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when it hits 5 dollars. that is what i did last time.
high risk however, cars like to run over old people on bikes, its part of our pension management system here, LOL.
I doubt that the price of gas will ever get to $10 a gallon. Here is why: We currently purchase our oil from off shore because the cost to get the fuel out of our ground. At some point the cost to produce it here will be off set when the price hits a certain level.
Why is this certainly a good point, it takes time to get wells up to production. Prices could spike to the 10 dollar level and begin to tapper off after 6 months are the domestic wells start to come back online. Most of these unused wells are caped or the pump connected to them are rusted and non-operational. I seriously doubt them do maintenance on them on the off chance they will need them on day in the future.
Last edited by TechGromit; 03-08-2012 at 01:02 PM..
Why is this certainly a good point, it takes time to get wells up to production. Prices could spike to the 10 dollar level and begin to tapper off after 6 months are the domestic wells start to come back online. Most of these unused wells are caps or the pump connected to them are rusted and non-operational. I seriously doubt them do maintenance on them on the fall chance they will need them on day in the future.
Come on over to my part of the world where wells are capped and then reoppened as the price per a barrel goes up or down. The city of Taft California is a boom town when prices go up. When they go down the oil companies shut down production. Many areas in Kern County California work in a similar fashion. I worked in Taft in 1984 and 1985. I was hired off the street and had no knowledge of working on a rig. The old guys told me to save my money as the business had its ups and downs. The younger guys bought toys during that time. By the end of 1985 the industry had changed and we were buying more oil and closing down fields. The oil is still there sitting in the ground. The problem is the cost to get it out of the ground. In Saudi Arabia they have reserves that flow out of the ground. They have a low production cost. It can cost between $20 and $30 a barrel in Saudi to produce and they sell it to us for $80 or more. Here in the USA it can cost us $40, $50, or $60 depending on the type of reserve that we are talking about. When you can sell that oil for $100 a barrel then it makes sence to drill or tap into current reserves. The problem occurs when OPEC doesn't have the US purchasing the oil. When that happens they reduce the price and we start buying from them again.
If fuel were to get so expensive ,or worse yet be unavailable, getting to work would be the least of your worries. Food supplies, your job ,medical help, hell the whole infrastructure we all take for granted would be totally collapsed and non-functional. YOU WOULDN'T HAVE A JOB TO GO TO!!
Come on over to my part of the world where wells are capped and then reoppened as the price per a barrel goes up or down.
So you being in the industry, how long does it take to get wells back into production that are capped? I'm guessing at least several weeks, perhaps a month per well. Multiply that by hundreds of wells, it could take some time to get them all up to speed.
Last edited by SOON2BNSURPRISE; 03-08-2012 at 03:23 PM..
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