A while ago I spent some time googling "supply driven" and "demand driven". They do not seem to be defined terms or concepts in economics. So maybe the people who toss around these terms are not so smart.shallow sand wrote:I realize there is a big debate on whether crude oil price crash is supply or demand driven. I am not smart enough to know the correct answer.
You could ask me the same questions about how I determine how much they "have to" charge me at the gas pump.ROCKMAN wrote:Shallow - Here's some practical info you can share with our merry band here. You sell oil very month so how do you determine how much your buyers have to pay you per bbl? Is it based upon the profit margin you require? Or is it based upon the cost the shale players say it takes them to break even? Or do you make an independent calculation of what it must cost the shale players to break even? Or do you check what Saudi Arabia is charging?
You're one of the very few here that actually sells crude oil so I'm sure everyone would really like to know how you calculate the price of oil that you require the refiners to pay you.
We're waiting...
Marie Cusick / StateImpact Pennsylvania Jim Barrett stands next to a wellpad on his farm in Bradford County. He says Chesapeake Energy, which drilled four natural gas wells on his land, is cheating him out of royalty money. When natural gas companies approached Charlie Clark and Jim Barrett about the minerals under their farms, the northern Pennsylvania landowners in neighboring counties both decided to let them drill. They hoped — like so many landowners — to bring in some extra cash. For Clark, the decision has paid off. But Barrett says he feels cheated, and is now suing his gas company. That disparity in how royalties are paid spans the Marcellus Shale, and it’s popping up in other oil- and gas-rich regions across the United States. It stems from a complex web of laws, court rulings and legal jargon that determines how money is distributed
Oilfield service providers are upping their prices, the latest Dallas Fed Energy Survey has found, confirming what producers began to complain about last year when oil prices started recovering. The survey found the index of input costs for oilfield services jumped from 46.8 from 30.9 this quarter from last. The index for oilfield service prices was also higher in Q1 2018, at 27.9 from 22.6. Further strengthening the view of an industry in recovery, the survey also found that the index for utilization of oilfield service equipment was higher this quarter, at 40.4. That’s up 11 points from the reading for the last quarter of 2018, the Dallas Fed noted. Higher oilfield services prices began pressuring producers’ margins soon after the industry officially swung into recovery and growth mode. It was only to be expected because the services sector suffered a harder blow from the
While a rising water cut isn’t a surprise to the industry as it is a natural progression of an aging oil well or field, the use of Larger Frac Stage wells should be a WAKE-UP CALL to investors. Why? Because Larger Frac Stage wells consume a great deal more water and sand to produce more oil initially, but the decline rates are even more severe than regular shale wells.
Users browsing this forum: No registered users and 166 guests