$20 Barrel Oil?

[sillysod]

[cosmok]

And there it is, will be interesting to see where the bottom is before the weekend.

[89coupe]

$29.28

[ExtraSlow]

Can we hit zero today?


» Click image for larger version

[ExtraSlow]

On a related note, mini poll:

Would you prefer
A) $40 oil and $6 gas or
B) $60 oil and $4 gas?

[OU812]

cheap gas i dont care so much as i am not in o and G if i were than probabaly higher oil so I could have company golf days, stampede parties and all in xmas parties again.

Yeah blah blah trickle down effect.

[Feruk]

if we had $60 oil, then gas could be $1 for all I care.

[riander5]

60 and 4. If gas was at 6 I'm scared producers might build their own gas plants without me

[pheoxs]

Originally posted by ExtraSlow
On a related note, mini poll:

Would you prefer
A) $40 oil and $6 gas or
B) $60 oil and $4 gas?

A) for sure, but most of my work is on the gas side so I'm fairly biased

[sputnik]

Originally posted by ExtraSlow
Can we hit zero today?


» Click image for larger version

I love how oil goes from over $100/bbl to under $30/bbl and people are still accusing people of being chicken little.

Eventually you have to admit that this isn't good. With no recovery in sight within the next year or two Alberta is in some serious trouble. Remember how natural gas dropped to under $3/GJ a few years ago and hasn't recovered. Oil could be the same thing. It could very well sit under $40 for a decade.

By posting images like this you just look like this guy.

[Xtrema]

I think we have to ask ourselves how to operate at $20 range for the long run.

World economy is tanking. Stimulus methods has ran out since 2009. On top of that we have oversupply issue.

[adamc]

I think people are just refusing to believe that their livelihoods may never come back. Sink or swim time, boys.

[sputnik]

Originally posted by Xtrema
I think we have to ask ourselves how to operate at $20 range for the long run.

World economy is tanking. Stimulus methods has ran out since 2009. On top of that we have oversupply issue.

Agreed.

This is no longer a situation where Alberta can wait things out for a year and idly watch oil go back to $60-80.

I have a feeling crude is now the new natural gas and will be for a long time.

[ickyflex]

I laugh at the idea of people thinking this is a long term issue.

Oversupply is a minimal and it is NOT natural gas because NG is landlocked to NA and that is the issue.

Oil demand is GROWING.

It's a boom and bust cycle, simple as that. It could turn the other way just as quickly as it went from 100-30.

Time will tell

[nzwasp]

As the WTI price gets lower the brent crude price seems to be coming closer and closer to being almost the same as the WTI price. I always thought there was a % difference between the two. Or rather what drives the differential between brent and wti, why have two different price groups for oil.

[ickyflex]

Originally posted by nzwasp
As the WTI price gets lower the brent crude price seems to be coming closer and closer to being almost the same as the WTI price. I always thought there was a % difference between the two. Or rather what drives the differential between brent and wti, why have two different price groups for oil.

WTI was generally NA landlocked (Us couldn't export)
Brent was international pricing

Now that US can export it has driven the spread between the two to narrow.

[Xtrema]

Originally posted by ickyflex
It's a boom and bust cycle, simple as that. It could turn the other way just as quickly as it went from 100-30.

Time will tell

Best bet? Donald Trump become US Prez end of the year. ISIS pull off another 9/11. And plenty of booms in middle east and we will be back in business.

I can't see a peaceful world will have more than your typical 2% annual growth in demand. And that's gonna take a while to get it from $30 to $60.

[holden]

At what price will the oil be worth less than the barrel it's sold in? I was thinking of storing some but can't find cheap drums, lol, j/k.

http://www.amazon.com/Pegasus-Hobbie.../dp/B001IYQFLK

[killramos]

Originally posted by ickyflex


WTI was generally NA landlocked (Us couldn't export)
Brent was international pricing

Now that US can export it has driven the spread between the two to narrow.

I wonder if we see WTI go above Brent with increased export.

WTI is a slightly higher quality of oil than Brent by a degree or 2 API

[Mitsu3000gt]

IMO this isn't really long term, but 2016 and possibly some or all of 2017 is going to be much of the same. So many companies don't have hedges for 2016 and it's pure survival mode. Those $75 CAD CAL16 hedges everyone was scoffing at 6-8 months ago are starting to look pretty good right now.

I'd have much rather had a 6 month period of $20 oil than a 2+ year period of $30-40 oil.

There also is a price floor. If the price gets to the point that large amounts of production start to get shut in, supply goes down. When the price creeps up, not all of that shut in production can come on like flipping a switch and there might be some short term relief.

Forecasting anything is a wild guess at best. Predictions range from $25 - $90 US/bbl for end of year. So basically nobody has a clue haha.

This really blows though, I'd love to be paying $1.50+/L for gas right now, that would be the least of our problems.

Natural Gas is as bad or worse, the over supply, warm weather, and sheer efficiency of new projects is crazy. Some places are producing so much gas right now that the infrastructure isn't even there to take it all away, so they become price takers. There are also tons of projects just waiting to come on, so if gas hits $3-4, wham, new production comes on and down goes the price again.

Can't wait for this to be over, it's not fun.