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Same. We work our own ranch and the family has gathered rights here and there since the 1940s. The rights accumulation side is interesting. I just bought a fair bit of production in Reagan country from a Houston Co. that is circling the drain. There is money to be made.
China is the big oil burner of the planet now. We are still big burners though.
If we were to "quit" oil that would be a very painful switch. I assume you mean more heavy handed, punitive government regulations and standards and not the current course we are on.
You follow that actually IT IS the "heavy hand" of .gov / .mil that keeps on the Oil = Death path we are on?
The US Military is the Biggest Oil Burning Operation in the World.
US, left to US, would be drifting towards banning and being done with Oil and Internal Combustion Engines sooner. The EPA is fighting California to try to stop California from Clean Air.
Really the "switch" only requires buying less and less ICEs every year, and when new are required using Electric Motors, instead. Really simple, painless, and saves money from the first day.
Oil and gas will be needed for a long time. Everything the US has been doing points to that, including jawboning that the age of oil will soon be gone. Companies want to take over the oil reserves in the ME, Africa, and the Arctic. Producing uneconomic oil and gas to flood the market and force foreign producers to find partners or new owners in the form of US and European companies. Wars, terrorism, and populist revolts in those regions have the intention of forcing the governments to sell off rights to their oil and gas foreign developers. This recession has probably bought shale a couple of years, shaking out weak hands and driving down their costs. The wells will be acquired for pennies so that their breakevens will drop as they did in 2016.
What if we just nationalize our domestic oil industry/production like the House of Saud did in that hellhole?
Will that make a difference? I dont get how something in so high demand, cannot not make someone out there a profit.
I've read in several places that shale oil costs around $40-$60 a barrel to produce. From the beginning of 2018 up until this pandemic it has averaged in the mid-$60s. So, most of these guys were making a profit, some more than others. Prices crashed with this pandemic but have since recovered to about $40. This is weeding out the weaker players but it is hardly the end of the industry. At some point prices will go back up - they always do.
I've read in several places that shale oil costs around $40-$60 a barrel to produce. From the beginning of 2018 up until this pandemic it has averaged in the mid-$60s. So, most of these guys were making a profit, some more than others. Prices crashed with this pandemic but have since recovered to about $40. This is weeding out the weaker players but it is hardly the end of the industry. At some point prices will go back up - they always do.
Stop looking at things in terms of dollars and start looking at the EROEI. A 5 to 1 energy return on energy invested is not sustainable for an energy source to run all the things that we run, no matter what the price oil is. Oil could be $1M a barrel and it still wouldn't make shale oil a viable long term business model.
The techno-industrial system needs an EROEI of something like 30 to 1 at minimum to comfortably run its systems. 5 to 1 is pitiful and simply won't cut it.
What if we just nationalize our domestic oil industry/production like the House of Saud did in that hellhole?
Will that make a difference? I dont get how something in so high demand, cannot not make someone out there a profit.
Even with high demand, too much supply drops prices below the point where some production can be profitable.
Quote:
Originally Posted by Philip T
I understand that is complete nonsense.
At this point everything that Oil can do or ever did can now be done Cheaper, Faster, Cleaner and Better by something else.
US is just sticking with Oil out of being Stupid and Stubborn. Bad Habits, as it were.
What use do you imagine that Oil cannot be replaced in?
Heavy gear oil, asphalt, Diesel fuel, heavy farm tractors, locomotives in areas where it's not economic to run electrical lines
Quote:
Originally Posted by Philip T
You follow that actually IT IS the "heavy hand" of .gov / .mil that keeps on the Oil = Death path we are on?
The US Military is the Biggest Oil Burning Operation in the World.
US, left to US, would be drifting towards banning and being done with Oil and Internal Combustion Engines sooner. The EPA is fighting California to try to stop California from Clean Air.
Really the "switch" only requires buying less and less ICEs every year, and when new are required using Electric Motors, instead. Really simple, painless, and saves money from the first day.
There is nowhere near enough capacity to build enough electric vehicles to replace ICE vehicles. There is also the problem of having enough electrical generation capacity to recharge all of the batteries.
Quote:
Originally Posted by Northrick
I've read in several places that shale oil costs around $40-$60 a barrel to produce. From the beginning of 2018 up until this pandemic it has averaged in the mid-$60s. So, most of these guys were making a profit, some more than others. Prices crashed with this pandemic but have since recovered to about $40. This is weeding out the weaker players but it is hardly the end of the industry. At some point prices will go back up - they always do.
Very few companies make money in shale. The rest of them are playing a game of musical wells where the ones standing when the music ends go bankrupt. The only smaller companies making money in shale are those that sold their interests for big money, like GeoSourhtern and Petrohawk, and EOG.
You follow that actually IT IS the "heavy hand" of .gov / .mil that keeps on the Oil = Death path we are on?
The US Military is the Biggest Oil Burning Operation in the World.
It is and the difference between Abrams tanks and actual horse cavalry is vast.
Could we have transitioned away from "fossil fuels" sooner, sure.
Quote:
US, left to US, would be drifting towards banning and being done with Oil and Internal Combustion Engines sooner. The EPA is fighting California to try to stop California from Clean Air.
Really the "switch" only requires buying less and less ICEs every year, and when new are required using Electric Motors, instead. Really simple, painless, and saves money from the first day.
It will be gradual but in the meantime we will need fuel.
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