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US oil hits 32 month high

farmo83

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There is too much up in the air right now in the market place right now. Internationally the dust is still settling from the Shell case in the Netherlands, domestically some supply is starting to open up but no one is going to spend a lot of money until we see sustained demand hold. Lastly and most importantly OPEC is keeping prices high for what production they do have online. Now that we've crossed 70 I would expect them to ease cuts and prices to fall back to 55-62.50.
 

HB2Havasu

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On a high note there will be a lot of affordable boats on the market when gas prices hit $6 bucks this summer, lol
 

Christopher Lucero

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frackers should be starting back up soon. their extractions took a l-o-n-g hiatus while the production cost was below $40...

or even when it went negative.

imagine. oil that is less than worthless.
 

Universal Elements

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frackers should be starting back up soon. their extractions took a l-o-n-g hiatus while the production cost was below $40...

or even when it went negative.

imagine. oil that is less than worthless.

Yeah keep dreaming...., when badass joe and company will come up with some other bullshit that fracking is terrible for the environment (campaign promise and Trump reversal). Just get ready to be on par with your European counterparts and pay higher prices for everything petroleum based. Oh, get used to public transportation too. 👍
 

Ziggy

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Yeah keep dreaming...., when badass joe and company will come up with some other bullshit that fracking is terrible for the environment (campaign promise and Trump reversal). Just get ready to be on par with your European counterparts and pay higher prices for everything petroleum based. Oh, get used to public transportation too. 👍
May as well just devastate the landscape to mine lithium instead.
 

copterzach

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Looks like it’s gonna go up again today.


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was thatguy

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Yeah keep dreaming...., when badass joe and company will come up with some other bullshit that fracking is terrible for the environment (campaign promise and Trump reversal). Just get ready to be on par with your European counterparts and pay higher prices for everything petroleum based. Oh, get used to public transportation too. 👍

Yep.
This is not a “normal” price increase.
I love higher prices. I make more money and have more work.
That is NOT the case with this.
These prices are not triggering production, less production is triggering these increases.
 

OCMerrill

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May as well just devastate the landscape to mine lithium instead.

Yep. All the secondary processes to extract it after they strip mine hundreds of miles is crazy.

In Nevada they pump out brine pools 1000's of feet down in the desert, let the water evaporate, then process it in a manner that took a shitload of scientists to figure out.

I am not sure Lithium is any kind of answer.
 

boatnam2

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Apparently some of us think the same. Makes all the property and school taxes a little easier.


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High gas prices suck and losing the XL pipeline did cost some decent jobs for short term, but its a drop in the bucket to all the jobs gained when Oil Bidness is rolling! Bidness isn't a misspell either , i think that's how they say it in Texas.
 

Christopher Lucero

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High gas prices suck and losing the XL pipeline did cost some decent jobs for short term, but its a drop in the bucket to all the jobs gained when Oil Bidness is rolling! Bidness isn't a misspell either , i think that's how they say it in Texas.
nothing better than arbitraging a risk
 

Christopher Lucero

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What’s a “fracker”?
a frickin' cracker? ;)

ok, you KNOW you set that one up...so, thanks and well done...well done.

well played.gif
applause.gif
 
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caribbean20

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Look at the futures market. We are in backwardation, not a normal condition. Futures prices point to lower crude oil prices a few months out. Don’t sweat it, supply will increase if these prices remain. Count on it.
65AEB33A-9BFB-49D8-9DE5-671D824958A6.png
 

caribbean20

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Supplies from where?
Fracking for US domestic supply. Can’t swing a pitching wedge and not hit a well anywhere around my place in CO. Not sure how many wells were shut in over the last year but you can bet they will be pumping at $60/bbl + for WTI.
 

was thatguy

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Fracking for US domestic supply. Can’t swing a pitching wedge and not hit a well anywhere around my place in CO. Not sure how many wells were shut in over the last year but you can bet they will be pumping at $60/bbl + for WTI.

CO is primarily a natural gas producing state.
Eastern CO does have some oil laterals. (I’ve drilled a bunch of HZ wells in the DJ Basin)

Gas wells are “batch fracked”.
Meaning that a pad with 12- 32 directional gas “S” wells with 8’ separation at surface but 5 acre BHL spacing are all fracked simultaneously upon completion of the pad well construction.
Shutting in a well after being in production is a bad thing.
You don’t turn a well on, go “frack” it and start pumping.
Any well in production be it gas or oil has already been “fracked”..
While many modern laterals do account for future zone fracking, the cost of bringing a well back on line can be sobering.
But the entire premise is flawed this time around.
Normally everyone I know in the industry would be heading to parachute CO, West Texas, North Dakota etc right now.
But it’s not happening.
I saw the same thing in ‘08 ...
 

caribbean20

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CO is primarily a natural gas producing state.
Eastern CO does have some oil laterals. (I’ve drilled a bunch of HZ wells in the DJ Basin)

Gas wells are “batch fracked”.
Meaning that a pad with 12- 32 directional gas “S” wells with 8’ separation at surface but 5 acre BHL spacing are all fracked simultaneously upon completion of the pad well construction.
Shutting in a well after being in production is a bad thing.
You don’t turn a well on, go “frack” it and start pumping.
Any well in production be it gas or oil has already been “fracked”..
While many modern laterals do account for future zone fracking, the cost of bringing a well back on line can be sobering.
But the entire premise is flawed this time around.
Normally everyone I know in the industry would be heading to parachute CO, West Texas, North Dakota etc right now.
But it’s not happening.
I saw the same thing in ‘08 ...
We are in the D-J Basin. Pretty sure there is plenty of liquid hydrocarbons remaining. For fracking, I thought producers injected steam or waste water to push the hydrocarbons up, which has a higher cost than normal wells. This is not economical at $40/bbl crude, but it is at $70/bbl.

I know you’ve been in the industry so probably have a good understanding of the current pulse. I have too, 7 years buying and hedging crude for our refineries. $70/bbl will attract supply and the futures market says so.

We shall see.
 

2Driver

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Dave should make a new forum folder……. High blood pressure threads.

LOL notice he hasn’t been on here.

He's enjoying Utah and the open west clearing his head of America’s depressing fückīng bull shit . Bet he picks up and moves the family to greener pastures. Utah Dave’s place.
 

was thatguy

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We are in the D-J Basin. Pretty sure there is plenty of liquid hydrocarbons remaining. For fracking, I thought producers injected steam or waste water to push the hydrocarbons up, which has a higher cost than normal wells. This is not economical at $40/bbl crude, but it is at $70/bbl.

I know you’ve been in the industry so probably have a good understanding of the current pulse. I have too, 7 years buying and hedging crude for our refineries. $70/bbl will attract supply and the futures market says so.

We shall see.

You’re describing injector wells.
Very very common as you know.
Most reservoirs today have more injectors than producers.
Fracking is the process of introducing hydraulic psi to the producing formations to fracture it...with the simultaneous introduction of a solid media (like beads) to hold the fractures open after the pressure is bled off.
As you stated, injecting H2O in from various sources (depending on fed and state regs) at lower depths and along parameter boundaries within a communicable formation does drive oil to the top and out the straw.
Fracking adds efficiency to the process and frankly makes it a viable endeavor.
This admin has stated outright that all fracking will be banned. I dont know if they will actually do this, but if so $70 a Bbl won’t come close to making any domestic production a worthwhile endeavor?

I hope I’m wrong...seriously.
Your vantage point is from production side.
Im very interested in your perspective
 

caribbean20

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You’re describing injector wells.
Very very common as you know.
Most reservoirs today have more injectors than producers.
Fracking is the process of introducing hydraulic psi to the producing formations to fracture it...with the simultaneous introduction of a solid media (like beads) to hold the fractures open after the pressure is bled off.
As you stated, injecting H2O in from various sources (depending on fed and state regs) at lower depths and along parameter boundaries within a communicable formation does drive oil to the top and out the straw.
Fracking adds efficiency to the process and frankly makes it a viable endeavor.
This admin has stated outright that all fracking will be banned. I dont know if they will actually do this, but if so $70 a Bbl won’t come close to making any domestic production a worthwhile endeavor?

I hope I’m wrong...seriously.
Your vantage point is from production side.
Im very interested in your perspective
It's a hot one here today, been doing yard work and started day drinking. Take whatever I say with a grain of salt :D

But I do know the futures are in backwardation, and the markets say lower crude prices a few months out. I think the Federal Reserve is also looking at futures markets for all commodities and is the main reason they aren't freaking out about inflation, just yet. We'll see what they say tomorrow.
 

TITTIES AND BEER

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75$ to fill up my Colorado today Fuck me it was like 32$
 

The Prisoner

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LOL notice he hasn’t been on here.

He's enjoying Utah and the open west clearing his head of America’s depressing fückīng bull shit . Bet he picks up and moves the family to greener pastures. Utah Dave’s place.
Oh yeah I know he’s gone. Finally got enough from the 18+ section. Hahaha
 

HB2Havasu

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High gas prices suck and losing the XL pipeline did cost some decent jobs for short term, but its a drop in the bucket to all the jobs gained when Oil Bidness is rolling! Bidness isn't a misspell either , i think that's how they say it in Texas.
Yep! When Biden canceled the XL Pipeline what he did was actually increase Carbon into the atmosphere not decrease it as most of the Green Zombies think. All that oil is now going to be trucked to the gulf instead of being transported cleanly thru a pipeline. Unfortunately trucking has forced a cost increase with no added value. Thanks Biden your an idiot!!!
 

Looking Glass

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75$ to fill up my Colorado today Fuck me it was like 32$


BUT!!, No More "Mean Tweets" And Obnoxious "America First" Slogans.
Yep! When Biden canceled the XL Pipeline what he did was actually increase Carbon into the atmosphere not decrease it as most of the Green Zombies think. All that oil is now going to be trucked to the gulf instead of being transported cleanly thru a pipeline. Unfortunately trucking has forced a cost increase with no added value. Thanks Biden your an idiot!!!


This was NO MISTAKE.:rolleyes:
 

was thatguy

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Yep! When Biden canceled the XL Pipeline what he did was actually increase Carbon into the atmosphere not decrease it as most of the Green Zombies think. All that oil is now going to be trucked to the gulf instead of being transported cleanly thru a pipeline. Unfortunately trucking has forced a cost increase with no added value. Thanks Biden your an idiot!!!

Don’t leave out Buffet and BNSF!
 

caribbean20

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Don’t leave out Buffet and BNSF!
Look at the rig count vs WTI in the DJ Basin. Riding the bike today and saw many wells with injection sitting idle. High price almost always attracts supply. I think $60/bbl is a key level to attract investment. I’m watching.
EFD7F9D0-A0DE-4DE4-A261-FF6BE26C3ACA.png
 

pronstar

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High price almost always attracts supply. I think $60/bbl is a key level to attract investment.

The cure for high prices, is high prices [emoji106]


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