Strange as it might seem the average price paid for a bbl of oil is only 1 or 2 dollars less in the third quarter vs the second quarter. Where the dramatic difference is in the future mark to market pricing on the hedges. The current prices is way down and this will be reflected in the SEC required mark to market pricing. Those losses last quarter for mark to market pricing will be turning into huge gains this quarter while the realized price received for a bbl of oil will not be significantly changed on average quarter over quarter
Net refined petroleum product exports now exceed 2 million barrels daily and the number is rising rapidly. Total exports now exceed 4 million barrels daily. The net effect is highly positive for both the USA and the world economies.
US EXPORTS oof refined products exceeded imports in 2011 for the first time since 1949. Now exceed by 2 million per day
Pio, the 1.7 million number is net. We are indeed exporting close to 4 million bbl daily but continue to import on east coast. Exports are raising while imports fall
In July exports of refined petro products reached 3.8 million bbl per day. While great for the country it is also huge for the environment world wide. No other country exporting petro products has a refining industry that works under rules that are even close to those imposed by the EPA on our industry.
Look at it this way. We are exporting our EPA standards with every barrel of exported Diesel
The actual number is 3.8 million bbl per day. This is a huge plus for the world environment as it also means the US is exporting its very stringent EPA standards with those refined barrels of diesel etc
"U.S. refiners are selling more fuel abroad than ever before, effectively exporting the American energy boom to the four corners of the world.
As crude production soars in places like the Eagle Ford shale formation in Texas, U.S. refiners along the Gulf Coast are increasingly using local oil, which is less expensive than the North Sea crude that European refiners use. That often means diesel and other fuels made in the U.S. are a bargain abroad even after adding the shipping costs.
While federal law bars overseas shipments of most U.S.-produced oil, refiners can export petroleum products created from that crude, including gasoline, diesel and jet fuel.
In July, U.S. refiners shipped a record 3.8 million barrels of products a day to places as far flung as Africa and the Middle East, according to the latest monthly data from the Energy Information Administration. That volume is nearly 65% above the 2010 export level, when the U.S. oil boom was still in its infancy."
The US exports 3 million barrels per day in refined products. Far and away our biggest export. This is a value added item and much better than exporting crude. This number has beep growing rapidly
What Shell did is 100% different than what is happening in ND and TX. They have zero in common. Shell was attempting to extract oil from the near surface deposits of OIL SHALE thru steam and heat. Fracking is literally cracking the rocks at great depth where the rocks are already hot and letting the oil run out. The oil shale that Shell went after has much more in common with Canadian tar sands than the shale rock being fracked in ND.
You are correct, the initial depletion rates are very steep yet at today's prices good locations reach payout in 1 to 2 years. Spacing in ND is moving from 3 wells on 1240 acres to as many as 32. Drilling and completion costs have dropped by 30% and more
I like you but you have got this very wrong. Shale "gas" development has slowed in a big way due to the low cost of gas. Shale oil and NG liquids wells do pay off and often very quickly. Even the best of the shale oil wells are producing gas as a by product and it is being sold to market and holding down the price of gas. The Oil produced however is very profitable in many locations There are 10 to 20 years or more of very profitable shale "oil" drilling locations left and technology changes will certainly extend that. The less profitable areas are getting one well to hold by production waiting for an oil price rise.
As for Natural Gas the world price is 3 to 4 times what we pay in the USA. That cheap NG can be exported at a huge profit but is also a cheap feedstock for the chemical companies.
You need to separate shale oil from shale gas and then understand what the payback time is on these wells. The good locations run around 18 months on payout. There are decades of good locations left to drill.
Activity remains positive for Walker county
Lets not forget, gasoline gets exported to the highest bidder. Some may think that's worng. Personally I look at all the jobs and investment supported by the oil and gas industry and says YAHOO, job well done
That should help to firm up oil prices
You don't realize that a professor doing research at either a private or public university is almost always doing so on a government grant. Learn the facts. The government controls the purse strings and the current administration supports global warming so any research money doled, and it is doled out in the BILLIONS, will be to support the contention that global warming existing. The facts be damned
Thanks for the post, good input. One thing that needs to be watched is that Bakken tends to be more loosely tied to Brent now than WTI as it must compete with Brent on the rail shipments to the east coast. The Chicago crack spreads are based on WTI and in Northern Tiers case don't tell the whole story.
Bakken needs to be about $17 under Brent to cover the transport costs to the east coast. That is causing the spread with WTI to widen
I picked up some shares of ALON, (ALDW) yesterday. Also looking to get back into Northern Tier. Both those guys will benefit big from falling oil prices i believe.
So giving billions in government grants only to scientist that support global warming is not purchasing their opinion. NO SUPPORT NO GRANT.