- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Why is the O&Gtard anger not directed where it should be?
Posted on 1/14/15 at 12:38 am
Posted on 1/14/15 at 12:38 am
Which is the regulations, taxes and requirements placed on the industry that make it unprofitable below $50 a barrel??
There is no reason whatsoever that American oil could not be extracted from any formation at a cost of $30/bbl or lower. Maybe even significantly lower.. low $20s.
$50/bbl oil is not the problem.
There is no reason whatsoever that American oil could not be extracted from any formation at a cost of $30/bbl or lower. Maybe even significantly lower.. low $20s.
$50/bbl oil is not the problem.
12
Posted on 1/14/15 at 12:59 am to Meauxjeaux
quote:
regulations
The same people that complain about regulations are the same people who want clean water, to save the wetlands, suing BP, milking hurricane recovery money to rebuild and are the same people who want to maintain the levees and the port where it is. All they want is everything at once.
There's no way that taxes are 40% of O&G costs, as you assert. You could almost completely eliminate the Louisiana state corporate income tax by doing away with the film and digital media subsidies, btw. As far as the Feds go, Louisiana's population is already angry at them.
Good luck getting the rest of the country to jump on board with wanting to pay more at the pump to subsidize our jobs here in Louisiana.
This post was edited on 1/14/15 at 1:45 am
Posted on 1/14/15 at 1:39 am to Meauxjeaux
People can't have it all. But our pop culture has assured that this is how it should be.
You don't want spills danger to the environment then don't cry when it cost more to extract it from the earth.
You don't want spills danger to the environment then don't cry when it cost more to extract it from the earth.
Posted on 1/14/15 at 3:44 am to Nado Jenkins83
Louisiana severance tax rate on oil is 12.5 percent. Sales taxes on services run six to seven. Some of that is offset by favorable federal tax treatment (such as intangible drilling costs rules).
But even if you dropped all taxes and regulations, I doubt remaining oil would be profitable at the levels you mention.
And it ain't $50. It's $45. Most shales don't work below $60.
And the real problem is not price. It's volatility. Are you going to put a half billion dollar behind the next US shale play knowing the Saudis can bankrupt you at will?
But even if you dropped all taxes and regulations, I doubt remaining oil would be profitable at the levels you mention.
And it ain't $50. It's $45. Most shales don't work below $60.
And the real problem is not price. It's volatility. Are you going to put a half billion dollar behind the next US shale play knowing the Saudis can bankrupt you at will?
This post was edited on 1/14/15 at 3:50 am
Posted on 1/14/15 at 4:27 am to Meauxjeaux
quote:
There is no reason whatsoever that American oil could not be extracted from any formation at a cost of $30/bbl or lower. Maybe even significantly lower.. low $20s.
I think the Saudis know better than you what the break-even point is and they're acting accordingly.
Posted on 1/14/15 at 5:03 am to Asgard Device
Taxes take 25% off top per barrel.
Posted on 1/14/15 at 5:40 am to GREENHEAD22
The saudis are hanging on by a thread. Ghawar reserves are way overstated. House of Saud goes down this year? Can you imagine. Karma is a bitch and they have it coming.
Posted on 1/14/15 at 5:54 am to Meauxjeaux
You forgot the Saudis
Posted on 1/14/15 at 5:54 am to Meauxjeaux
I remember when I worked production offshore how tickled to death everyone was when oil was over 30. This was in 2003. Wtf.
Wasn't Exxon breaking profit records every year with 20-30 oil 10 - 15 years ago? wtf happened?..........I'll tell you. The fed has devalued the dollar more in the past 10 years than in the history of the dollar. Oh and the Saudi king doesn't pay taxes on the money he makes unlike every business in this country.
Wasn't Exxon breaking profit records every year with 20-30 oil 10 - 15 years ago? wtf happened?..........I'll tell you. The fed has devalued the dollar more in the past 10 years than in the history of the dollar. Oh and the Saudi king doesn't pay taxes on the money he makes unlike every business in this country.
Posted on 1/14/15 at 6:01 am to Placebeaux
Ding ding.
The dollar is almost as useless on the world market as toilet paper.
The dollar is almost as useless on the world market as toilet paper.
Posted on 1/14/15 at 6:02 am to Placebeaux
What happened is the cost of replacing reserves. The low fruit has been picked. Each new barrel costs more to produce than the one before it.
Say you sell beer. You got 100 cans on hand, and you paid a buck each. You sell em for two, and you make money.
But when you go to restock, you have to pay 3 a can to replace inventory. You will now lose money selling at the old price.
Say you sell beer. You got 100 cans on hand, and you paid a buck each. You sell em for two, and you make money.
But when you go to restock, you have to pay 3 a can to replace inventory. You will now lose money selling at the old price.
Posted on 1/14/15 at 6:05 am to Meauxjeaux
quote:
There is no reason whatsoever that American oil could not be extracted from any formation at a cost of $30/bbl or lower. Maybe even significantly lower.. low $20s.
Gulf of Mexico deep water and some high pressure-high temp reservoirs laugh at your assumption.
Posted on 1/14/15 at 6:13 am to lsuoilengr
quote:
The saudis are hanging on by a thread. Ghawar reserves are way overstated. House of Saud goes down this year? Can you imagine. Karma is a bitch and they have it coming.
Ummmm......No.
Posted on 1/14/15 at 6:14 am to Layabout
Break even point is constantly moving and varies from well to well, formation to formation, offshore to land, deep water to shelf. Break even point today isn't the same as 6 months ago cause services are cheaper.
Posted on 1/14/15 at 6:20 am to TigerHam85
quote:
The dollar is almost as useless on the world market as toilet paper.
I didn't get a chance to read the "oil will never return to $100" thread, but heres my $.02.
1) "NEVER" is a pretty long time which leads one to conclude this is false. On a timeline long enough, especially oil, never and forever don't happen. Boom/bust cycles and such.
2) $100 oil is very possible just buy the way the U.S. has devalued its dollar through inflation. So much so that it may one day not even be traded in U.S. dollars.
Posted on 1/14/15 at 6:28 am to Placebeaux
Here's the problem with overregulation: if you relax them, the O&G industry would do nothing to protect the environment so you get overregulation.
Posted on 1/14/15 at 6:33 am to P0SEIDON
quote:
So much so that it may one day not even be traded in U.S. dollars.
If (and maybe when) that happens, the sun will completely set on the American empire, but wars be fought and lives will be lost before that happens.
Posted on 1/14/15 at 6:40 am to P0SEIDON
quote:
So much so that it may one day not even be traded in U.S. dollars.
This will be the spark that starts ww3. Sad part is the fed, who prints the dollar, has orchestrated this collapse of the dollar because war is the biggest money maker in the history of money. Always has been and always will be under central banking.
Posted on 1/14/15 at 6:45 am to Meauxjeaux
Because before the market was flooded by OPEC, specifically Saudi and Kuwait, the oil and gas companies were growing at a massive rate even with these regulations. The regulations are not the issue that caused the O&G producers to fret.
Posted on 1/14/15 at 6:50 am to Placebeaux
frick Bretton Woods! Amiright!?!?
This post was edited on 1/14/15 at 6:51 am
Page 1 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News