Things that made you Facepalm today (Political Version)

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Originally Posted by Gelston

You know a lot of them don't drill unless it hits a certain price because they lose money right? That is why the Haynesville Shale has constantly been shut down and restarted based on oil price fluctuations. The prices start to get much higher, a lot of shale fields will become profitable and begin to open and/or expand and drive prices back down... .And then shut down and cause another big layoff.

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The entire industry is built on inflated costs. Around here the sand plants hire people at 5 to 6 times the current market price for labor. Abuse the fuck out of them for a couple of years, then as price goes down they just pull the plug, dissolve the company, and ignore reclamation of the land.

Most plants are back up and running again, so someone's upping production

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Originally Posted by Alfster

He has a habit of switching his stances in things like...polls. during the previous administration he argued left and right about how polls to dear leader were unfair and shouldn't be an indicator if he's popular. Fast forward a year and he is using polls to "prove" how bad the current president is.

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Talk about whoosh. Holy shit. How do you have less self awareness than Seran?

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Originally Posted by Alfster

The entire industry is built on inflated costs. Around here the sand plants hire people at 5 to 6 times the current market price for labor. Abuse the fuck out of them for a couple of years, then as price goes down they just pull the plug, dissolve the company, and ignore reclamation of the land.

Most plants are back up and running again, so someone's upping production

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Oil has gotten big around here again too, and my mother has always been an Oil and Gas accountant and she is being hit with job offers all over, so I can say from my own world view that oil production is up.

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Originally Posted by Gelston

You know a lot of them don't drill unless it hits a certain price because they lose money right? That is why the Haynesville Shale has constantly been shut down and restarted based on oil price fluctuations. The prices start to get much higher, a lot of shale fields will become profitable and begin to open and/or expand and drive prices back down... .And then shut down and cause another big layoff.

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Yup, I even provided that in the quotes $25-35 per barrel covers the costs of digging new wells. They want to keep profits per barrel high so they haven't increased production. They don't want the price to go negative like it did a few years ago.

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Originally Posted by Alfster

You're arguing with the conservative version of Seran. It's not worth your time.

He has a habit of switching his stances in things like...polls. during the previous administration he argued left and right about how polls to dear leader were unfair and shouldn't be an indicator if he's popular. Fast forward a year and he is using polls to "prove" how bad the current president is.

His only consistency is if it goes against his political views it must be wrong and if it's consistent with his view it is 100% correct. Serious bias with that whacko.

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Quoted for when I need to remind Seran that everyone on all sides here thinks he's stupid.

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Originally Posted by drauz

Yup, I even provided that in the quotes $25-35 per barrel covers the costs of digging new wells.

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25-35 dollars per barrel is for things like wages, maintenance, taxes, fees, permits, regulations, and other expenses, that has nothing to do with the cost of construction.

Many wells either don't produce any oil at all or don't produce enough to break even.

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Originally Posted by Tgo01

25-35 dollars per barrel is for things like wages, maintenance, taxes, fees, permits, regulations, and other expenses, that has nothing to do with the cost of construction.

Many wells either don't produce any oil at all or don't produce enough to break even.

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Uh no, that is exactly why it's called the break even price. Oil in excess of the break even price makes a new well economically feasible as its revenue stream exceeds the cost to drill, complete and maintain the well.

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Originally Posted by Seran

Uh no, that is exactly why it's called the break even price. Oil in excess of the break even price makes a new well economically feasible as its revenue stream exceeds the cost to drill, complete and maintain the well.

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Uh no.

Break even price is for an existing well to not cost the company money to maintain it. They already know their costs and how much the pump will generate, so it's easy to determine what price per barrel they have to make above in order to make any profit.

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Originally Posted by Parkbandit

Uh no.

Break even price is for an existing well to not cost the company money to maintain it. They already know their costs and how much the pump will generate, so it's easy to determine what price per barrel they have to make above in order to make any profit.

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The West Texas Intermediate (WTI) oil price companies need to profitably drill a new well in the U.S. is increasing, according to the Dallas Fed Energy Survey.

In the organization’s first quarter 2022 report, it was revealed that firms needed $56 per barrel on average to profitably drill in the country. Across regions, average breakeven prices to profitably drill a new well ranged from $48 per barrel to $69 per barrel, with breakeven prices in the Permian Basin averaging $52 per barrel. Eagle Ford drilling was shown to have the lowest breakeven price at $48 per barrel, and ‘other U.S. shale’ had the highest at $69 per barrel.

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There is still tons of profit they could make from new wells with the current price of oil, but they don't want to lower the price with more supply.

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Originally Posted by drauz

There is still tons of profit they could make from new wells with the current price of oil, but they don't want to lower the price with more supply.

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How many actual barrels need to be sold at those prices before they see a profit? How long does it take to create a new well? How long does it take to produce and sell those barrels? If they opened up all these new wells how quickly will prices drop? How far will they drop? What incentive do they have for opening new wells other than people's feelings?