Oils settling in under $60

[boy_wonder]

This is a good thing. We will definitely see lower prices at the pump.

 

[fairdinkem]

This is a good thing. We will definitely see lower prices at the pump.

Double edged sword.

WTI @ $59 is getting close to the economic edge particularly for the OK, TX & NM shale producers. These shale wells are outrageously expensive to drill & complete. While there is no oil & gas "Bible", the following addresses just the main points. (BTW, never attempt to tell Royal Dutch or TOTAL that they did not write the oil & gas Bible)

Lower price/BBL/Mcf means fewer wells drilled.
Fewer wells drilled mean fewer completions (shale wells have low EUR's)
Fewer completions does not replace production declines
Production declines mean refining slows
When refining slows, gasoline prices go up
Gas prices go up, well, I think you have it from here.

 

[LAY THE WOODY]

"DRILL BABY DRILL!". 😁

 

[HighStickHarry]

Double edged sword.

WTI @ $59 is getting close to the economic edge particularly for the OK, TX & NM shale producers. These shale wells are outrageously expensive to drill & complete. While there is no oil & gas "Bible", the following addresses just the main points. (BTW, never attempt to tell Royal Dutch or TOTAL that they did not write the oil & gas Bible)

Lower price/BBL/Mcf means fewer wells drilled.
Fewer wells drilled mean fewer completions (shale wells have low EUR's)
Fewer completions does not replace production declines
Production declines mean refining slows
When refining slows, gasoline prices go up
Gas prices go up, well, I think you have it from here.

Oil and gas is like being married to someone who’s bipolar. Just enjoy it while you can.

 

[fairdinkem]

"DRILL BABY DRILL!". 😁

If the price is right. No philanthropic ventures here.

 

[fairdinkem]

Oil and gas is like being married to someone who’s bipolar. Just enjoy it while you can.

I was in upstream for 41-years. I just had my 41st anniversary. My wife is in violent agreement with your assertion.

 

[boy_wonder]

Double edged sword.

WTI @ $59 is getting close to the economic edge particularly for the OK, TX & NM shale producers. These shale wells are outrageously expensive to drill & complete. While there is no oil & gas "Bible", the following addresses just the main points. (BTW, never attempt to tell Royal Dutch or TOTAL that they did not write the oil & gas Bible)

Lower price/BBL/Mcf means fewer wells drilled.
Fewer wells drilled mean fewer completions (shale wells have low EUR's)
Fewer completions does not replace production declines
Production declines mean refining slows
When refining slows, gasoline prices go up
Gas prices go up, well, I think you have it from here.

Makes sense. Oil needs to be above X price per barrel. Surely the tariffs will bring the price up above that.

 

[fairdinkem]

Makes sense. Oil needs to be above X price per barrel. Surely the tariffs will bring the price up above that.

Don't think tariffs will lmpact. Example, Iraqi oil is exempt of tariffs. Don't who else is at 5his point.

 

[boy_wonder]

Don't think tariffs will lmpact. Example, Iraqi oil is exempt of tariffs. Don't who else is at 5his point.

We import Iraqi oil?

 

[Medic007]

We import Iraqi oil?

We do...

U.S. Imports from Iraq of Crude Oil and Petroleum Products (Thousand Barrels)

 

[fairdinkem]

We import Iraqi oil?

Yes we do, among others.

 

[soonerinlOUisiana]

Probably best to just ignore boy blunder. This thread shows he/she/it has no grasp of reality.