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re: Oil prices expected to drop? "Expect $50 oil, but not $2 gas"
Posted on 7/15/13 at 10:40 am to AUtigerNOLA
Posted on 7/15/13 at 10:40 am to AUtigerNOLA
FWIW I read in the dallas paper that Chevron is building an entirely new tower in houston, so they clearly don't forecast any drop. I know exxon just built a giant new campus there too.
I don't see any driver to push oil to $50 a barrel but I would certainly love it.Any tension seems to drive the price up.
I don't see any driver to push oil to $50 a barrel but I would certainly love it.Any tension seems to drive the price up.
This post was edited on 7/15/13 at 10:41 am
3
Posted on 7/15/13 at 10:43 am to ThaBigFella
Shell is also building/upgrading towers at their Woodcreek location.
Posted on 7/15/13 at 10:44 am to ThaBigFella
Not speaking for chevron but EMs consolidation to a new campus was about cost savings. They are exiting numerous buildings around Houston, Katy, and Fairfax.
Posted on 7/15/13 at 10:48 am to AUtigerNOLA
quote:
It got below $90 in April of this year.
Meant to put $80 in reference to the article. Too late to edit though.
Posted on 7/15/13 at 10:49 am to C
It's cheaper to engineer in Houston than anywhere in Europe so that's probably driving some if shells expansion. Also a lot of gulf water developments. A lot of higher development costs are being driven by increased demand from smaller players who can get financing at higher oil costs. If that price goes down, they won't get financing and development costs will drop. Contractors gotta pay the bills for that expensive equipment...
Posted on 7/15/13 at 10:53 am to C
quote:
Not speaking for chevron but EMs consolidation to a new campus was about cost savings. They are exiting numerous buildings around Houston, Katy, and Fairfax.
Exxon had a big headquarter at Greenspoint mall in houston , easily one of the worst neighborhoods in houston. Im sure it was an ok area when it was built bc there was a very nice hotel next door but the mall was the worst ive ever seen when i went to visit a friend who worked there. They had to move, no way employees liked that area.
Posted on 7/15/13 at 10:56 am to ThaBigFella
I work in greenspoint so yeah. But EM leases most of those buildings. EM has about 40 offices around the Houston area. Only a handful are actually owned and most have already been sold in preparation for the move. Greenspoint will be one of the last offices they move out of.
Posted on 7/15/13 at 11:18 am to ThaBigFella
quote:
What do you mean? $2.92/gallon - cost $.18/gallon - profit $.39/gallon - tax
No I get that, but how much of your purchase price is tax. In other words, what does Exxon pay in tax per gallon, thus driving your purchase price up, thus driving your customer's purchase price up?
Posted on 7/15/13 at 11:19 am to ThaBigFella
quote:
Exxon had a big headquarter at Greenspoint mall in houston , easily one of the worst neighborhoods in houston. Im sure it was an ok area when it was built bc there was a very nice hotel next door but the mall was the worst ive ever seen when i went to visit a friend who worked there. They had to move, no way employees liked that area.
We used to call it Knifepoint when we were there. I'm sure it will eventually get redeveloped into office space after they level that mall.
Exxon is moving everyone into the woodlands area in a large campus (similar to the FedEx campus in Memphis). It's a costs savings move though...not an expansion.
This post was edited on 7/15/13 at 11:26 am
Posted on 7/15/13 at 11:29 am to dewster
I work in the industry and have been expecting $50-60/bbl at some point. With a good bit of variable pay tied to oil and gas revenues, I have been enjoying the ride but have not been planning for it to continue indefinitely.
On a simplistic basis, if there is truly this limitless amount of oil to be developed in domestic shales, it seems like the price should at some point converge to the marginal development cost.
But I'm not expert by any means, so who knows.
On a simplistic basis, if there is truly this limitless amount of oil to be developed in domestic shales, it seems like the price should at some point converge to the marginal development cost.
But I'm not expert by any means, so who knows.
Posted on 7/15/13 at 1:18 pm to Vols&Shaft83
quote:
Isn't like 55% of the cost of a gallon of gas excise tax?
epic fail
but this should be what you are looking for as far as breakdown
LINK
quote:
No I get that, but how much of your purchase price is tax. In other words, what does Exxon pay in tax per gallon, thus driving your purchase price up, thus driving your customer's purchase price up?
Exxon's cost are baked into the cost of the barrel of oil, it varies state but it's not close to 55% I can promise you that
This post was edited on 7/15/13 at 1:23 pm
Posted on 7/15/13 at 1:28 pm to whodatigahbait
It depends on what you mean by tax. If you including purchasing the lease rights and other govt fees then Exxon spent over $100B going directly to a govt out of the $500B that was spent. I have no clue what the actual break down is on a per barrel basis as some of this is for refining and they refine more than they produce.
Posted on 7/15/13 at 1:38 pm to whodatigahbait
quote:
epic fail but this should be what you are looking for as far as breakdown LINK
Was the Epic fail necessary? Thanks for the link though.
Posted on 7/15/13 at 5:42 pm to TigerDog83
quote:
It's hard to see where massive amount of new supplies can come from with $50 a barrel oil. All the tight oil, shale oil, deepwater oil, and oil sands projects require higher oil prices to make them economical. With the middle east supplies hinging on the ability of Saudi Arabia to produce higher quantities it looks like cheap oil is becoming harder and harder to find. Even the Saudis are being forced to run much higher rig counts and are looking at lower gravity more expensive crudes to increase production.
Exactly...prices crater to $50 and the Eagle Ford, Bakken, Permian Basin and the oil sands go off line. The Gulf CEO is a moron or there is something missing from quotes/questions?
Only way you get below $50 is if there is a new super giant conventional field uncorked somewhere that floods the market....guess what, ain't happening any time soon.
Posted on 7/15/13 at 5:44 pm to Bayou Tiger
quote:
On a simplistic basis, if there is truly this limitless amount of oil to be developed in domestic shales, it seems like the price should at some point converge to the marginal development cost.
Sure if the drilling/production costs go way, way down due to tech advances then you could get sustained lower pricing.
Posted on 7/15/13 at 6:38 pm to cwill
Who remembers $12/barrel Texas Sweet Crude? Or maybe it was Louisiana sweet... been a long time.
Posted on 7/15/13 at 7:46 pm to Meauxjeaux
1998 was the last time....possibly a good example of market inefficiency or a flaw in the free market as the price was completely detached from reality.
Posted on 7/15/13 at 8:10 pm to Meauxjeaux
You kind of dated yourself on that one. $12/bbl had to have been 30 years ago.
Posted on 7/15/13 at 8:45 pm to dewster
Heh. Probably 1982-1986, somewhere in there.
Used to read the La Sweet and West Texas Intermediate prices in the TP every day for some reason.
Just remembered which one was which.
Good times.
Well, not for the La. economy, but I did my part to stimulate it at local bars. Doh!
Used to read the La Sweet and West Texas Intermediate prices in the TP every day for some reason.
Just remembered which one was which.
Good times.
Well, not for the La. economy, but I did my part to stimulate it at local bars. Doh!
Posted on 7/15/13 at 9:02 pm to Meauxjeaux
82-85 you would have been looking at some great pricing if you were in the oil biz...it wasn't until 86 that it crashed and it didn't go down to $12....
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