2015 Gasoline Prices

[Blanky]

With the recent crash in oil prices (http://data.cnbc.com/quotes/@CL.1/tab/2)--down by more than 50% in just eight months--we're paying the least for gas we have in more than five years (http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=3).

An otherwise significant plunge in oil prices globally is having an even more profound impact here in the US because of the huge strengthening in the US dollar.

I will readily admit I never expected to see gas for so little again in my life. National average is now $2.05 and many states are a good bit under $2. I bet we finish the end of this year higher than we are now, but who knows.

This isn't stopping a lot of people with very short memories from buying bigger vehicles: http://www.reviewjournal.com/busine...ne-prices-helping-spark-sales-bigger-vehicles I think the savvy buyer uses this opportunity to pick up a Prius.

 

[realibrad]

This price is likely to even go lower. I dont see the price changing for a while either. Unless we see a big jump in the world economy, we may be enjoying this price for a while.

 

[Spungo]

This isn't stopping a lot of people with very short memories from buying bigger vehicles: http://www.reviewjournal.com/busine...ne-prices-helping-spark-sales-bigger-vehicles I think the savvy buyer uses this opportunity to pick up a Prius.

The reverse is true as well. When oil hits $150 per barrel again, you can buy a used F-150 for next to nothing.

 

[cbrunny]

Diesel is catching up. Filled up at 1.02/L last night, down from 1.20/l a few weeks ago.

 

[Sheik Yerbouti]

Yes, please let diesel catch up. I hate paying ~$1/gal than regular gas.

 

[mammador]

you all have a shitload of oil stored away......i don't think this thing will affect you that much.

 

[TheSlamma]

$1.69 a gallon.

But I was thinking of pulling up Gasbuddy and looking for the most expensive gas in the entire city and getting that just so I could be an oil thug victim

 

[nickqt]

With the recent crash in oil prices (http://data.cnbc.com/quotes/@CL.1/tab/2)--down by more than 50% in just eight months--we're paying the least for gas we have in more than five years (http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=3).

An otherwise significant plunge in oil prices globally is having an even more profound impact here in the US because of the huge strengthening in the US dollar.

I will readily admit I never expected to see gas for so little again in my life. National average is now $2.05 and many states are a good bit under $2. I bet we finish the end of this year higher than we are now, but who knows.

This isn't stopping a lot of people with very short memories from buying bigger vehicles: http://www.reviewjournal.com/busine...ne-prices-helping-spark-sales-bigger-vehicles I think the savvy buyer uses this opportunity to pick up a Prius.

Average price for the year probably between $2.25 - $2.45, with a peak around $2.80 during the summer.

 

[Sonikku]

Northern NY has been very resistant in lowering gas prices. $2.34 in most places, with most places charging even more than that because they've fallen in love with something called "the cash price". (debit card purchases pay more)

 

[compuwiz1]

We're at $1.69 here...and the major stations, Exxon, Shell, Mobil & Texaco, which were the ones who held highest for the longest are finally following suit.

 

[Meghan54]

We've drifted down to $1.72. The local majors, Exxon/Mobil, BP, Shell, are $1.78 and up....lowest is Exxon.

 

[Londo_Jowo]

In before McOwned posts this information and put his odd twist on it.

Looks like shutting down wells is resulting in rising oil prices. Also I suspect we will see high gas prices in the near term due to oil refineries worker going on strike at several refineries this weekend.

http://www.reuters.com/article/2015/02/02/us-markets-oil-idUSKBN0L601K20150202

Crude oil prices rose on Monday as investors shrugged off bearish Chinese data and news of a U.S. refinery strike and focused on a falling U.S. rig count that signaled lower production down the line.

 

[sandorski]

The reverse is true as well. When oil hits $150 per barrel again, you can buy a used F-150 for next to nothing.

Except buying a Fuel Efficient vehicle now has no downside, especially if it's cheaper.

 

[Blanky]

As of 2/6/2015:

http://www.cnbc.com/id/102402892

Oil rally holds, promising second weekly gain

Prices remain roughly 50 percent below their peak from the middle of last year, and no rapid recovery is expected amid rising global inventories and steady OPEC supply.

But further declines in the U.S. oil-rig count, concerns over dented output from Libya, a key Mediterranean oil producer, and the anticipation of stronger U.S. jobs data boosted prices.

The continual plunge in prices was fun while it lasted. Hopefully it can hold low for a while...

 

[Tombstone1881]

They've already bottomed out and are now creeping back up.

It was enjoyable while it lasted, but we will soon be back to the same old same old.

 

[Blanky]

Alberta's premier says they'll continue to ramp up production over the next two years:
http://www.cnbc.com/id/102405316

A 4M population province has 121,000 people directly employed in the oil industry. Not surprising that oil-heavy provinces will take a hit, e.g. newfoundland http://www.cbc.ca/news/canada/newfo...d-low-oil-prices-td-economist-warns-1.2927589

In addition to shrinking oil prices, Tulk said gross domestic product in the province will fall by 1.6 per cent this year — making it the second-worst performance among the provinces, behind Alberta.

 

[cabri]

Bad news for Dave :thumbsup:


Oil Could Plunge to $20, and This Might Be 'the End of OPEC'

The recent surge in oil prices is just a "head-fake," and oil as cheap as $20 a barrel may soon be on the way, Citigroup said in a report on Monday as it lowered its forecast for crude.

Despite global declines in spending that have driven up oil prices in recent weeks, oil production in the U.S. is still rising, wrote Edward Morse, Citigroup's global head of commodity research. Brazil and Russia are pumping oil at record levels, and Saudi Arabia, Iraq and Iran have been fighting to maintain their market share by cutting prices to Asia. The market is oversupplied, and storage tanks are topping out.

A pullback in production isn't likely until the third quarter, Morse said. In the meantime, West Texas Intermediate Crude, which currently trades at around $52 a barrel, could fall to the $20 range "for a while," according to the report. The U.S. shale-oil revolution has broken OPEC's ability to manipulate prices and maximize profits for oil-producing countries

...
Link

 

[desy]

Albertas premier doesn't drill for oil the oil companies do and they are already letting go of staff, I know lots of people who work in Fort Mac
Fact, oil will go up by the end of the year as marginal oil comes off production

 

[cabri]

Albertas premier doesn't drill for oil the oil companies do and they are already letting go of staff, I know lots of people who work in Fort Mac
Fact, oil will go up by the end of the year as marginal oil comes off production

And then what will happen when the price goes up and the marginal production comes back on line?

This will be a sinusoidal price for a period of time.

 

[desy]

Exactly
undulating plateau of peak oil and that's where we are at now

But not so fast says Steven Kopits from energy business analysis firm Douglas-Westwood. Total global oil supply growth since 2005 – 5.8 million barrels per day – came from unconventional sources, shale oil and NGLs in particular, Kopits recently told the audience at Columbia University’s Center on Global Energy Policy.

“Not only US, but global, oil supply growth is entirely leveraged to unconventionals right now,” and the legacy, conventional system still peaked in 2005, he said. This gets a bit technical, as shale oil and liquids produced with natural gas are fed into the main crude oil stream and priced as such. But the strong degree to which increasing oil supply growth is dependent on unconventional sources is important to remember and often gets lost in the exuberance over top-line output figures.

And despite prolific incremental oil and gas production made possible by hydraulic fracturing and horizontal drilling advances, maintaining legacy production has been expensive and arguably of limited success.

Total upstream spend since 2005 has been $4 trillion, of which $350 billion was spent on US and Canadian unconventional oil and gas, with an additional $150 billion spent on LNG and GTL, according to Kopits’ presentation. About $2.5 trillion was spent on legacy crude oil production, which still accounts for about 93% of today’s total liquids supply. And despite that hefty investment, legacy oil production has declined by 1 mmb/d since 2005, said Kopits.

By comparison, between 1998 and 2005 the industry spent $1.5 trillion on upstream development and added 8.6 mmb/d to total crude production. The industry “vaporized the GDP of Italy,” with its $2.5 trillion upstream spending for oil since 2005, which barely maintained the legacy oil production system. Kopits argues this level of investment by the major oil companies appears unsustainable, and the major’s current cost structure is troublesome.

Collective oil production of the world’s largest listed oil companies has faltered, while upstream capex soared, Kopits said. Profits have suffered because costs are rising faster than revenues in a range-bound crude oil price environment. “E&P capex per barrel has been rising at 11% per year,” he said, but Brent oil prices have largely been flat. As a result, Chevron, ExxonMobil, Statoil and BP all recently put major projects on hold or cancelled them outright.

“If your costs are rising faster than your revenues, do you sell your assets? The majors have been doing this, but is it sustainable?” asked Kopits. The industry was able to maintain conventional crude oil production levels by throwing $2 trillion dollars at the system – essentially “putting it on steroids” – but now that’s run its course and capex is being curtailed, a trend that looks set to continue, in his view.

 

[Londo_Jowo]

Looks like shutting down wells is not slowing down production in the US. Wonder how much oil prices will drop.

http://www.reuters.com/article/2015/02/19/us-markets-oil-idUSKBN0LN01M20150219

Oil falls below $59 on record-high U.S. crude stocks

Brent crude oil prices fell below $59 a barrel on Thursday after U.S. government data showed crude stocks hit a record high last week.

U.S. commercial crude oil inventories rose by 7.7 million to a record 425.64 million barrels in the week ended Feb. 13, said the U.S. Energy Information Administration (EIA).

The build was the biggest weekly addition in barrels since records began in 1982, exceeding analysts' expectations of a 3.2 million barrel rise.

 

[desy]

There is still a burp of oil to come through the system over the next few months as they didn't shutdown existing wells just the drilling of new ones. Once they start slowing as shale does quickly then the price should recover some

 

[Blanky]

According to gasbuddy ntl prices are up $.25 or so in the past three-four weeks. Oh well, I don't think any of us thought it would last forever!

 

[Blanky]

So it's a year later and...gas prices are lower still. Awesome.

 

[werepossum]

So it's a year later and...gas prices are lower still. Awesome.

Going up though. One day last week gas coming into work was $1.359. That night when I came home, it was $1.599. And I was of course sitting dead on empty.