely would be Minimum???? But then we would miss the ROAR and the smell of the Burnt fuel. So you tell me???What do we want???? ARE WE ALL THINKING NOW????Oo. Oo. Oo. Oo. Oo. ???

 

[Blakers]

Originally posted by OnlyCummins

OPEC has met again this month to decide on output for end of the 3rd qtr. I think they decided on further cuts.

A few days ago they voted to not cut production.

It seems to me that way back when the Alaskian Pipe Line was Built were we not needing Oil? and wasn't it suppose to bring the costs of oil down in this country? Wasn't that Oil suppose to go to this country?

Yes it did go down for several years. The mere thought that the United States may have more of its own sources of energy puts a shiver into the souls of the arabs. Many times they panic and hush up any thoughts of supply cuts or price increases.



Just wait 'til Iraq really starts pumping oil!

 

[illflem]

Originally posted by Blakers





Just wait 'til Iraq really starts pumping oil!

Don't hold your breath till the war is really over. The North Iraq pipeline was blown up in two places a few days ago, same day it was supposed to restart pumping for the first time...



Another factor that is sneaking up on us slowly and I feel will get much worse is the world wide devaluation of the US dollar. Everything will start costing more. Rightfully so it seems that the currency traders don't like the idea of our massive and growing daily trade and tax deficits. The administration's new tax cut may end up helping the Euro-dollar and Yen more than the US taxpayer. Drilling more domestic wells will certainly help with the trade deficit.

 

[jlhartak]

Most of the Alaska crude goes to California, ... you know, the place where they won't let any offshore drilling take place and they have more cars than any other 3 states? We have several billion bls. on the North Slope in a place called ANWR. if you want to blame someone for high gas and diesel prices you need look no further than those environmentalists who continually block the passage of a ANWR exploration bill in Congress!



DOWG you have it right, I worked for a oil co. in Alaska for over 26yrs. AK requires reporting and cleanup of ANY! amount of spilled hydrocarbons or other hazardous substances. Open reserve pits have been cleaned up and now grow grass and ducks. Enough Soap Box.

 

[Scot]

I have been out of the loop for about 17 years since graduating college with a degree in Geology. (about 5 months after the great '86 price crash. D'oh!) At that time, some were on a big kick about "non biogenic natural gas" that was theorized to be everywhere in great abundance. So discounting that, we have a finite amount of petroleum that will run out eventually. The date that happens keeps moving forward as new resources are found and better methods are discovered to produce what we have found.



My question is: why not continue to buy every drop we can from other countries and thus delay the day of reckoning?

 

[Blakers]

Scot,

I know what you mean... I graduated from college in 1981, just before the whole oil business took a crash. I never got into it and went on to other things.



As far as your suggestion of using up everyone elses oil first, it sounds good, but we need to have our own supply for backup and to use for leverage so they don't control the price. Even if we don't use that much of our own oil, we need to have it available in a short notice.

 

[radar doctor]

More Input

Hay Blakers, I agree with what you said. we do need a Back up and I wonder if the U. S. isn't been doing that for years. I understand somewhere in the South the US has caves or underground OIL storage. It's probably for the Military. . Why dig it out of our ground if we can buy it cheaper overseas ? Let's save ours and use there's... But then is this causing a problem for the people who work at home in this Field???WE DO NEED TO ADDRESS THAT. . TtHIS NATION IS RUNNING OUT OF TOO MANY JOBS AS IT IS... I have a friend that works in WYO in the Gas fields and he tells me that the US Navy has thousands of acres of which they are getting this gas out of. I wonder if there really is a shortage of Natural Gas??What do you guy's think???