My Pickup Recently Got More Affordable...

[tbellemare]

I took this last weekend. It's about a dime lower now. I thought the sign designer finally had it right...

[attachimg=1]

Tom

 

[wow]

That's because the crude is now coming from North Dakota instead of Texas!

[poke] [poke] [poke]

(Insider Alert - Tom is originally from North Dakota but moved to Texas years ago. My post is both a jab and a compliment at the same time...)

 

[Sparktrician]

Heck, we have crude right here on Capitol Hill!!!  Oh, never mind; I thought you were talking about behavior. 

[big grin]

 

[wow]

Heck, we have crude right here on Capitol Hill!!!  Oh, never mind; I thought you were talking about behavior. 

[big grin]

Good one, Willy!

 

[copcarcollector]

We are at $2.09 at local Arco stations, less at Costco. Amazing... hope the price stays this way for a loooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooong time 

 

[dltflt]

I saw $1.85 today couldn't believe it. I would have never guessed the gas prices would get this low. The worst part is I just traded my truck in for an economical car.

 

[Tyler Ernsberger]

Definitely like getting a pay raise.    Awesome considering my truck gets 10mpg.

 

[peter halle]

We have been enjoying low prices for a while.  Paid 1.82 yesterday.  I haven't gon by Costco but would bet it will be about 1.75.

Enjoy the savings while you can.  A couple of months from now the formulation will change and higher prices will be in effect.

Peter

 

[Wooden Skye]

I filled up at $1.99 the other day, and I don't even have to pump it!

 

[WarnerConstCo.]

It will stay down as long as the Saudi's keep flooding the market to control it. 

They are prepared to drive crude down to 20 bucks a barrell.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

 

[greg mann]

It will stay down as long as the Saudi's keep flooding the market to control it. 

They are prepared to drive crude down to 20 bucks a barrell.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

And then........

 

[wow]

It will stay down as long as the Saudi's keep flooding the market to control it. 

They are prepared to drive crude down to 20 bucks a barrell.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

And then........

When it falls far enough, our government will impose an import tax, rendering the Middle East's advantage moot...

 

[Throwback7r]

And to think I drive a diesel wagon. I paid 2.99$ today I was excited, none the less.

 

[WastedP]

And to think I drive a diesel wagon. I paid 2.99$ today I was excited, none the less.

I bet your wagon goes more than 30% farther per gallon of fuel, so you're still coming out ahead as long as diesel stays around 30% higher than unleaded.

 

[WarnerConstCo.]

It will stay down as long as the Saudi's keep flooding the market to control it. 

They are prepared to drive crude down to 20 bucks a barrell.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

And then........

When it falls far enough, our government will impose an import tax, rendering the Middle East's advantage moot...

They already want to hike the taxes on it to make up the difference.

 

[JBird]

It will stay down as long as the Saudi's keep flooding the market to control it.

My understanding is that OPEC production has been stable. It is the USA (collectively) that has been flooding the market.

They are prepared to drive crude down to 20 bucks a barrell.

If they wanted to drive the price down then they could raise production. They would remain profitable at $20 a barrel. But they surely do not want to see this happen as their governments would have to run even more massive deficits. They may have some geopolitical goals in their decision not to CUT production(to hurt Russia and/or Iran). But it doesn't need to go that low to achieve those goals.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

I don't think oil is the type of thing that is sold at a loss. Not on a cash flow basis. If it costs more to recover than they can sell it for then they will leave it in the ground until the situation changes (the oil is not going anywhere). They may very well go bankrupt in the interim. But then their assets will be sold to someone else who can wait it out. So on a long term basis OPEC would be on a fools errand to try and drive US producers out of the market. The fracking genie has been let out of the bottle. US energy independence is visible on the horizon.

 

[Stephen B]

[size=14pt]
Due to shale and similar oil extraction processes becoming less expensive than first predicted the US has once again become self sufficient.

Consequently to retain their production levels, Middle Eastern OPEC countries have lowered price to attract increased exports to other countries.

However at the same time world market demand has decreased due to economic pressures on household budgets, more efficient engine technologies and rise of non fossil fuel energy technologies.

One result is some Russian fields cannot produce profitably at this lower barrel price. Rupel devaluation excellerates.

In Australia where our fuel prices are based on the Singapore price, our bowser price has lowered from around A$1.60 three weeks ago down to around A$1.10, and eastern mainland state capital city prices are expected to be under A$1.00 next week.

[size=18pt]Wow! I hear WOW! 
[size=24pt]But I am talking price per litre!!  [smile]

[size=10pt] US1 gallon is 3.75 litres. A$ = approx 80C US.

 

[Staniam]

Just filled my tank for $2.59 a gallon in central California. I was up in San Francisco Monday and Tuesday and gas was $2.70-$2.90. Hometown of Pismo beach is around the same price.

I'd definitely love to pay $1 per gallon. I'd be able to buy plenty of Rubin 2 sand paper with the savings.

 

[Tinker]

I remember my dad on Saturday mornings going to gas station and getting "a dollars worth".  That would last him all week long for his commute about twenty miles per day round trip to RR station and other miscellaneous driving around town.  When i started driving it was around 20+/- cents per gallon. Of course, when I was around 20 yrs old (19 years ago ???  :) the wheels of my car seldom touched the ground, so i should have gotten lots of MPG's.  Funny, as the price went up and i discovered the neat little trick of removing the lead plate out of the right sole of every new pair of shoes, I found the price of gas, even tho already increasing in price per gallon, to be more affordable as my wheels came in contact with the road a lot more frequently.
Tinker

 

[WarnerConstCo.]

It will stay down as long as the Saudi's keep flooding the market to control it.

My understanding is that OPEC production has been stable. It is the USA (collectively) that has been flooding the market.

They are prepared to drive crude down to 20 bucks a barrell.

If they wanted to drive the price down then they could raise production. They would remain profitable at $20 a barrel. But they surely do not want to see this happen as their governments would have to run even more massive deficits. They may have some geopolitical goals in their decision not to CUT production(to hurt Russia and/or Iran). But it doesn't need to go that low to achieve those goals.

It will kill off any other producer without the bank roll to sustain a fairly large loss per barrell.

I don't think oil is the type of thing that is sold at a loss. Not on a cash flow basis. If it costs more to recover than they can sell it for then they will leave it in the ground until the situation changes (the oil is not going anywhere). They may very well go bankrupt in the interim. But then their assets will be sold to someone else who can wait it out. So on a long term basis OPEC would be on a fools errand to try and drive US producers out of the market. The fracking genie has been let out of the bottle. US energy independence is visible on the horizon.

Do some research on your own.  The Saudi's don't care at this point and time.  They have more resources and reserves then anyone else in the game.  They want to control the market share, they are prepared financially and production wise to drive it to the bottom and eliminate the competition. 

Yes, others are operating at a loss right now or have begun shutting down.