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Fracking Could Rob OPEC of Pricing Power

A

Anonymous

Guest
Fracking Could Rob OPEC of Pricing Power
Aaron Flint posted on December 10, 2012 12:27 :: 61 Views


Bloomberg News is reporting on a new national intelligence report which says fracking in the Bakken oil fields of Montana, North Dakota, and elsewhere could be the key to robbing OPEC of its gasoline pricing power.

here's an excerpt:

The success of American drillers in coaxing fossil fuels from shale rock has the potential to boost production so much that it may deny OPEC the power to set global oil and gasoline prices, an intelligence advisory panel concluded.

Rising domestic production from hydraulic fracturing is expanding U.S. supplies, which would shift the balance of power in global energy markets, according to the report by the National Intelligence Council released today. The council, an adviser to the director of national intelligence, publishes a report every four years to aid policymakers’ long-term planning.

I heard on the radio today that gas in some areas of the country is under $3-- and expected to be below that number nationwide by Christmas...
 

TexasBred

Well-known member
Oldtimer said:
Fracking Could Rob OPEC of Pricing Power
Aaron Flint posted on December 10, 2012 12:27 :: 61 Views


Bloomberg News is reporting on a new national intelligence report which says fracking in the Bakken oil fields of Montana, North Dakota, and elsewhere could be the key to robbing OPEC of its gasoline pricing power.

here's an excerpt:

The success of American drillers in coaxing fossil fuels from shale rock has the potential to boost production so much that it may deny OPEC the power to set global oil and gasoline prices, an intelligence advisory panel concluded.

Rising domestic production from hydraulic fracturing is expanding U.S. supplies, which would shift the balance of power in global energy markets, according to the report by the National Intelligence Council released today. The council, an adviser to the director of national intelligence, publishes a report every four years to aid policymakers’ long-term planning.

I heard on the radio today that gas in some areas of the country is under $3-- and expected to be below that number nationwide by Christmas...

He!! it has been under $3 for two years. Where you been old man?? Drilling for gas down here is at a standstill. Fracing wells is nothing new. Just something new for the tree huggers to bytch about.
 

hypocritexposer

Well-known member
I wonder if theses "limits" the administration is looking at, would increase, or decrease, the amount of "fracking"? I would assume that the "potential production" that the National Intelligence Council mentions, is before any "limits" are placed on the process and the "loopholes" are closed.


from the actual article:

President Barack Obama is promoting development of natural gas and crude oil as an economic resource, and formed a task force this year to avoid federal rules that would slow fracking. The administration is considering limits on the process as environmentalists say injecting water, sand and chemicals underground to free trapped gas and oil poses a threat to clean water supplies.

The intelligence analysis says concern about the environmental impacts is the “greatest obstacle” to fracking.

‘Close Loopholes’

“A tighter regulatory environment -- which is beginning to happen in some U.S. states -- could also close loopholes and reassure public safety,” the report states.

http://www.bloomberg.com/news/2012-12-10/fracking-seen-robbing-opec-of-gasoline-pricing-power.html?cmpid=msnmoney
 

littlejoe

Well-known member
I got a canadian industry magazine that's projecting the u.s. could be energy independent in about 15 yrs. The focus of article was canada perhaps losing their export partner.

Also in there was an ad for a giant dozer--kinda like a quad 9 but way bigger---__a quad9 is 2 cats with one operator----anyway, this dozer runs on 'micronized' coal, touts cutting fuel bill to 10% and meets enviro standards---
 
A

Anonymous

Guest
TexasBred said:
Oldtimer said:
Fracking Could Rob OPEC of Pricing Power
Aaron Flint posted on December 10, 2012 12:27 :: 61 Views


Bloomberg News is reporting on a new national intelligence report which says fracking in the Bakken oil fields of Montana, North Dakota, and elsewhere could be the key to robbing OPEC of its gasoline pricing power.

here's an excerpt:

The success of American drillers in coaxing fossil fuels from shale rock has the potential to boost production so much that it may deny OPEC the power to set global oil and gasoline prices, an intelligence advisory panel concluded.

Rising domestic production from hydraulic fracturing is expanding U.S. supplies, which would shift the balance of power in global energy markets, according to the report by the National Intelligence Council released today. The council, an adviser to the director of national intelligence, publishes a report every four years to aid policymakers’ long-term planning.

I heard on the radio today that gas in some areas of the country is under $3-- and expected to be below that number nationwide by Christmas...

He!! it has been under $3 for two years. Where you been old man?? Drilling for gas down here is at a standstill. Fracing wells is nothing new. Just something new for the tree huggers to bytch about.

U.S. gas prices 'crash'


By CNN staff

updated 9:15 AM EST, Mon December 10, 2012


Long Island, New York, had the highest average in the latest survey
Memphis, Tennessee, had the lowest average

(CNN) -- Gas prices have plummeted 46 cents a gallon over the past two months, according to a survey released Sunday.

"This has been a true price crash," said Trilby Lundberg, publisher of the Lundberg Survey.

The average price of a gallon of regular gasoline is $3.38, down nearly a dime over the past three weeks, Lundberg said.

Well my Daddy used to say everything was always better or bigger in Texas-- including the BS the resident flung around.... :wink: :lol:
But I suppose being closer to the big refineries should give you cheaper gas....

Maybe they prefer drilling where they can actually find something....
 

hypocritexposer

Well-known member
OT, when you are having a discussion about the price of "gas" make sure you are discussing "gas" and not "gasoline"



:roll:

Texasbred mentioned drilling for "gas", not the price of "gasoline".
 

Mike

Well-known member
Oldtimer said:
TexasBred said:
Oldtimer said:
I heard on the radio today that gas in some areas of the country is under $3-- and expected to be below that number nationwide by Christmas...

He!! it has been under $3 for two years. Where you been old man?? Drilling for gas down here is at a standstill. Fracing wells is nothing new. Just something new for the tree huggers to bytch about.

U.S. gas prices 'crash'


By CNN staff

updated 9:15 AM EST, Mon December 10, 2012


Long Island, New York, had the highest average in the latest survey
Memphis, Tennessee, had the lowest average

(CNN) -- Gas prices have plummeted 46 cents a gallon over the past two months, according to a survey released Sunday.

"This has been a true price crash," said Trilby Lundberg, publisher of the Lundberg Survey.

The average price of a gallon of regular gasoline is $3.38, down nearly a dime over the past three weeks, Lundberg said.

Well my Daddy used to say everything was always better or bigger in Texas-- including the BS the resident flung around.... :wink: :lol:
But I suppose being closer to the big refineries should give you cheaper gas....

Maybe they prefer drilling where they can actually find something....

Natural Gas prices you idiot!!!!!!!!!!!!!!!!!!!

http://www.infomine.com/investment/metal-prices/natural-gas/1-year/
 
A

Anonymous

Guest
hypocritexposer said:
OT, when you are having a discussion about the price of "gas" make sure you are discussing "gas" and not "gasoline"



:roll:

Texasbred mentioned drilling for "gas", not the price of "gasoline".


Bloomberg News is reporting on a new national intelligence report which says fracking in the Bakken oil fields of Montana, North Dakota, and elsewhere could be the key to robbing OPEC of its gasoline pricing power.

here's an excerpt:

The success of American drillers in coaxing fossil fuels from shale rock has the potential to boost production so much that it may deny OPEC the power to set global oil and gasoline prices, an intelligence advisory panel concluded.

Yep-- figured that-and that all he was doing was his normal whining and beeching--- but the article was talking about "gasoline" type gas...

I guess maybe that's what Texans call it-- but we go to the service station to "gas up"-- not "gasoline up"... :roll:
 

Steve

Well-known member
littlejoe said:
I got a canadian industry magazine that's projecting the u.s. could be energy independent in about 15 yrs. The focus of article was canada perhaps losing their export partner.

Also in there was an ad for a giant dozer--kinda like a quad 9 but way bigger---__a quad9 is 2 cats with one operator----anyway, this dozer runs on 'micronized' coal, touts cutting fuel bill to 10% and meets enviro standards---

I read a bit on micronized coal after you posted it.. interesting.. run coal in a diesel... and it is cleaner then diesel..

you can bet like fracking the greenies will have a hissy fit.. even if it is cleaner..
 

loomixguy

Well-known member
Ford is now offering commercial vehicles with the option of a factory installed setup on propane or natural gas. The Schwan's guys' trucks are all propane around here and the drivers all claim they don't lack for power.

With diesel at around $4 still, the propane things really intrigues me, as I could order a new 550 all set up and ready to go. $4 diesel and 10-12 mpg on a daily average run of 150 miles cuts deep into the profits.
 

hypocritexposer

Well-known member
Oldtimer said:
hypocritexposer said:
OT, when you are having a discussion about the price of "gas" make sure you are discussing "gas" and not "gasoline"



:roll:

Texasbred mentioned drilling for "gas", not the price of "gasoline".


Bloomberg News is reporting on a new national intelligence report which says fracking in the Bakken oil fields of Montana, North Dakota, and elsewhere could be the key to robbing OPEC of its gasoline pricing power.

here's an excerpt:

The success of American drillers in coaxing fossil fuels from shale rock has the potential to boost production so much that it may deny OPEC the power to set global oil and gasoline prices, an intelligence advisory panel concluded.

Yep-- figured that-and that all he was doing was his normal whining and beeching--- but the article was talking about "gasoline" type gas...

I guess maybe that's what Texans call it-- but we go to the service station to "gas up"-- not "gasoline up"... :roll:


How much gasoline does OPEC sell? You are not saying that the price US oil companies pay for OPEC oil, determines the price of gasoline, are you?

Previousl;y, you have blamed the US oil companies for "gouging and greed, when it comes to gasoline pricing?

Oh and that secret meeting Bush had, was also to blame.

:lol:
 

TexasBred

Well-known member
Oldtimer said:
TexasBred said:
Oldtimer said:
I heard on the radio today that gas in some areas of the country is under $3-- and expected to be below that number nationwide by Christmas...

He!! it has been under $3 for two years. Where you been old man?? Drilling for gas down here is at a standstill. Fracing wells is nothing new. Just something new for the tree huggers to bytch about.

U.S. gas prices 'crash'


By CNN staff

updated 9:15 AM EST, Mon December 10, 2012


Long Island, New York, had the highest average in the latest survey
Memphis, Tennessee, had the lowest average

(CNN) -- Gas prices have plummeted 46 cents a gallon over the past two months, according to a survey released Sunday.

"This has been a true price crash," said Trilby Lundberg, publisher of the Lundberg Survey.

The average price of a gallon of regular gasoline is $3.38, down nearly a dime over the past three weeks, Lundberg said.

Well my Daddy used to say everything was always better or bigger in Texas-- including the BS the resident flung around.... :wink: :lol:
But I suppose being closer to the big refineries should give you cheaper gas....

Maybe they prefer drilling where they can actually find something....

My bad OT...I was referring to Natural Gas which is what concerns me.
 

Whitewing

Well-known member
For what's it's worth TB, I thought the same thing....."gas is under $3 in some areas of the country".

Gas is gas....$x.xx per 1000 cubic feet.

Gasoline is gasoline.

One's a gas, one's a liquid, both are fluids. But then, that's just me.
 

TSR

Well-known member
For what its worth the API (American Petroleum Institute) president, as I recall, was on C-Span recently saying that the US was exporting diesel fuel because we had an excess of diesel fuel. If we have an excess why hasn't the price of diesel gone down after all he didn't say we were exporting gasoline, of which evidently we don't have an excess and the price has gone down? I guess its that complicated world market thing. :wink:
 

Faster horses

Well-known member
TSR said:
For what its worth the API (American Petroleum Institute) president, as I recall, was on C-Span recently saying that the US was exporting diesel fuel because we had an excess of diesel fuel. If we have an excess why hasn't the price of diesel gone down after all he didn't say we were exporting gasoline, of which evidently we don't have an excess and the price has gone down? I guess its that complicated world market thing. :wink:

Remember.......way back when.......diesel was cheaper than gasoline.......???
So what changed that???????? :x
 

Steve

Well-known member
TSR said:
If we have an excess why hasn't the price of diesel gone down after all he didn't say we were exporting gasoline, of which evidently we don't have an excess and the price has gone down?

I would say the cost is based more on a global value then a local demand these days.

over the years businesses especially large corporations, have realized that they can charge more locally as long as they have a secondary market..

add in the difficulty in moving it to US markets due to already full pipelines

The problem for U.S. drivers is that WTI crude accounts for just a small percentage of the oil used to make gasoline in the United States. And prices for other types of oil -- such as Louisiana Light Sweet, Alaskan North Slope or Nigeria's Bonny Light -- remain high.
 
A

Anonymous

Guest
U.S. oil glut makes $50 oil a possibility
Greg Henderson, Editor, Associate Publisher, Drovers CattleNetwork | Updated: December 13, 2012



America’s booming oil industry could help push oil prices lower over the next few years, and some analysts claim $50 per barrel oil is a possibility.

CNN Money reports that analysts at Bank of America Merrill Lynch expect U.S. oil prices to average about $90 per barrel over the next two years, but prices could sink to the $50 level at some point during that time frame. The Merrill analysts also said global oil prices, which more closely dictate the price of gasoline in the United States, are expected to remain high as growth in global oil supplies lags population growth and economic output.

The drop in U.S. oil prices would likely be temporary, CNN Money reports, caused by the difficulty in moving huge amounts of new oil from places like North Dakota’s Bakken shale or Texas’ Eagle Ford to market. New production from those areas has already led to a glut of oil in the region.

“No one expected output to grow by a million barrels per day last year,” Francisco Blanche, Merrill’s head of commodity research, said in a press briefing in New York. “No one.”

As a result, CNN Money reports, oil has been accumulating in Cushing, Okla. – home to the convergence of several pipelines and dozens of oil storage tankers that act as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate.

Some independent oil price analysts expect U.S. crude oil prices to fall $10 per barrel during the first quarter of 2013, leaving prices in the mid-$70s.

Crude oil traded Wednesday at $86.80 per barrel in New York, up $.01 per barrel from the previous day. Brent crude traded in London at $109.67 per barrel, a gain of $1.66 per barrel on Wednesday.

Gasoline and diesel prices continued moving lower this week, according to the Energy Information Administration. The average price for unleaded gasoline in the U.S. was reported at $3.45 per gallon, down 4.5 cents from the previous week. Average U.S. diesel prices were $3.99 per gallon, down 3.6 cents per gallon from the previous week.

Given the relatively gloomy outlook for oil prices in the U.S., Blanche suggested the U.S. government may have to approve exports of West Texas Intermediate if it wants the oil boom to continue, as $50 a barrel is below the cost of production.
 

littlejoe

Well-known member
[

Remember.......way back when.......diesel was cheaper than gasoline.......???
So what changed that???????? :x[/quote]

Basically, the '% of components' in a barrel of oil is pretty well fixed. (will vary with the oil)

So--say the barrel we're using for example can be broken down into 20% gasoline, 25% diesel, some machine oil, kerosene, road oil--whatever--making up the balance. We cannot get 40% gas and 5% diesel out of that barrel---even if we'd make way more money doing that.

When diesel was cheaper than gas it's because there wasn't as much demand for it as there was for gas. Now diesel demand has grown--and most diesel demand is somewhat non-discretionary and inelastic---locomotives, semis, tractors and feed trucks---etc--they're gonna bite the bullet and do the work---can't not take that long vacation or roadtrip or carpool----
 
A

Anonymous

Guest
Bakkenatnight.jpg


Interesting night satellite picture showing central and eastern MT and western ND.... You can see the sparse and remoteness of much of Montana that is interrupted by the lights of the Bakken activity- that start in Montana about the Sidney area....The heavily lit up area in western ND is around Williston....
 
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