2014 Gasoline Price Forecast

[Meghan54]

Its not going to take a few years to dampen shale production. Shale plays require constant drilling to keep oil flowing at current production levels. If oil keeps dropping, drilling will halt and Shale play production will drop off significantly from where it currently is. If the US wanted to protect our smaller oil and gas players, and the shale industry, they could allow for the exportation of our abundant supply of natural gas.

Considering that when the price of oil began dropping like a rock, U.S. oil industry reps stated that the low prices would prohibit new ventures from going forward, sort of shelving plans for new exploration, but that projects already in the pipeline have already been funded and would continue, assuring that shale was relevant for the next 2-3 years, I'd think a few years is about what shale's got left in it until oil once again hits over $80 or so.

Personally, this isn't a horrid development as I'd rather burn through someone else's oil than our own, at least for now. What I'm afraid of, though, is the low oil prices putting a damper on the fledgling moves we're trying to make toward alternatives to oil.

 

[DucatiMonster696]

Considering that when the price of oil began dropping like a rock, U.S. oil industry reps stated that the low prices would prohibit new ventures from going forward, sort of shelving plans for new exploration, but that projects already in the pipeline have already been funded and would continue, assuring that shale was relevant for the next 2-3 years, I'd think a few years is about what shale's got left in it until oil once again hits over $80 or so.

Personally, this isn't a horrid development as I'd rather burn through someone else's oil than our own, at least for now. What I'm afraid of, though, is the low oil prices putting a damper on the fledgling moves we're trying to make toward alternatives to oil.

This price drop will certainly slow the rate of advancement and adoption of alternatives to oil. However it won't eliminate them because just as we have seen in the past with prices for anything, prices go down today only to go up tomorrow.

That means things which may be put on the shelf today will be pulled out tomorrow. So given the nature of technological developments that means that you'll see even better versions of these alternatives. In other words more refined and price competitive alternatives developing because this price drop is going to ensure the bloated, wasteful and prohibitively uncompetitive ideas on a cost and price basis will more than likely be trimmed away and rightfully tossed out. Thus leaving behind those alternatives which are able to stand on their own in the face of the falling price of oil.

 

[dmcowen674]

This price drop will certainly slow the rate of advancement and adoption of alternatives to oil.

How high do you think they will raise gas prices once all the excess oil is used up?

 

[Londo_Jowo]

Excess oil?

 

[realibrad]

How high do you think they will raise gas prices once all the excess oil is used up?

duh, all the "excess" oil in the ground that nature put there. Nature has been hording all the oil for years.

 

[MagickMan]

Quoting and bolding American shit for brains.

You are, by far, the most ignorant person on this forum. If you had any sense you'd be jealous, for you shit would be a massive improvement.

 

[dmcowen674]

Must have run out of the excess oil already.

Gas went from $2.70 to $2.89 here.

Oil at staggering $66 yet gas going on up like the Jeffersons.

11-30-2014

http://finance.yahoo.com/q?s=clg15.nym

Crude Oil Feb 15 (CLG15.NYM)

-NY Mercantile Watchlist

66.26

7.50(10.17%) 8:03PM EST

 

[First]

^ lulz. Dave has fallen so far he's bitching about price gouging at $2.89, a price he couldn't fathom a couple months ago.

 

[DucatiMonster696]

How high do you think they will raise gas prices once all the excess oil is used up?

The question is not how high, its how high before the Saudis realize that they are trapped and capitulate their ability to raise oil prices by cutting back on production. In the end any price spike due to Opec's shift on production is only going to put them right back in the position they saw themselves in when oil was in 90-100 dollar range, i.e. nation's outside of OPEC delving into their own oil reserves via the use of newer technology provide by the private sector that makes it affordable and possible to do so or worse nation's and businesses developing alternatives to gasoline and thus oil consumption. In other words any price spike means they'll be losing market share when the price of oil or technology catches up with them. However don't expect the price of oil to start climbing soon because word on the street is oil could dip way below 60 dollars a barrel before everything is said and done and it will stay "low" for a while.

 

[DucatiMonster696]

^ lulz. Dave has fallen so far he's bitching about price gouging at $2.89, a price he couldn't fathom a couple months ago.

Couple of months ago we were all supposed to be preparing for 10 dollar a gallon gasoline. Didn't you get the memo?? LOL

 

[realibrad]

The question is not how high, its how high before the Saudis realize that they are trapped and capitulate their ability to raise oil prices by cutting back on production. In the end any price spike due to Opec's shift on production is only going to put them right back in the position they saw themselves in when oil was in 90-100 dollar range, i.e. nation's outside of OPEC delving into their own oil reserves via the use of newer technology provide by the private sector that makes it affordable and possible to do so or worse nation's and businesses developing alternatives to gasoline and thus oil consumption. In other words any price spike means they'll be losing market share when the price of oil or technology catches up with them. However don't expect the price of oil to start climbing soon because word on the street is oil could dip way below 60 dollars a barrel before everything is said and done and it will stay "low" for a while.

Capitalism FTW. Market forces are forcing the price of oil down. US fracking flooded the market and become a cheap alternative to foreign oil, not to mention Russian natural gas. OPEC and Russia are stuck in a tough position. Russia is the largest exporter of natural gas, and exports a lot of oil as well. Crimea is supposed to be a major hub for the European export of Russia's gas and oil, and now, because the US flooded the market with cheap natural gas, it has pushed the price down of gas so much, that its economy is in big trouble. Couple that with the sanctions and the situation looks much worse.

OPEC is trying to keep market relevance by pushing down the price of oil to compete with the alternatives. Once the cost of transitioning over plus the alternative is lower than simply paying for oil, OPEC is done for. The easy cheap money that has been going to OPEC will dry up, and only those who find ways to reduce cost will survive.

This could be a big global shift in power. When the countries that make up OPEC stop making money hand over fist, chickens will come home to roost. Saudi Arabia already had to pay off its people Saudi Arabia already had to pay off its people to keep them appeased.

I see major things happening, and I just hope they are as non violent as possible. We will see what happens in the next few years...

 

[dmcowen674]

OPEC is done for.

This could be a big global shift in power. When the countries that make up OPEC stop making money hand over fist, chickens will come home to roost. Saudi Arabia already had to pay off its people Saudi Arabia already had to pay off its people to keep them appeased.

I see major things happening, and I just hope they are as non violent as possible. We will see what happens in the next few years...

Bahahahahah, have to quote this for laughter later on.

OPEC done for Bahahahahaha

I've got a bridge for sale for ya too.

 

[charrison]

Considering that when the price of oil began dropping like a rock, U.S. oil industry reps stated that the low prices would prohibit new ventures from going forward, sort of shelving plans for new exploration, but that projects already in the pipeline have already been funded and would continue, assuring that shale was relevant for the next 2-3 years, I'd think a few years is about what shale's got left in it until oil once again hits over $80 or so.

There are still significant shale resources in the US that are available for $50/barrel. And dont forget shale resources that exist outside of the US.

 

[Londo_Jowo]

Guess that 400 tanker car train carrying crude I saw the other day must have helped keep prices lower here, prices dropped 4 cent a gallon this week to $2.45/gal. I paid $2.35/gal (Kroger $0.10/gal discount) this morning.

http://www.texasgasprices.com/Shell_Gas_Stations/Richmond/113096/index.aspx

 

[inachu]

Get a load of this:

1-6-2014

http://finance.yahoo.com/news/why-oil-could-below-80-133600943.html

Why oil could go below $80 a barrel

Oil prices could go well under $80 a barrel if a deal is struck to rein in Iran's nuclear ambitions, Eurasia Group President Ian Bremmer predicted Monday.


The price of oil , as he pointed out, is already going down as an extra 500,000 barrels a day of Libyan supply are coming back online after the restart of a key oilfield there.


Last week, oil prices dropped 6.3 percent-its worst week since June 2012. Crude is slightly higher in early Monday trading.

"Even without an Iranian deal, the Saudis are going to have to reduce production just to maintain a price floor above $80 [a barrel] by the end of first quarter," Bremmer said.

Oil at $40 seems possible now and might even hit $30 for a short while:
http://www.bloomberg.com/news/2014-...ble-as-market-transforms-caracas-to-iran.html

 

[realibrad]

Bahahahahah, have to quote this for laughter later on.

OPEC done for Bahahahahaha

I've got a bridge for sale for ya too.

Do you mean to imply that OPEC has unlimited supplies of oil?

Surely you dont mean to suggest that once OPEC runs out of a viable supply of oil that OPEC it will continue to have a geo-political impact?

 

[Pulsar]

duh, all the "excess" oil in the ground that nature put there. Nature has been hording all the oil for years.

Oh come on. You have to under mcowned's thought patterns (or lack thereof). Prices can never drop.

It really comes back to us hoping he goes and gets some help for his issues.

 

[xBiffx]

If the trends continue, I'd say there is a good chance of seeing gas below $2 again. That would be awesome.

http://www.GasBuddy.com/gb_retail_p...verage&city2=&city3=&crude=y&tme=120&units=us

 

[cabri]

If the trends continue, I'd say there is a good chance of seeing gas below $2 again. That would be awesome.

http://www.GasBuddy.com/gb_retail_p...verage&city2=&city3=&crude=y&tme=120&units=us

Drops just after I stopped doing a 250 km commute

 

[dmcowen674]

Oil at $40 seems possible now and might even hit $30 for a short while:
http://www.bloomberg.com/news/2014-...ble-as-market-transforms-caracas-to-iran.html

Looks like $63 was the bottom

Remember the Oil supporters in here said they wouldn't shut down rigs but clearly they are wrong yet again.

12-1-2014

http://finance.yahoo.com/news/oil-longest-losing-streak-since-025428420.html

Oil jumps 3 pct after hitting 5-year low; focus on U.S. shale



Crude markets jumped about 3 percent on Monday, rebounding from five-year lows and heading for their biggest daily gain since at least June after fear that the high U.S. shale output blamed for the oil glut may be shrinking.


A weaker dollar, which makes commodities denominated in the greenback more affordable to holders of other currencies, also enticed buying in oil and other natural resource markets, traders said.


U.S. crude was up $2.34 at $68.49, after a five-year bottom hit at $63.72. For U.S. crude, it was the largest move since May 2013.

"The market clearly got a little overdone to the downside and now it's coming back up, proof that there will be a response from the shale patch to these low prices," said John Kilduff, partner at energy hedge fund Again Capital in New York. "Several shale companies are already reporting capital expenditure reductions next year as their profit margins get thinned out."

"The market is still looking for a new equilibrium below $70, which is a little surprising given that with the current prices, much of the shale oil production in the U.S., or part of it, will be unprofitable," Commerzbank analyst Eugen Weinberg said.

 

[Londo_Jowo]

Remember when I said in here they wouldn't shut down rigs but clearly I was wrong yet again.

FTFY

 

[Pulsar]

Looks like $63 was the bottom

Remember the Oil supporters in here said they wouldn't shut down rigs but clearly they are wrong yet again.

12-1-2014

http://finance.yahoo.com/news/oil-longest-losing-streak-since-025428420.html

Oil jumps 3 pct after hitting 5-year low; focus on U.S. shale



Crude markets jumped about 3 percent on Monday, rebounding from five-year lows and heading for their biggest daily gain since at least June after fear that the high U.S. shale output blamed for the oil glut may be shrinking.


A weaker dollar, which makes commodities denominated in the greenback more affordable to holders of other currencies, also enticed buying in oil and other natural resource markets, traders said.


U.S. crude was up $2.34 at $68.49, after a five-year bottom hit at $63.72. For U.S. crude, it was the largest move since May 2013.

"The market clearly got a little overdone to the downside and now it's coming back up, proof that there will be a response from the shale patch to these low prices," said John Kilduff, partner at energy hedge fund Again Capital in New York. "Several shale companies are already reporting capital expenditure reductions next year as their profit margins get thinned out."

"The market is still looking for a new equilibrium below $70, which is a little surprising given that with the current prices, much of the shale oil production in the U.S., or part of it, will be unprofitable," Commerzbank analyst Eugen Weinberg said.

Dude. "Capital expenditure reductions" is not equatable to shutting down oil rigs. Now you're just blatently lieing.

 

[realibrad]

Looks like $63 was the bottom

Remember the Oil supporters in here said they wouldn't shut down rigs but clearly they are wrong yet again.

12-1-2014

http://finance.yahoo.com/news/oil-longest-losing-streak-since-025428420.html

Oil jumps 3 pct after hitting 5-year low; focus on U.S. shale



Crude markets jumped about 3 percent on Monday, rebounding from five-year lows and heading for their biggest daily gain since at least June after fear that the high U.S. shale output blamed for the oil glut may be shrinking.


A weaker dollar, which makes commodities denominated in the greenback more affordable to holders of other currencies, also enticed buying in oil and other natural resource markets, traders said.


U.S. crude was up $2.34 at $68.49, after a five-year bottom hit at $63.72. For U.S. crude, it was the largest move since May 2013.

"The market clearly got a little overdone to the downside and now it's coming back up, proof that there will be a response from the shale patch to these low prices," said John Kilduff, partner at energy hedge fund Again Capital in New York. "Several shale companies are already reporting capital expenditure reductions next year as their profit margins get thinned out."

"The market is still looking for a new equilibrium below $70, which is a little surprising given that with the current prices, much of the shale oil production in the U.S., or part of it, will be unprofitable," Commerzbank analyst Eugen Weinberg said.

Not going to answer my OPEC question again dave?

 

[dmcowen674]

And so it begins. The midwest refineries are now starting to get cut off from the cheap oil. The Oil Thugs didn't need no stinking Keystone Pipeline to get the oil to the Gulf so they can ship it to foreign Countries at the expense of Americans. How high will midwest gas prices get. We will see soon enough.

12-2-2014

http://www.bloomberg.com/news/2014-...scount-to-wti-shrinks-as-pipeline-starts.html

Canadian Heavy Crude Discount to WTI Shrinks as Pipeline Starts



Heavy Canadian oil prices strengthened from the lowest level in three months after Enbridge Inc. (ENB) started an oil pipeline that will help transport crude to the U.S. Gulf Coast.



The Flanagan South pipeline, which runs from Flanagan, Illinois, to Cushing, Oklahoma, is in service, Graham White, an Enbridge spokesman based in Calgary, said in an e-mail.



West Canadian Select for January was at $16.85 a barrel below U.S. benchmark West Texas Intermediate crude, according to Net Energy Inc., a Calgary-based broker. WCS traded at a $17.75 discount last week, the most since Aug. 20, data compiled by Bloomberg showed.


Flanagan South and the new Seaway Twin line, linking Cushing to the Houston area, may almost double the volume of heavy Canadian crude reaching the Gulf Coast to 400,000 barrels a day next year, Jackie Forrest, a vice president at ARC Financial Corp. in Calgary, said last month.

 

[CPA]

And so it begins. The midwest refineries are now starting to get cut off from the cheap oil. The Oil Thugs didn't need no stinking Keystone Pipeline to get the oil to the Gulf so they can ship it to foreign Countries at the expense of Americans. How high will midwest gas prices get. We will see soon enough.

12-2-2014

http://www.bloomberg.com/news/2014-...scount-to-wti-shrinks-as-pipeline-starts.html

Canadian Heavy Crude Discount to WTI Shrinks as Pipeline Starts



Heavy Canadian oil prices strengthened from the lowest level in three months after Enbridge Inc. (ENB) started an oil pipeline that will help transport crude to the U.S. Gulf Coast.



The Flanagan South pipeline, which runs from Flanagan, Illinois, to Cushing, Oklahoma, is in service, Graham White, an Enbridge spokesman based in Calgary, said in an e-mail.



West Canadian Select for January was at $16.85 a barrel below U.S. benchmark West Texas Intermediate crude, according to Net Energy Inc., a Calgary-based broker. WCS traded at a $17.75 discount last week, the most since Aug. 20, data compiled by Bloomberg showed.


Flanagan South and the new Seaway Twin line, linking Cushing to the Houston area, may almost double the volume of heavy Canadian crude reaching the Gulf Coast to 400,000 barrels a day next year, Jackie Forrest, a vice president at ARC Financial Corp. in Calgary, said last month.

I'm really confused about your latest complaint. Are you bitching about Canadians hurting Americans? lol