Link here.
Simply for the "fun of it."
I maintain the link on the "Data Links" page.
A big "thank you" to Greg for bringing this link to my attention.
In the first comment below, Greg expands on some of his thoughts. Note his reference to the Saudi / Libyan issue. Greg and I agree on the "truth" regarding Saudi's ability to make up the Libyan shortfall. You can see one of my many posts on that situation here, but for all such posts, go to the bottom of this blog, and click on the "SaudiPerspective" tag.
Always grad to help. I recall the hospital death watch for my mother who died in May, 2004. Mom was stubborn even in death, it took here more than a week to die in the hospital after a major medical event.
ReplyDeleteI recall that was also the last time I saw gasoline at the pump under $2 per gallon. I don't mean to sound crass but family members had a lot of time to talk at the hospital that week and future gasoline prices was part of the "small talk". We pretty much all agreed that this was the end of $2 gasoline at the pump.
I could get better charts but crude oil was then approaching $40 per barrel. Mid-2004 was pretty close to the start of shale "fracking" and the "Bakken boom".
If you want to discuss the Bakken an easy way for people to comprehend it is with crude oil prices and gasoline retail prices. The latter is a bit more complicated because of differing state taxes.
Basically using current gasoline tax rates say that the Bakken is economically viable at $2.00 to $2.50 per gallon. (that is $40 to $50 per barrel Texas benchmark light sweet crude).
I haven't talked to anyone thinks we will see these prices again. For "icing on the cake" the insurrection in Libya reduced the "light sweet crude" to Europe and Saudi Arabia did not increase production of this "primo" crude indicating that Saudi Arabia and OPEC in general can only increase production of "crap crude" which may refineries, especially in Europe can't process.
The Bakken is primo crude, light, sweet.
Great note. Your comments re: Saudi, Libya, Bakken, etc., echo almost exactly what I posted about this whole situation some weeks ago.
ReplyDeleteI used a bit of hyperbole when I talked about the situation, but I think we are pretty close to the "truth" when it comes to Saudi heavy oil and European refineries.