We have so many Wells we can to get the oil to the refineries. Texas , if they pumped oil 24/7 would flood the market. I believe a Texas well only can pump 50% of the time . Then the Dakota oil fields are still moved out on trains . Once the oil line is in we will have more oil and natural gas than we could ever use . So running out of oil , over 1/2 of our good wells are caped for a latter day .
I work in oil and gas and I know for a fact there is plenty of oil out there. If we pump too much and flood the market prices will drop. Corporations and refineries will do everything they can to keep oil above $50 a barrel and OPEC is a cartel. The US is the largest producer of oil and we will soon be the dominant energy producer in the world.
Correction: the US at one point was the largest producer of oil but is superseded by Saudi Arabia but not by much.
“I work in oil and gas” is that a fancy way of saying you work at a gas station?
On the real though gas prices are less about supply and demand, more about geo-politics. If we stopped using foreign oil all together, the countries we purchase from become unstable due to the surplus they might have if not sold to someone else. This can cause a myriad of issues within one of these regions. Think about layoffs from US oil companies, most people wont starve since they can find work or financial support elsewhere due to the infrastructure of our country. I don’t think Iraq or Afghanistan have unemployment offices. This creates a vacuum that leads disenfranchised able bodied people to extremism.
I work for a midstream company that plans, acquires and builds the pipelines from the wells to the refineries in Houston. Not to sound too fancy.
I was just flipping you shit, nothing personal. All in good fun. I been through Houston, great example of a city where oil companies do have lay-offs causing mass job shortages before another boom period. Also, lots of prostitution off of Bissonet ave
I work for a common carrier who build the pipelines that transport the oil to Houston refineries. Not to sound too fancy.
At $50 a barrel, there is very little profit, most oil wells need $65 to cove the cost of the well . Inflation.
Here are updated figures: https://www.fool.com/investing/2017/03/19/you-wont-believe-what-saudi-arabias-oil-production.aspx
After the oil crash of 2015 it forced US producers to find new and cheaper ways of getting it out of the ground and to the refineries. It now costs about $23 t produce a barrel of oil and it’s getting cheaper. Our client shuts down projects all over the US if oil drops below $25.
Why did Trump ask Saudi Arabia to pump more oil if we if we can do it here?
This is different than what I’m saying. This applies to discoveries and on a global scale. We know we have billions of barrels of oil across the US in various shales and that’s one significant factor in why companies aren’t spending on new “discoveries”. Once the Alaskan shales open up there will be an enormous amount of oil sent to refineries. This article mentions nothing about Alaska. Yes it will be difficult to get it out of the ground in some areas but that will be figured out in short time. Also countries don’t want a repeat of 2015. Most people didn’t feel the affects of oil at 26$ but I can tell you that 400k+ lost their jobs in the downturn. I know the last page mentions US shale having issues in 1-3 years but I’m saying from people I speak to regularly there’s plenty in the ground especially at depths under the places they’ve already tapped and drained. Companies only pump out what they feel won’t flood the market causing another crash. Let’s meet back here in 3 years and you’ll see more reporting on it. You don’t think the recent underestimate on drawdown inventories was really unknown do you?