Negative Oil Price!

[manholt]

Will that affect the amount of Fuel Stations that are open?  Affect our way of life?

Response requested.

[huffypuff]

Refinery, pipeline, fracking stopped, all losing money.  Prices will shoot up when back to normal;.  

 

[rayin]

I wonder, it requires a lot of money to shut down a refinery, it's more expensive to re-start. In at least one area gasoline is 90¢ a gallon now, here it's $1.39. IMO it would be least costly to sell at a loss than the sum to shut-down and later restart a refinery. I don't expect this stay at home stuff to last beyond mid-May, it's too devastating to the total economy. Keep in mine gasoline demand is low now, next month it may be ???

An aside to this is the intent of the stay at home orders. It was meant to flatten the curve, which it did; however the curve is much longer now, perhaps into 2021. That IMO means a return to normal fuel pricing will happen very fast when business' reopen, fuel  pricing may  return to 2012 levels while wells are reopened and refineries that did shut-down reopen.

My opinions and $2.75  will get you a cup of coffee most anywhere.

[desertdeals69]

I bought 94 gallons of diesel today at Sams Club for $1.65/gal and 2 hours latter it dropped to $1.62 but down the street it went to $1.59/gal.

[manholt]

Love's in Three Rivers, TX.  Diesel fuel was $2.28 yesterday, gas $1.35.   What that would be with the TDS card ?

Refineries will be business as usual...too many things are petroleum based.

I have heard nothing about "fracking" stopping, to my knowledge we have been doing that since 1956....not a new thing!  They suspended operation in West Texas and caped wells in 2019, nothing to do about Coronavirus, they have to lay in more pipelines to handle the volume.

DD69, WOW...where are the empty barrels when you need them?

[elkhartjim]

Carl, Loves in Three Rivers is $1.40 with the card,

 

[dickandlois]

15 hours ago, manholt said:

Will that affect the amount of Fuel Stations that are open?  Affect our way of life?

Response requested.

Carl, I'm thinking that for now and for the next 18 months to 2 years. pumping oil from the ground at a loose is better then the cost of restarting a well. So selling it at outlets will offer a small, but necessary draw down point. The cost for now is more the tax fees charged.

Rich.

[wayne77590]

Define loosing money versus not making as much.

 

[jleamont]

6 hours ago, wayne77590 said:

Define loosing money versus not making as much.

 

Beautiful question! If I had a dollar for every time we were "losing money" A.K.A that meant we didn't hit our goals including annual growth when in fact we were NOT "losing money"

[five]

If anybody on this forum is seriously concerned about diesel prices....you have the wrong hobby.😁

[manholt]

"Big" Oil, operate at a 4% margin.  So  if the well is already on line, they'll cut back on the flow and take what they can get...If it has yet to be drilled, they'll pay the extend royalty contracts and sit back and wait.

[rayin]

On 4/22/2020 at 6:48 AM, jleamont said:

Beautiful question! If I had a dollar for every time we were "losing money" A.K.A that meant we didn't hit our goals including annual growth when in fact we were NOT "losing money"

Right' a friend was an accountant for the largest electrical industrial equipment manufacturer in the world. He said he can use their accounting system to prove they are losing money every year. Then next week he can use the same figures with a different system to prove they are making money.