re: Oil back below $40

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Huh? Are you suggesting there is some validity to that statement?

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CptRusty

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I see your cool chart/graph and will match it with another! HA!

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Gas prices have little to do with oil prices

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I love when people say stupid shite trying to sound "in the know"

It's all about what Illuminati decides it will be. If you don't realize it, you are part of the globalist problem.

Wake up people.

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What the hell does that prove? The majority of the "cost" of gasoline is derived from the cost of crude oil

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Lol I know.... at this point, I'm just fricking with you...

Has anyone mentioned that all us non O&G folks need to tighten our belts and pay $5 a gallon so that Operators can come on the OT and brag about their lifestyle?

Corporate is on the ball.

An interesting narrative that OPEC came up with in the early 2000's was the price band mechanism. It essentially was a target price that would discourage alternative energy investment while allowing OPEC member countries prosper. When prices increased, OPEC governments expanded their state sponsored benefits. Venezuela is a great example.

-The advances in hydraulic fracturing technology and horizontal drilling allowed for competition to OPEC’s conventional reservoirs. It allowed for fine tuning of the methods that Mitchell Energy worked on in the Barnett Shale. “Shale” and hydraulic fracturing altered the game. Increased shale exploration would likely have not occurred in absence of higher prices.

-While shale wells are not competitive with Saudi fields, there are areas that can make decent ROI even at current strip.

- Majors have been challenged on shale development because of overhead and lack of efficiency.

- Independents will be challenged with reduced number of economic locations and redeterminations.

- Private equity backed companies will be challenged because of the high cost of the dollars.

-Several people have previously discussed strategic reserves. A good book to read is “The Prize”.

-With high energy prices the green movement was further catalyzed and solar and ethanol subsidies were increased.

-From an economic standpoint, oil and gas makes up a larger portion of our economy than it did during the 90’s. It somewhat softened the blow of the great recession. That however is matter of debate.

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I'll check pricing on Leap puts and post later today. Seems to me if your speculation is close to accurate, and I have no reason to believe it isn't a logical guess, any low priced Leap would be a good way to take a speculative short without risking much capital and having a loss certain.

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Play it just like you would community banks in Iowa should corn drop to under $.50 for an extended period of time. The business loans that are bad is the train wreck, the mortgages and vehicle defaults are the cancer. JMHO

Gasoline prices are obviously related to oil prices. However there are other factors that can contribute to an increase or decrease in gasoline prices given oil prices being static. Refinery capacity is a great example.

Natural gas prices are no longer tied to oil directly. Some people confuse oil, natural gas and gasoline.

Just an obvious statement- all oils are not created equal. Certain oils will yield a higher gasoline quantity than others and can demand greater or lesser price than another oil depending on the market and refinery demand in the area. Oil sale price is not always tied to WTI in an area.