The ability for O&G companies to deduct IDCs, write off tangible drilling costs, plus standard DD&A is extremely advantageous.
Real estate has numerous options for reducing or deferring debt (deducting expenses, depreciation, 1031 exchanges, pass-through deductions, etc.)
if you took that i was saying zero percent would be used domestically, that wasn't what was intended. I just think that TC Energy has made it pretty clear they are intent on sending a majority of the refined products to the international market after their splits with ConocoPhillips on interests in production areas, as well as stake in keystone itself. i'm much more positive about projects like Enbridge 3. Enbridge has a longer track record of willing to keep their refined products back to Canada and in the US
The lack of interest to increase oil drilling in Oklahoma is reflected from the lack of earthquakes going on in Oklahoma for the past week. Only 3 or so weak ones. During the wildly booming past, that figure would often be over 60 earthquakes. I bet the problem from earthquakes doesn't help encourage increased drilling in Oklahoma. Earlier this year, due to a 4.5 earthquake in northern Oklahoma, the state corporation commission had to make restrictions on oil companies in the area affected.
Recent Oklahoma Earthquakes: https://stillwaterweather.com/okareaearthquakes
Some good info in here, appreciate the input from you guys. How high do you think gas prices get and how many months before we maybe see some relief? Both of our vehicles call for 91 octane and it's adding up already. Really feel for people already going month to month. Inflation with current oil crises and war are going to make it much more difficult for a lot of folks.
One is a BMW which I lease. The dealership told me they can tell when it's hooked up to computer if the car has had less than 91..any insight on that? BS? Our other vehicle I'm not worried about as we own it outright and have an extended warranty and it runs fine on 87 but I don't want to mess around with the BMW since it's a lease.
Yes it’s been about as wild to watch over the last week or two as it was back in March-April 2020. Though no doubt from an industry and OK economy perspective, I much prefer these fluctuations over those lol. Who would’ve thought we’d get to watch the commodity market react on opposite ends of the spectrum to two events that seem slightly apocalyptic (obviously that’s an exaggeration but still lol) over the span of two years? We’ve seen a price swing of $165/bbl (WTI) in under 23 months and there’s a decent chance that it may end up a $200 swing when all is said and done. Never thought I’d see anything like that.
That said, it’s great that things have settled down a bit. Though we’re still at the highest WTI price since 2008, at least it’s jumped off the rocket for a minute.
Natural gas prices are high, wonder if if continues. I tried to paste a natty price chart in, but I'm having copy/ paste/embed issues.
Link instead:
https://finviz.com/futures_charts.ashx?p=d1&t=NG
Gasoline prices are now under $3.40 in spots with some even lower than that.
Looks like we could be below $3 before long.
Quick search on Gasbuddy.com reveals some area stations are already below the $3 mark:
I like hearing that. Cheapest I've actually seen is 3.41 this morning. But it's been dropping almost daily for at least a week.
You should look up the spot price for NG in Europe, it’s about 7-8X more than in the US. I don’t see it going down much, especially rolling into the winter. A lot of the US supply will be going to Europe unless something dramatically changes with the Russian war.
Both LNG and CNG come from natural gas - natural gas can be compressed (CNG) or liquified (LNG) as a way to transport the gas, such as using a ship. Bill is saying that the increase in demand (for either of those products really) will drive up the cost of natural gas here, even if it’s used domestically and not turned into LNG or CNG.
There are limits to how much LNG they can get out of the country, both as far as facilities and ships to transport it, which is a tiny fraction of domestic use. So they are not exactly tied, and this is on top of there are a range of costs to cool it to the point of being a liquid and storying it that way which does not effect CNG.
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