Oil prices

[ou48A]

What a ridiculous statement. How can we invite lower prices if it's not economical to drill and produce at lower prices? It's not just those invested in it but those that work in the oil industry at every level and all of the industries that support it. If this price decrease last for a prolonged amount of time. It will affect everyone in OKC and the state in some way or another. Sorry you don't like paying $3 a gallon for gas, but saying "let it keep falling" is ridiculous if you enjoy what's happening in OKC right now. We may have diversified somewhat but make no mistake, if there is a true "bust" it will profoundly affect all the development we discuss here.

Well, we are not all the way there yet but with a slowing world economy there is very little on the horizon for the foreseeable future to make me believe oil prices will recover to $ 75 and above for the next year or 2… With drilling cost falling $60 would probably keep most heads above water but I don't expect very much energy rehiring or expansions.

I’m more optimistic about NG prices going up and helping our state but the current White House global warming politics put this at very serious risk to our state in the future... They want to do to oil & NG what they did to coal!

[jccouger]

Well, we are not all the way there yet but with a slowing world economy there is very little on the horizon for the foreseeable future to make me believe oil prices will recover to $ 75 and above for the next year or 2… With drilling cost falling $60 would probably keep most heads above water but I don't expect very much energy rehiring or expansions.

I’m more optimistic about NG prices going up and helping our state but the current White House global warming politics put this at very serious risk to our state in the future... They want to do to oil & NG what they did to coal!

That is good thing, coal & oil is bad for our planet. Nothing is stopping people in Oklahoma from taking initiative to focus on alternative energies & capitalizing off of them. There is no reason our state can't be the leader of the revolution.

[Jersey Boss]

They want to do to oil & NG what they did to coal!

Obama Didn't Kill Coal, the Market Did - Bloomberg View

Critics of the Environmental Protection Agency’s new Clean Power Plan are describing it in apocalyptic terms. But much of what they believe about the plan -- that it will destroy the coal industry, kill jobs and raise costs for consumers -- is wrong.
The overblown political rhetoric about the plan tends to obscure the market reality that the coal industry has been in steady decline for a decade, partly as a result of the natural gas boom, but mostly because consumers are demanding cleaner air and action on climate change. Communities across the U.S. have led the way in persuading utilities to close dirty old coal plants and transition to cleaner forms of energy
The primary reason for the public revolt against coal is simple: It causes death, disease and debilitating respiratory problems. A decade ago, coal pollution was killing 13,000 people a year. Today, the number is down to 7,500, which means that more than 5,000 Americans are living longer, healthier lives each year thanks to cleaner power.

At the same time, jobs in the energy industry have multiplied, led by natural gas and renewable sources such as solar and wind.Today, there are nearly two people working in the solar industry for each person employed by the coal industry.

Coal is nasty and hurts our quality of life.

[C_M_25]

That is good thing, coal & oil is bad for our planet. Nothing is stopping people in Oklahoma from taking initiative to focus on alternative energies & capitalizing off of them. There is no reason our state can't be the leader of the revolution.

Coal is much much worse for the environment than oil and gas. We have burned through most of the high quality "clean" coal. What remains is coal high in sulphates which when released to the atmosphere causes acid rain among other things. Also, there mines are expansive regardless if they are strip mines or below ground.

Natural gas is one of the best energy sources available to us. We have a tremendous amount which is fairly accessible, and the better reservoirs require fewer resources to get the gas. It is relatively clean burning, and you do not get waste that you cannot get rid of like radiation or mine tailings. The fact of the matter is renewable energy lacks an economy of scale. It simply cannot provide the energy we use. Keep in mind too, that those technologies rely on rare earth metals. Have you seen one of those mines? Nasty...

[mugofbeer]

Weaning ourselves off oil will take a very long time. I'm no ra ing environmentalist but in Denver, i can recycle most things. I also went from my < 15mpg Jeep to a 43mpg hybrid Ford. As more and more people do this sort of thing and new technologies come out, it will bappen. I dont see a total elimination in most any of our lifetimes. Jets and industrial uses will keep at least some demand out there.

[rtz]

Why were gas prices $1.99 this week, then the very next day, they were $2.25, then $2.35 the next?

[Achilleslastand]

Why were gas prices $1.99 this week, then the very next day, they were $2.25, then $2.35 the next?

Refinery issues near Chicago driving up gas prices in Louisville, experts say
Refinery issues near Chicago driving up gas prices in Louisville - WDRB 41 Louisville News

LOUISVILLE, Ky. (WDRB) -- Depending on where you are, you may be suffering some sticker shock over gas prices that shot up about $.50 a gallon Wednesday.

The huge jump comes after a shutdown at a refinery near Chicago. Even though none of Louisville's gasoline comes from there, the issue is driving up the prices wholesalers are charging retailers throughout this part of the country.

"If you're a refiner who hasn't had an issue at your refinery, you are a beneficiary, and you're getting in some cases, three, four or five times the margin that you would ordinarily get," Tom Kloza of Oil Price Information Service said. "But, that's capitalism, it's not collusion. And, unfortunately, for a lot of people who tend to demonize oil companies, that is the way the market works."

In fact, Kloza says the price Marathon charges retailers here has actually shot up by more than the $.50 a gallon increase you're seeing at the pump.

He says the good news is the problem at the refinery in Whiting, Indiana, is expected to be resolved within the next couple of weeks. He says the better news is after that, prices should drop to near $2 a gallon before the end of the year, because of falling oil prices

[Just the facts]

The sooner I don't care what a gallon of gasoline costs the happier I will be - which should be a few months from now.

[ljbab728]

The sooner I don't care what a gallon of gasoline costs the happier I will be - which should be a few months from now.

Kerry, does that mean you won't ever look at this thread or comment about oil prices again?

[BBatesokc]

Weaning ourselves off oil will take a very long time. I'm no ra ing environmentalist but in Denver, i can recycle most things. I also went from my < 15mpg Jeep to a 43mpg hybrid Ford. As more and more people do this sort of thing and new technologies come out, it will bappen. I dont see a total elimination in most any of our lifetimes. Jets and industrial uses will keep at least some demand out there.

Bought my Prius two years ago just because it was priced insanely cheap. Figured I'd drive it 6 months to a year and get rid of it. At the time I had been driving larger gas guzzlers like Jeeps, F150's Infinity SUV, etc. But, here I am two years later and I'm looking at getting another - just newer - prius because we like it so much as our everyday driver. Funny when you leave the USA that most other countries do not have a love affair with oversized vehicles that get terrible mileage.

[mimino]

Bought my Prius two years ago just because it was priced insanely cheap. Figured I'd drive it 6 months to a year and get rid of it. At the time I had been driving larger gas guzzlers like Jeeps, F150's Infinity SUV, etc. But, here I am two years later and I'm looking at getting another - just newer - prius because we like it so much as our everyday driver. Funny when you leave the USA that most other countries do not have a love affair with oversized vehicles that get terrible mileage.

Go big or go home! (is our Country's motto) Truck sales are thru the roof these days. If it ain't big, I'm not buying.

[bchris02]

Go big or go home! (is our Country's motto) Truck sales are thru the roof these days. If it ain't big, I'm not buying.

How quickly people forget $5 gas. Gas prices don't have to drop for very long before large truck and SUV sales shoot through the roof, as if people think prices will be low forever.

[ctchandler]

How quickly people forget $5 gas. Gas prices don't have to drop for very long before large truck and SUV sales shoot through the roof, as if people think prices will be low forever.

Bchris,
I agree with what you had to say except for $5 gas. I have never seen that price. I don't think I have ever seen $4 gas.
C. T.

[rtz]

Pickup a 'cheap' Tesla if you're serious about not wanting to purchase fuel anymore:

Pre-Owned Model S | Tesla Motors

Or if you don't need as much range; a used Leaf or Mitsubishi MiEV are about $12k. They could build ~500 mile range vehicles now; but the recharge time would be more(at the moment). Electric for around town or commute; old gas car or rental for out of state trips.

[zookeeper]

A guy down the street owns a SMART car. He was in a wreck on Western that I would have thought would have killed him. He showed us the pictures and were stunned that the car protected him like it did. He bought another! He was telling us the safety specs and I was surprised. He likes his Smart car, it's one of their electric models.

[MagzOK]

Why were gas prices $1.99 this week, then the very next day, they were $2.25, then $2.35 the next?

Gasoline is now market driven. Back in the day this is how it worked, let's just choose Texaco as an example (nothing wrong with Texaco my dad worked in the Land department for over 30 years there): Most stations are independently owned, so the station owner would have contracts with Texaco for the gas/diesel deliveries. They would negotiate with the supplier (a marketing supplier from Texaco) for a price per gallon (p.p.g.) of gas. Once agreed, the Texaco supplier would deliver the gas to the station and the independent station owner would base his advertised p.p.g. of gas on his sign to make profit or whatever. That price would not change as long as the original delivery is still in his underground tank, thus the price on the sign wouldn't change for weeks sometimes a month or more, or even months depending on the contract -- simply because he's already paid a certain price for it. Then when come time to renegotiate the sign would reflect the "new" p.p.g. whether it be more or last than the last time, but it would hardly jump like they do today. Nowadays stations base their current p.p.g. on the open market. There are still negotiations regarding the cost of delivery so the station owner/company still pays a certain p.p.g. for the gas in the underground tank, yet will charge more or less depending on market. My dad, now in his 70s, will b!tch when we pull up to a gas station when the price has gone up $.50 overnight because the station paid XX amount of dollars for the gas in it's storage, however is now charging $.50 more than he did yesterday for it. He calls them thieves that rob everyone based on what folks "think" the market is going to do. He thinks it's highway robbery, which it is.

[Rover]

Supply and demand setting pricing IS capitalism, not robbery. The price you choose to sell at is not connected directly by what something costs. Unless there are contracts limiting retail pricing then the market is supposed to work freely.

[ctchandler]

Supply and demand obviously is the driving force, but at the pump, under normal circumstances, the ppg varies based upon the price the local stations have to pay to fill their underground tanks and if the price goes down, you actually fill your car at a ppg less than what the station paid for the gasoline. And of course, when the price goes up, you fill your car at a ppg that is more than what the station paid for the gasoline. It's all a wash. I am open for correction, but I believe it's been this way for a long time. And I believe a lot of products are priced the same way, not just fuel. It's an inventory theory, or something like that. Too far over my head, but I do understand the practice.
C. T.

[BBatesokc]

A guy down the street owns a SMART car. He was in a wreck on Western that I would have thought would have killed him. He showed us the pictures and were stunned that the car protected him like it did. He bought another! He was telling us the safety specs and I was surprised. He likes his Smart car, it's one of their electric models.

Couldn't do the Smart Car.... too tiny, too expensive (for what you get) and the consumer reviews are horrendous. Consistently rated one of the worst cars to own. If it was rated better and was cheaper it'd be a great in the city get around car.

[BBatesokc]

Bchris,
I agree with what you had to say except for $5 gas. I have never seen that price. I don't think I have ever seen $4 gas.
C. T.

Never seen five in our state, but a couple of different years I saw $4 and a wee bit more at the pricer pumps.

[Pete]

Gas has been well over $5 here in California and is currently still around $4.

[bchris02]

Bchris,
I agree with what you had to say except for $5 gas. I have never seen that price. I don't think I have ever seen $4 gas.
C. T.

Yeah I wasn't living in OKC during that era. It probably never quite got up to $5 here. In North Carolina it was in the high $4s.

[windowphobe]

He was in a wreck on Western that I would have thought would have killed him. He showed us the pictures and were stunned that the car protected him like it did.

There's a serious safety cage in there. Makes the car a little bit top-heavy, but it gives you a fighting chance against all the bigger vehicles -- which is pretty much all of them.

[mimino]

What a day on the market. We might see 30s very soon...

[ljbab728]

What a day on the market. We might see 30s very soon...

Not everyone is in agreement with that.

http://www.oklahoman.com/article/544...s%20hit%20hard

Higher-than-expected oil inventories and new price projections spooked energy investors.
Analyst Thomas Pugh of Capital Economics said the main reason for the increase in inventories was refinery outages for maintenance and other issues. He said oil production continues to drop and gasoline stocks fell more than expected, which shows demand is high.

"The bigger picture is one of strong demand for gasoline and falling oil output, which should give some support to prices over the rest of the year," Pugh said. He expects oil to finish the year at $50 per barrel.

The EIA also released new price projections for its short-term energy outlook. The agency said it expected West Texas Intermediate crude to average $49 per barrel this year and $54 per barrel in 2016.