You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Economy
Here comes $7 gas prices, warns oil strategist in dire outlook
2022-02-21
[PHAL] Drivers greatest begin bracing for an additional surge in gas costs amid the battle between Russia and Ukraine and years of under-investment by the oil business, warns one veteran vitality strategist.

"My guess is that you are going to see $5 a gallon at any triple-digit [oil prices] ... as soon as you get to $100. And you might get to $6.50 or $7. Forget about $150 a gallon, I don’t know where we will be bv then," Energy Word founder Dan Dicker mentioned on Yahoo Finance Live.

Dicker mentioned oil costs might shoot greater to $150 a barrel, or in line to the "super spike" highs from 2007.

Oil costs have been red-hot currently as geopolitical tensions rise between Russia and the remainder of the world.

WTI crude oil has climbed 13% in the previous month to $94 a barrel. Russia produces 10 million barrels of oil a day, the equal of 10% of worldwide demand. Any lack of that oil on account of geopolitical points might trigger a tightly equipped market to grow to be tighter, pushing costs for the hydrocarbon up.

The march up in oil has pushed gas costs additional greater from already elevated ranges.
Posted by:Besoeker

#7  *snort*

One of my suppliers was just, "Hey...guess what?"
Posted by: swksvolFF   2022-02-21 16:22  

#6  Heck no, summed up nicely.

Old: here is a bid

Back Better: this is an estimate based on current prices. Actual charge will be dependent upon material receipt and current gas prices. All estimates are subject to change and should be considered out of date 7 days after issued.

"Surely KS, you jest."

It has crossed my mind to do away with paper listings and price tags and hang a digital board.
Posted by: swksvolFF   2022-02-21 14:56  

#5  /\ Exactly correct Xyz.

Low production wells (10-20 barrels per month or less) do NOT pay for operating costs. They are however, seldom plugged. The pumps just remains idle, or "non-operating." Pumps can be removed or suction rods can be pulled (see graphic).

Plugging a well however, does not mean it can never be operated again. 'Water flooding' a formation (an extraction effort) can push oil into pools and existing wells that can become operational once again.

As an aside, buying farm land can highlight the facts of oil and mineral rights. Seldom are mineral rights sold with the sale of farm land. Farm land can be sold numerous times and pass through generations of heirs without oil or mineral rights being relinquished. Legal firms make extensive efforts to contact oil and gas mineral rights heirs in attempts to "buy out" their interests. Sometimes the heirs will take the cash and run.

A second aside. Oil and gas production, or wells need NOT be on your land. As a land owner, you may have what is referred to as "community interest." The oil in a given formation may lie beneath your farm or property, therefore giving you community interest in nearby wells and leases. Such arrangements can very from state to state.

Hope my 'oil patch' rambling hasn't bored anyone :-(

Posted by: Besoeker   2022-02-21 10:19  

#4  You might be right. I have read it is cost prohibitive to restart a wellhead. Not like flipping a switch. Sometime it cost more to run a well than it produces.
Just drove thru Kansas and Colorado and a lot of Wells were not pumping.
Maybe an oil guy can chime in.
Posted by: Xyz   2022-02-21 09:51  

#3  /\ Americans shut down wells permanently.

Not to be argumentative, but "permanently" might not be the right word. When the price per barrel goes into the $90. or higher range, pumps begin to go up and down again. One hundred year old "stripper wells" are pumping right now in the midwest.
Posted by: Besoeker   2022-02-21 09:30  

#2  Don’t forget the saudis drove the American frackers out of business by flooding the market with oil. Americans shut down wells permanently. They had more effect on oil prices today than Biden.
Posted by: Xyz   2022-02-21 09:08  

#1  BIDEN and his Obama hold-overs handlers are just following what Obama did to get it to $4.00 a gallon.

Come 2022 Mid-Terms let us remind them of the simple logic of...

DRILL HERE - DRILL NOW

and AFFORD TO HAVE & USE IT
Posted by: NN2N1   2022-02-21 08:52  

00:00