Gas prices

[Captain Crawfish]

You'll see 2.70 rbob has fallen hard not a good sign. Market has been selling off

[SMKR]

This is not to say that every well is unconventional, but it gives an idea of break-even numbers (last fall).



But remember that the margin also has to pay for exploratory drilling and other things. Not all wells make money.


Other sources say this:






Not US, but some visibility:

http://www.petroleum-economist.com/A...rice-fall.html

Once oil hit in the low $80s per barrel everything started coming to a halt in the Permian for us. Also this time of year each year in regards to budgets always meant a slow down.

[Sgt Beavis]

WTI crude is at $84.72 this morning. Hopefully it won't got much lower. That is pretty close to a fair price.

Wholesale Gasoline commodities are at $2.24. THAT directly affects the price at the pump. You'll see that price (with added expense and profit margin) within a couple more weeks. Prices in Denton finally started diving below $3 here. WOOHOO!

If you look at the commodities indexes, you'll see that they have been dropping since July. Just my layman opinion here but I'm thinking the Fed has been cutting back on all that free money which investors have been putting into commodities. It has been mostly speculative driven for a long time now..

[phaux]

Lol, seeing as which ISIS is selling massive quantities of "their" oil for around $25 a barrel I don't think any dropping oil prices from any country has anything to do with them...

[32vfromhell]

Oh boo-hoo, the oil companies like exxon/mobil wont break their previous profit record by leaps AND bounds this year, just leaps.

[Trip McNeely]

Oh boo-hoo, the oil companies like exxon/mobil wont break their previous profit record by leaps AND bounds this year, just leaps.

Oh boohoo A successful company will make a profit. Boohoo Capitalism.

[Captain Crawfish]

Lol, seeing as which ISIS is selling massive quantities of "their" oil for around $25 a barrel I don't think any dropping oil prices from any country has anything to do with them...

nope this is the unwind part and its usually not very fun

[32vfromhell]

Oh boohoo A successful company will make a profit. Boohoo Capitalism.

And the free markets are dictating that prices are too high as the supply outweighs the demand.

So any of this "warnings that price must remain higher to keep our wells in operation" should hang right over the head of your O&G buddies in risk analysis or forecasting.

[Trip McNeely]

And the free markets are dictating that prices are too high as the supply outweighs the demand.

So any of this "warnings that price must remain higher to keep our wells in operation" should hang right over the head of your O&G buddies in risk analysis or forecasting.

You have no idea what goes into forecasting how to develop an oil and gas well, nor do you have any idea the amount of money and risk that goes into it. So don't act like you do.

[Roscoe]

Gas prices are the smallest part of profits for the O&G companies.

[Trip McNeely]

Gas prices are the smallest part of profits for the O&G companies.

Exactly. No one ever mentions how much the Govmt shaves off and their overall involvement in regulating which in turn costs even more off the bottom line. Refinement into the many different things oil and gas creates is probably the biggest factor.

[Roscoe]

Exactly. No one ever mentions how much the Govmt shaves off and their overall involvement in regulating which in turn costs even more off the bottom line. Refinement into the many different things oil and gas creates is probably the biggest factor.

Production and refining are the highest margin parts of the operations.

[talisman]

You have no idea what goes into forecasting how to develop an oil and gas well, nor do you have any idea the amount of money and risk that goes into it. So don't act like you do.

Calm down, Francis.

[helosailor]

You have no idea what goes into forecasting how to develop an oil and gas well, nor do you have any idea the amount of money and risk that goes into it. So don't act like you do.

Oil futures forecasting in action...

[paul_376]

Under $3 now