Article

2007-10-19 Home Front Economy

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Steve White 2007-10-19 00:00|| || Front Page|| [1 views ] Top

#1 So why is it that my cousin (north of Billings where they have 3 refineries) can't get more that $20/bbl for her oil?

Posted by 3dc 2007-10-19 00:48|| 2007-10-19 00:48|| Front Page Top

#2 So why is it that my cousin (north of Billings where they have 3 refineries) can't get more that $20/bbl for her oil?

At that price she could hire it hauled out of state on her own. We get $9-ish under the posting here for tarry heavy stuff that's full of sediments.

Posted by AzCat 2007-10-19 05:14|| 2007-10-19 05:14|| Front Page Top

#3 3dc,
Your cousin may only be getting $20 because the oil was contracted at that price under some previous 'futures' contract. Or the operator of the wells and the buyer of the oil may be in collusion and 'rigging' the price to their mutual benefit and your cousin's loss - courts have found in the past that 'reasonable and normal' practices which caused even pretty small price disparities in situations like that were illegal, and they fined the oil companies big bucks for it.
Or the wells may be extremely expensive to operate, and $20 is the appropriate 'net after expenses' - this would be the case with very low rate wells (on the order of one barrel per day) with lots of associated contaminants (like H2S or CO2.)

Posted by Glenmore">Glenmore 2007-10-19 07:12|| 2007-10-19 07:12|| Front Page Top

#4 The high oil price has ore to do with the falling dollar than anything else. It's Ben's 0.5% cut you want to thank for this.

Posted by Bright Pebbles 2007-10-19 11:32|| 2007-10-19 11:32|| Front Page Top

23:44 Kirk
23:31 Zenster
23:29 OldSpook
23:28 phil_b
23:22 phil_b
23:21 Icerigger
23:21 OldSpook
23:19 OldSpook
23:19 Frank G
23:17 Grandpa Simpson
23:10 OldSpook
23:09 Barbara Skolaut
23:08 Redneck Jim
23:08 Frank G
22:59 SteveS
22:54 SteveS
22:52 lotp
22:49 lotp
22:34 SteveS
22:16 Red Dawg
22:16 JosephMendiola
22:11 JosephMendiola
22:08 Zenster
22:07 JosephMendiola