Still Burning Oil
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Predicting what oil will do between now and 2020 is absurd. I've been watching Crude prices for over 20 years and it just doesn't work that way. Something could happen next week and make it skyrocket or make it plummet. That's like predicting what the stock market will do in the 4-5 years. Global demand is down and the world economies are not as bright as some would like us to think.
It's not the Saudi's that bringing the price down right now, it's Iran.
http://www.bloomberg.com/news/articles/2015-11-05/iranian-oil-goes-back-on-the-market
It's not the Saudi's that bringing the price down right now, it's Iran.
http://www.bloomberg.com/news/articles/2015-11-05/iranian-oil-goes-back-on-the-market
It's not any one country.
All the oil reservoirs are full and everyone is still pumping like mad for dollars.
If it's not dollars to run a government it's dollars to pay back loans made to pump it out, in some cases even at a theoretical loss.
Iran's increased production isn't affecting the glut now but it will when and if more of it actually starts coming out of the ground.
Just because they've had sanctions imposed on them doesn't mean they haven't been inventive is moving some of it. Sanctions are no different than speed limits. Rules that are being broken all the time.
All the oil reservoirs are full and everyone is still pumping like mad for dollars.
If it's not dollars to run a government it's dollars to pay back loans made to pump it out, in some cases even at a theoretical loss.
Iran's increased production isn't affecting the glut now but it will when and if more of it actually starts coming out of the ground.
Just because they've had sanctions imposed on them doesn't mean they haven't been inventive is moving some of it. Sanctions are no different than speed limits. Rules that are being broken all the time.
Husky
Feeling the Heat
I'm doing just the opposite, Have the NG furnace set at 67 and run the pellet stove just in the evening to get living room up to 70. Looks like I will have a lot of pellets left over for next year.
alternativeheat
Minister of Fire
Of course, I have no pellets, didn't buy them. Not at these oil prices vs pellet prices, plus a bum knee ( just had surgery last Thurs). I might buy a few bags around Christmas so we can make a glow and have a little stove heat for ambiance. But oil will be the main heat this winter. Even if I had pellets in stock I had planned on oil as the main heat this winter anyway. That means set the heat at what I like and run the stove in Stove Temp mode to help out in the real cold weather only. Vs cranking the stove and setting the heat to backup the stove.
mass_burner
Minister of Fire
alternativeheat
Minister of Fire
If someone was real ingenious they could figure out how to turn a top feeder pellet stove into an oil burning stove. Now that would make sense ! I don't think my bottom feeder is eligible though. But I did see where a guy took a P61 like mine and turned it into a coal stoker burning rice coal, HMMM !
TimfromMA
Minister of Fire
mass_burner
Minister of Fire
newbieinCT
Feeling the Heat
I sold my pellet boiler to a guy in central VT. Oil prices up there are still making the 5 tons he bought in August a better deal than oil.
Transportation costs are still high in places.
Fracking wells don't produce as long as normal wells, the price will come up again slowly as fracked wells drop off and market prices keep new well costs too high to get a return. Plenty of used drilling equipment going to the scraper right now.
Transportation costs are still high in places.
Fracking wells don't produce as long as normal wells, the price will come up again slowly as fracked wells drop off and market prices keep new well costs too high to get a return. Plenty of used drilling equipment going to the scraper right now.
Peterfield
Minister of Fire
Fracking has pretty much stopped and is not the reason why oil prices dropped. Saudis are determined to capture significant market share and are pumping like crazy, ignoring request from OPEC to reduce production. When Iranian oil hits the market, they'll be more downward pressure on prices. The weakening Chinese a economy also had a significant effect since they are not buying the quantities they did last year.
Peterfield
Minister of Fire
Not everywhere but North Dakota fields are sitting down because the price is too low to keep operations economically viable. Plenty of articles on ND issues.
Eagle Ford in Texas and Bakken in North Dakota production is declining but the output of Permian alone is increasing almost equal to both of their declines combined. Gonna be interesting to continue to watch.
What is gonna happen is the majors buying into the future for chump change picking up the guys that are going broke. When I was in the business we called it drilling for oil on Wall Street.
What is gonna happen is the majors buying into the future for chump change picking up the guys that are going broke. When I was in the business we called it drilling for oil on Wall Street.
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