Oil prices about to drop some more?

[Peterfield]

This is the interesting relationship between alternative fuels and carbon fuels. You can't be all in on one side because you then don't have any choice and no purchasing power. With alternative fuel, you can hedge your fuels and spread your risks. I see a lot of people getting rid of their pellet stove in the coming months only to regret it later on. Oil prices will rebound because producers can't keep extracting at these lows prices. They will go out of business. Once they are out prices will rebound. How long will this take? Don't know. But investment money for all these oil projects must be drying up.

The "oil" company where if get most of my information has switched their exploration to natural gas and has suspended any oil surveys because they have recognized that market forces are causing a collapse of price support and it doesn't make economic sense to look for new fields. I'm sure oil at some point way down the road will rise again but also keep in mind there are plenty of folks gouging in the alternative fuels market also. Lot of green to be made selling green energy.

 

[vinny11950]

gouging in the alternative fuels market also

I don't know if it is gouging getting a better price for your product. If pellets can find a better price floor in Europe then they will be shipped there. I want pellet producers to stay in business to provide a future supply of pellets I can burn. I want oil too. And gas and wind and solar. It is no coincidence carbon fuel prices have dropped as efficiency and fuel diversity has gone up. We are very lucky to have so many choices of fuels, it is a benefit of being in an advanced economy. Right now I have two options to heat the house - electric or pellets. I can plunk down some cash to get oil heat but I am not convinced it is the best option. I am waiting for the gas company to put service in my neighborhood. But who knows when that will happen. So I will stick with pellets for now.

 

[mass_burner]

Yes, diversity! I'm still trying to determine if 10 years is enough to break even on solar.

 

[Peterfield]

If pellets can find a better price floor in Europe then they will be shipped there. I want pellet producers to stay in business to provide a future supply of pellets I can burn. I want oil too.

Pellets manufactured for the North American home market do not bump heads with the type of wood pellets used in Europe. Different wood, different manufacturing process. Most tree species in the northern United States and Canada would not be used as industrial pellets. I was surprised to hear this but was told by a pellet mill owner who seemed to know what he was talking about. Pellets going to Europe is, however, used as one of the excuses why home pellet prices here are high.

 

[vinny11950]

Pellets manufactured for the North American home market do not bump heads with the type of wood pellets used in Europe. Different wood, different manufacturing process. Most tree specifies in the northern United States and Canada would not be used as industrial pellets. I was surprised to hear this but was told by a pellet mill owner who seemed to know what he was talking about. Pellets going to Europe is, however, used as one of the excuses why home pellet prices here are high.

Interesting.

 

[Peterfield]

Interesting.

Whenever I tried to scam my Dad for something I either did or failed to do that he disagreed with, he would see right through it and say, "that's an excuse, not a reason." I could never get around that statement. I did use it on my kids from time to time, with similar effect.

 

[billb3]

Interesting.

HUGE numbers of north american trees are being turned into pellets from the Gulf Coast toCanada to feed dozens of converted coal power plants in Europe, the biggest being DRAX in the U.K. (broken link removed to http://www.pellet.org/wpac-news/drax-fires-up-biomass-power)
Not exactly green, nor sustainable and it will be interesting how much American forests will be gone in ten years at this rate, privately owned or not.
(broken link removed to http://ecowatch.com/2013/05/28/our-forests-arent-fuel-new-campaign-against-burning-american-forests-for-electricity/)

 

[Peterfield]

HUGE numbers of north american trees are being turned into pellets from the Gulf Coast toCanada to feed dozens of converted coal power plants in Europe, the biggest being DRAX in the U.K. (broken link removed to http://www.pellet.org/wpac-news/drax-fires-up-biomass-power)
Not exactly green, nor sustainable and it will be interesting how much American forests will be gone in ten years at this rate, privately owned or not.
(broken link removed to http://ecowatch.com/2013/05/28/our-forests-arent-fuel-new-campaign-against-burning-american-forests-for-electricity/)

Well, in New England 1.7 trees are planted for every tree harvested for pellets. I found a graph in that article interesting in that the price per ton has dropped from $175 to $150 since March 2015. Didn't see that drop at the stores.

 

[alternativeheat]

Well, in New England 1.7 trees are planted for every tree harvested for pellets. I found a graph in that article interesting in that the price per ton has dropped from $175 to $150 since March 2015. Didn't see that drop at the stores.

The $175 figure would have been nice over the last year, never mind the $150. Though now with lowering oil prices( running at $1.42 gal here, down from $1.49 a week ago) $150 a ton is still too high. BBS still at $259 a ton for pellets. They appear to be creating their own loss at this rate, junk it and write it off mentality.

 

[mass_burner]

Just filled up at 1.52., 232.00. That will probably last me till November. I smell brontosaurus, with a whiff of stegosaurus.