Price of Oil

The price of oil is now well below zero cents per barrel.
What do you reckon that will do to production aside from effect every industry on the planet.

Our fuel prices have dropped slightly in Canberra.
Oil Production might cease, share prices will drop or prices might rise or maybe the entire industry will spear in wheels up.
Maybe buy some shares for when it all gets back to normal

Russia and Arabs have teamed up to punch the american oil industry in the head.
Not a TKO but a total knock out,ouch it's going to hurt


cheers   moredeep

Last week paid 73.9c/lt for Petrol in Adelaide ( Diesel for the Cruiser 113c so no travel no D)

In Melbourne town, sadly not across the board.

moredeep wrote:Russia and Arabs have teamed up to punch the american oil industry in the head.
Not a TKO but a total knock out,ouch it's going to hurt


cheers   moredeep

The Yanks have got more oil in capped oil wells than they know what to do with.
We already export more of our own oil.than what we use ourselves  So no reason why we should run out of oil...Same with our gas.

Neither Australia nor USA need middle east oil

There are also many capped oil/gas wells in East Gippsland dating from the mid 1950's.
On our property alone, two were capped with an ongoing location royalty paid to my Father.

Re (There are also many capped oil/gas wells in East Gippsland dating from the mid 1950's.
On our property alone, two were capped with an ongoing location royalty paid to my Father.)

If So, why are Companies looking at Drilling/processing oil in the Bight 2km or so below the ocean surface?

They can tell us what they like Dave for they're the ones in power.
Fellas, what exactly are you guys trying to work out app-art from the fact that when the mega rich say to the government Jump, the government says yes sir, how high sir. As for the a**e end of the stick consumer, the guarantors of society who end up paying for every rotten to the core deed/stuff up/blunder committed by government/mega rich, I leave you with the words "go on, get away you old bugger" Now I wonder who it were that said that?    
Whats a matter with people these days, of course you can trust in the deeds/workings of governments, just be prepared to pay for those deeds/workings sometime later down the track
As for the price of oil Adrian, the oil barrens in conjunction with government, charge what they want, when they want & say to the rest of us consumers, take it or leave it buddy, for it is what it is.

Cheers Kon

Some oils aint oils Sol info here:
The price of oil can really screw the economy if it is caused to go low. If the price is too low then it is no longer worth pumping out of the ground.
https://www.investopedia.com/articles/economics/08/determining-oil-prices.asp

I wish I can say enjoy the price drop while we have it Adrian, but how can I, for no ones going anywhere.
You are right though, for if the oversupply of stored crude oil, continues to slow down production any further, future production will all but come to a halt, but this is all to be expected according to the supply/demand scale of economics. Less the corona virus continues to represent a major threat to each nation, oil price across the world will remain low, but the moment the world feels it safe enough to open the doors for travel once more, watch what happens to petrol prices. For the time being, oil companies have no choice but to reduce production & sell off whats in storage.
My fear is that the longer people get use to these stage 3 lock-down restrictions (necessitating the continual shutting down of many an industry) the longer the time it will take to bring a nation & its economy back to where it once were.
I can only hope, that when this virus outbreak is over or under control, there's nothing more sinister on the nearby horizon, awaiting to rear its ugly head.

Cheers Kon.

Thieving b*******s in my town have long belonged to a cartel ripping off customers. Top price is today, $135.9, anyone wonder why I can drive 10km and get it for $1.15 and reduce that 4 cents with loyalty card.
When you get back on the road NEVER fill up your diesel in Rockingham.
*** Happened back in the 90's, was on Nightshift and heard diesel was dropping 4 cents at midnight, thought you bewdy will fill up on way home.
Swung into my usual servo which was owned by a local member of the council. Noticed the fuel price hadn't dropped, so before filling I went in and asked the owner why the price hadn't come down? His reply, I thought was feasible at the time. "When we have sold the fuel we bought at the higher price we'll drop it the 4cents." I accepted this explanation.
Months rolled by and once again was on N/S and heard diesel was going up at midnight. On my home in the morning I always drove past my regular servo and noticed yesterdays price had been increased overnight.
Swung in and went in and confronted the owner. "Why when the fuel price goes down you wait until you have sold current stock. The price increased at midnight last night and you have immediately put your price up! Why didn't you sell all your present stock before increasing"  
He spluttered and coughed and went a scarlet colour, I said, "Calm down, won't trouble you again you thieving P***k!"
AND I have never darkened that servo doors ever again.    

It's every man for himself these days Pete,
we have 4 servo's in town all the prices are roughly the same.
I'm sure they get onto the phone to each other and have a little pow wow as too what price they'll keep it in town?[mini cartel]
I'm not paranoid just skeptical 


cheers   moredeep

moredeep, if you reckon petrol prices are high in Castlemaine, just check out prices in Daylesford. Always higher than anywhere else in central Victoria. I never buy fuel there but always am appalled at the prices when I drive through. Can be ten cents a liter higher than in Bendigo.

Fellas, calm down & look on the bright side of things. Here in Australia we can at least voice our voices. Try doing so in some other countries of the world, where you'll be hog tied, flogged & jailed before you know it & that's for speaking truth, not alone lies.

Cheers Kon.

Oh the irony of it all. The cheapest fuel for decades and we can't drive anywhere much. But the reason our fuel price is higher is because it comes from Singapore. And I see us diesel owners are still subsidising petrol.

Not to worry, another month should see us on the move again. As for petrol pricing, I never chase it as it isn't worth while because where I live the prices vary only a little. And on the road we buy it when we need fuel whatever the price as it usually doesn't mean much in the long run.

granite2 wrote:

Not to worry, another month should see us on the move again.
 

I think that is an unrealistic and optimistic hope.

granite2 wrote:Oh the irony of it all. The cheapest fuel for decades and we can't drive anywhere much. But the reason our fuel price is higher is because it comes from Singapore. And I see us diesel owners are still subsidising petrol.

Not to worry, another month should see us on the move again. As for petrol pricing, I never chase it as it isn't worth while because where I live the prices vary only a little. And on the road we buy it when we need fuel whatever the price as it usually doesn't mean much in the long run.
 

Prices at my local servo:
Super..138.0
95 oct..130.0
91 oct... 115.0
Diesel...130.0

A tank of fuel would normally last us approx one week. at 176 c per litre...Now it is lasting three weeks and it is roughly 38 cents per litre cheaper.

Time to buy some oil shares??


cheers  moredeep

ps ,I was the same reg,always gasped when I saw prices in Daylesford, felt sorry for the locals

Countless oil drill holes capped in the NW 60/70's. Australias oil storage is now full and there is talk we will store the excess in the US in case there is a crisis? As Adrian mentioned, stop pumping it! If push comes to shove, store it in the ground. Pour it back down the holes.

Time to drag out those thumping V8's again

cheers   moredeep

Wells are often capped because it is uneconomic to pump it out , the reserves are not great . Yes, Australia is going to buy and store oil in the USA whilst it is cheap . They are also looking into making more storage in Australia . Australian crude oil is what they call light , you need that thick black stuff to make oils . So it has to be imported . But we have less refineries now ....