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The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out
Less than two weeks ago we warned that based on the current oil production trend, the US may run out of storage for crude as soon as June.
This is what we said back in early March when the BTFDers were hoping WTI in the low $40s would never again be seen:
Come June, when all available on-land storage is exhausted, each incremental barrel will have to be dumped on the market forcing prices lower and inflicting further pain on the entire US shale complex (just as Q1 results are released which will invariably show huge writedowns as companies will no longer be able to hide behind the SEC-mandated accounting trick that made Q4 results appear respectable). Here's Soc Gen: "...oil markets can be impatient and prices could drop considerably lower. As we have written previously, we are currently more concerned about downside risk than upside risk."
Since then, as expected, crude tumbled to new post-Lehman lows, confirming the global deflationary wave is raging (for more details please see China), and WTI only posted a rebound on quad-witching Friday as another algo-driven stop hunt spooked all those who were short the energy complex.
The problem is that despite the latest "dead oil bounce" we have since had to revise our forecast for full US oil storage, and pulled forward the date when this will happen in the aftermath of the latest API inventory data.
Recall that earlier this week API reported, and EIA later confirmed, that for the 10th week in a row there was a "massive 10.5 million barrels (far bigger than the 3.1 million barrel expectation) and a 3 million barrel build at Cushing. If this holds for DOE data tomorrow (and worryingly API has tended to underestimate the build in recent weeks) it will be the biggest weekly build since 2001."
The DOE indeed confirmed all of this:
It also means that at the current rate of record oil production, storage will be exhausted in under two months, some time in mid-May. At that point, with no more storage to buffer the record oil production, the open market dumping begins and prices of WTI will crater as every barrel will have to be sold at any clearing price, since the producers will have no other choice than to, literally, dump the oil.
In other words, a perfect storm is shaping up for oil some time in late May, early June.
And then we learned something even more startling.
As the Platts oil blog reports, even as oil prices continue to fall amid flat demand and near-record supply, "North Dakota is likely to see a “big surge” in production this June, potentially besting another supply record even if prices continue to crater, according to Lynn Helms, director of the state’s Department of Mineral Resources."
What make things worse is that this time the production "surge" will have nothing to do with game theory, or beggaring thy oil producing neighbor in hopes that the other, more levered guy goes bankrupt first.
This surge will be largely propelled by two factors: a state-mandated time limit on drilling and the expected trigger of a major oil tax incentive, Helms said.
Here is how Bakken production has looked like in recent months:
Helms, the state’s top oil and gas official, reported last week that North Dakota oil production fell about 3%, or about 37,000 b/d, to 1.190 million b/d from December’s all-time high of 1.227 million b/d. The reduction was expected as sweet crude prices averaged $31.41/barrel in January, down from $40.74/b a month earlier and the statewide rig count fell by 21 to 161.
But Helms said he doesn’t expect production to tumble dramatically, even as prices continue to fall, and even though he expects the statewide rig count to “bottom out” at about 100 rigs. Production, he said, will likely remain between 1.1 million b/d to 1.2 million b/d over the next few months.
Nothing surprising.
And then this will happen: "Bakken production could suddenly skyrocket, by nearly 10%, or an additional 75,000 b/d, to 100,000 b/d in June, Helms said." This means that despite low prices and production curtailments throughout much of North America, oil production in North Dakota could actually shatter a new record this summer!
This is mainly due to a backlog of between 800 to 1,000 uncompleted wells statewide, about 125 of which need to be completed by the end of June in order to comply with state requirements to complete drilling within a year.
At the same time, operators may wait until June, when a major oil tax incentive known as the “large trigger” is expected to go into effect. The large trigger, which is aimed at boosting Bakken production at times of low crude prices, enters into force when the WTI crude price averages below $55.09/b for five consecutive months.
If that incentive is triggered, which Ryan Rauschenberger, North Dakota’s tax commissioner, said he expects will happen, the majority of wells will be exempt from a 6.5% oil extraction tax for as long as two years.
With that tax break in effect and hundreds more wells running up against one-year state deadlines, production in North Dakota could continue to surge even beyond the summer.
“We’re going to ride these waves of production increases,“ Helms said.
And that, coming just as US spare oil capacity hits its limit, is precisely what all those BTFDers who bought first junk bonds, and most recently, a desperate scramble in follow-on equity offerings by the universe of cash burning US shale companies, is precisely what they did not want to hear. Because no amount of Fed ramblings about the ever weaker US economy will offset what is about to be a veritable oil tsunami.
The time to buy asset may be when there is blood on the streets, but the moment to dump crude (and buy deep OTM puts) will be precisely when the majority of investors and algo-programming math PhDs realize that in just about two months the streets are about to become black, covered entirely in oil.
h/t Lizzy
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Bring back the big blocks!!
No! Wait! Everybody's been yelling about no more oil by 1979!
Whole bunches and bunches of them old creaky useless rusty leaking VLCC's are gonna be unmothballed with skeleton crews to sit just off shore filled to the brim with grim.
Yep. Excess tanker capacity? No more on-land storage? No problemo. It's now floating storage.
Wrong: Oil Price Faces Another 20% Drop Due To Contango Math
You are being generous. I am assuming there shall be frontrunning.
Front running indeed...
http://www.reuters.com/article/2015/01/08/us-oil-tankers-storage-idUSKBN0KH1M520150108
WTF! Take away those down arrows for NoDebt.
We will never run out of abiotic oil.
No oil storage left?
What about utilizing those dry reservoirs in California... did those enormous salt caverns under Lake Erie suddenly disappear?
You know, they're squawking here in So. Cal. about the Salton Sea - which was created by errant water diversion decades ago - drying up, since the dry lake bed would the the source of awful dust problem. That sucker - which is a complete shit-hole - would hold a truly massive quantity of oil, and that'd keep the dust down but good.
The Black Gold Sea.
Time for war, gotta increase demand somehow
Sarah Barracuda says, "Drill Baby Drill!"
Sorry jackasses and peak-oilers. It was always a $20 commodity.
I wouldn't mind striking the V12 off my bucket list so I might be able to help.
Go long Enbridge and CBI - Enbridge builds tank farms - and contracts CBI to build the tanks - and the *love* to stockpile oil, they are going to build tanks like a bastard (a lot of oil companies are going to do the same) - but the reality is the number one tank builder in the world is CBI..
Ran into a guy who runs a food bank in Houston, Texas who said number of people now seeking emergency food there up over 300%, mostly layed off oil and gas rig workers.
Now we need some destruction of the Oil Refinement Cracking Towers.
That will ensure high Unleaded Gasoline prices with a surplus of unrefined Oil.
Bring on your professional arsonists you Oil Company magnates. You will not be prosecuted. You are too big to jail.
The model works so swell in Southern California that it needs to be extended to a nation wide instituted program.
Everybody needs to be charged $3.30 per gallon.
This is also a fantastic opportunity for refinery operators to stage a STRIKE for higher wages.
Short WTI and Long Unleaded Gas.
A little bit too real for you junker???
LMAO.
Oil sucks, it should crash back into the ground.
So you are telling me that it's 2015 and we STILL use oil for a primary energy source?
In the computer industry we went from some of the first COBAL machines in the 40's to smart phones in the 00's but oil is the best answer we got?
Just like the space program has come so far since we first made it through the Van Allen radiation belts and landed on the moon?
It's a joke... don't you think we should have been a lot further along at this point considering some of the talent on this planet?
Funny how some industries don't make any progress, maybe easier to control people with computer technology and smart phones than space travel.
It is not a joke. It is evidential that we still burn Fossil Fuels.
And you can wager that the Oil Companies will destroy refineries and have the Refinery Workers Unions stage strikes.
And you can downarrow this all that you want.
But I am certain that the Oligarchs will not lose one thin dime.
Short WTI.
Long Unleaded Gas.
LMAO.
Most E&P's are not integrated, so how would low WTI and high gas prices help them?
High Unleaded Gas prices hedge against low Oil prices.
Profits are garnered at the sell side rather than the buy side,
They buy the Futures too. As the future price declines their balance sheets bleed as the futures are future inventory assets which are declining in "value" as the price slides.
They do take delivery after all..
They will manufacture a shortage if they want to produce short term profits. They have to if the want to show a profit to support stock prices.
They have used San Diego, CA many times to do this. We typically have the highest Gas Prices in the Contenental USA. This has become an standard practice.
It is a little counterintuitive but mark my words as you watch the "Black Swans" of Employee Strikes at Refineries and Refinery Fires develop..
"In the computer industry we went from some of the first COBAL machines in the 40's to smart phones in the 00's but oil is the best answer we got?"
That's the dumbest fucking analogy I've ever heard of.
Next ~ You're gonna be telling everyone that because of computing power, fats, proteins, & carbohydrates should no longer be necessary.
Keep eating those hotpockets at your desk Coppertop. The transhuman machines that you create prolly won't give a FF what you ate when they turn you into a Duracell.
COBOL in the 40s???
Original design in 1959 by USN it became a standard in 1968.
I didn't know the dates but I knew the 40s was just crap. Thank you JohninMK.
I just bought a Chevy Volt. All our in town errands are now on Electric, have had it a month
and have burned about 3 gallons of gas. If i am buying a tank every 3 months instead of every week,
I'll be happy.
Four months ago I talked about it ...
"Accidents" in oil refineries ...
hehe.
So all those roughnecks that get laid off from the shale fields are headed for Cushing to build really big barrels? Gotta love dat free market labor.
No, this is part of peak oil. As the world runs out, extracting oil becomes unprofitable. Wait for bankruptcies, then shortages.
Yep. IIRC it's called the "bumpy plateau" — as the oil becomes increasingly difficult and expensive to extract, we'll see massive volatility in prices as we vacilate between over- and under-supply, and highly leveraged oil companies go belly up. I think Colin Campbell was the guy who coined the phrase.
Sarah Barracuda was responding to the fact that we were - pardon the pun - bent over a barrel because we had so much oil of our own oil but were relying on the Middle East and other nation areas. And that also was six years ago.
There was plenty of oil then, and there is plenty of oil now. The "demand" was for oil contracts. That dimwit was only repeating what she was told like some kind of retarded parrot. The ultimate puppet candidate and a truly embarrassing event in the history of The United States.
U.S. Oil Production To Soar????
Well, Platts just pulled a BIG BONER on that call. Art Berman, who may understand the situation than Platts believes we are going to see a 600,000 barrel per day decline from Shale Oil by June. No Soaring production.
Shale Oil Production Will Fall 600,000 Barrels Per Day By June
Furthermore, the North Dakota DMR just released their JAN REPORT and the Bakken's production declined 38,000 bd in Jan. I believe FEB will be down as well. In addition, even the EIA recent March Productivity Report shows a forecast in declines in 3 of the 4 large Shale Oil Fields in April.
Those who study the EIA Productivity Reports realize they are a BIT OPTOMISTIC. So, we may see much worse declines.
Sure...the builds might continue... BUT U.S. OIL PRODUCTION IS HEADING SOUTH by JUNE.
You can take that to the BANK.
SRSrocco Report
yup
http://www.peakprosperity.com/podcast/91722/arthur-berman-why-todays-shale-era-retirement-party-oil-production
She isn't too bright, but still has a higher IQ than the affirmative action idiot we have now
She isn't too bright
That's an understatement.
Sorry, the most embarrassing moment in world history was the "placing" (not election) of Barack Mulatto Hussein Soretoro Obama as the puppet in chief.
Yes We Can. But...
Luddites are alive and high-kicking in SoCal, guided by Moonbeams. The FDA and Big Pharma will thin that herd of sheep especially with a seasoning of Monsanto GMOs sprinkled in. There are some brilliant people there but not nearly enough to elevate the average.
HAARP will chase off the smart ones looking for some swamp land awash in H2O. Good, the bridges to nowhere and swamp land have been the butt of jokes forever.
The irony is that maybe the world's largest aquifer lies under the Sahara. Hey Houston, don't stack the rigs just yet.
Wait till someone throws a match in there. That should be fun.
... and then they could trade it straight across for water -- drought problem solved! :)
This is a good idea; We can pump oil out of the ground and then store it all ... underground. It's like creating "shovel ready" jobs by hiring someone to dig a ditch, and then hiring someone else to fill the ditch back up again. It's so brilliantly Keynesian, it could only lead to a permanently high plateau.
Reading the article makes you realize how financialization, and manipulated data, distort reality.
Anyway, can’t blame Zero Hedge, and many Hedgers, because Zero Hedge is more focused on the financial aspect of this ‘Crude/Condensate’ conundrum.
I would strongly suggest you to read these, if you want to understand:
http://www.thehillsgroup.org/index.html
http://peakoilbarrel.com/texas-rrc-report-and-other-news/
As I quoted here several years ago, "The stone age did not come to an end for a lack of stones"
I'm gonna have to agree with the petroleum engineer down the block who says it may drop to $10 BUT the rebound will be brutal [maybe up to $200] after most of the rigs and wells are capped off and small drillers bankrupt/shut down due to this slump and then a rleative shortage of painful proportions will hit us.
Sounds Logical ... but when in the last 12 years have logic or fundamentals had any bearing on the market?
If the rebound is brutal, sky rocketing CPIs could be the event to finally push rates up and start the inevitable unwind of the carry trade.
My guess is the Fed and BLS will never allow the CPI to accurately reflect prices since the gubmint cannot afford the SS COLA and most likely same for penion plans that are linked to the CPI in light of almost zero returns on their portfolios the past decade. In fact, many if not most pension plans are underfunded according to recent news reports that even the MSM report.
The CPI equation will simply be 'modified' with more hedonistic tweeking and elimination of any commodity or service that rises since that's what they have been doing with just about every other Bogus stat coming out of DC.
Thus, oil and gas prices [and everything else we need like food] will soar while the CPI remains artifically low [like it has been the past decade].
Us consumes almost 20 millon bpd so total storage is a month or two? Just when driving season starts and ag diesel ramps up?
SOmeone is selling a bridge.
What part about out of storage space do you not understand? At that point, if they can't find a buyer as the crude comes out of the ground, the price is ZERO.
Lots and lots of Goldman & JP Morgan tankers to fill, no worries they will find a place for it.
"We will never run out of abiotic oil."
You can't run out of something that doesn't exist, so yeah.... that's a true statement.
Thanks for cleverly point that out about abiotic oil.
The level of human delusion and misinformation never ceases to amuse me.
fuck off escrava
Howcum no talk about abiotic coal?
Deep over the wall in left!
It's outta here!
Flaks back, hey flak been keeping up on the Global warming scam, good stuff coming out lately...
Hit over 80 degrees in North Dakota week back or so. Broke the record by 10 degrees!
Bakken shale is now below 30 bucks a barrel...at a million barrels a day.
Funny that folks call that bad news when the rest of the world is paying twice that.
You can do a lot with an economy with prices that low...especially with all paper currencies pretty much worthless anyways.
Forget storing oil...start storing refined product.
Plus you have rolling stock out that way...
to which side of the scam are you referring?
Depends on which side is a scam.. I know which side do you?
Funny how time digs things out
Flakzuki, Bitch whare ya been
I guess all that oil found on Saturn's moon Titan must also be from dinosaurs?
http://www.abc.net.au/science/articles/2008/02/14/2162556.htm
Has anybody drilled it? Till then it's just some geek's guestimation.
Ethane, Methane and a splash of propane ain't oil...
Read the article...
Hmm and at a healthy 7% annual growth rate we don't run out of oxidizer until ... 2140 , no problemo.
What? You mean O2 is being depleted? good point!
But, will we ever run out of the Rockefeller's MSM propagandists, who insist it's about to run out?
NoDebt's smart. Probably is a bond guy. We can take red arrows of insane misfortune with aplomb. Like Santelli. It's the rest of y'all fuckin' nuts.
Betcha none of you preppers got Basis Books!
I always put a face to everybody I meet here. I always imagined NoDebt to be a cross between BJ Honeycut and Dr. Johnny Fever.
Funny, I always pictured the Fonz to be the Fonz.
Philo, I had the exact same vision of NoDebt. But how you came up with the Fonz from the Fonz is just perplexes me.
Fucking Madison Avenue.
I know what to do with a Monroe Trader
Don't have a fuckin clue what you're talking about
Just curious
Mr Knuckes, is your real name Bill Griffith?
"And that, coming just as US spare oil capacity hits its limit, is precisely what all those BTFDers who bought first junk bonds,"
Let's all have us a little corporate bond crisis, BITCHEZ!
I didn't say the price wasn't going lower. I said the oil was going to get stored on ships when land-based storage started hitting capacity. They're obviously not going to stop pumping it, from all the articles I've read on here, but they will need a place to store it once they pump it out of the ground.
Unless they take up my idea of paying somebody to pump it back into the ground.
Fuck yeah! Use it for fracking! Cheaper than that imported water in glass designer bottles!
Somewhere deep in his underground volcano lair, Paul krugman just got a woody ....
THAT is visual imagery I really didn't need today....
Paul Krugman in a volcano? Okay by me. Lots of economists and bankers in volcanos? Again, okay by me. Just hope the Krug does not upset the thing. It might projectile vomit.
Assholes for Pele,
Brilliant solution, MsC.
MC,
Krugman vs the Volcano?
He has a brain cloud and isnt as funny as meg ryan.
RIPS
The devils and demons don't mind the fire, it's their home.
war uses up a lot of oil....?... hey, im just tryina find solutions
I believe Tylers point is contango wont work unless there is a BIG step down in buy price.
Bound to be a lag between price adjusting sufficiently and contango ramping up.
Iranians where already doing that
Since we have an infinite supply, maybe they should just flare it off?
When the American economic engine slows down, as it is, the affects are global and exponential. Anyone who didn't see this coming wasn't forecasting shit. Commodity producers are pumping away like crazy because it's the only way they can payoff their own sovereign debt.
think of the ass whipping the oracle of neb one mr buffet is going to get as no one wants his railroad to transport oil ..oh the humanity.
But all this is doing is delaying the inevitable....the more or longer they pump, the lower the price goes. It is all demand.
Plus, eventually, these shale plays will quickly deplete and there will be no money for reinvestment so the production will fall. The only problem is will it fall too low and then whipsaw the price?
Math strikes again...
Tyler, there is something wrong with your numbers and I believe it is with costs for storage in a VLCC. A VLCC has value in use at $70k/day when it is being utilized to transport oil from, say West Africa to the US or Saudi Arabia to the Far East. But it is gross overkill and clearly uneconomic to utilize a VLCC as simple storage over a long period of time. It would be like if you leased the most expensive condo/coop in NYC to store stuff you cleaned out of your garage but didn't want to part with!
A simple example of how playing the contango trade has worked for me:
On Friday WTI for delivery in April closed on the CME/NYMEX at $43.96/bbl (I'm using closing prices to keep this simple), and WTI for delivery in December 2015 closed at $53.35/bbl. If I bought contracts for delivery in April and simultaneously sold the same number of December contracts, I would lock in a gross profit of $9.36/bbl. Of course I would have to contract for storage and insurance on the oil for 9 months so I can honour the delivery contract. The storage has to be in Cushing, which is the standard delivery point for all regulated WTI physical futures contracts. Since every PE fund, hedge fund, investment bank, merchant bank, private client bank and grandmother has gotten into this trade, storage at Cushing has filled up, inventories have gone up considerably, and like anything else in high demand, the cost of storage has gone up since January.
I still believe there is room to trade the contango, meaning inventories will continue to build. However the window is closing because of reduced profitability. By the way, if one looks back, one will find the same conditions in early 2009, when the then-current WTI contract was in the 30-40 range and the out month futures contracts were in the 60s.
As a final thought, these trades are always leveraged up using cheap interest rates (thank you Janet), so one can purchase more contracts than your equity investment would indicate.
A few additional comments on this doomsday article:
1. The increase in production is coming from the Bakken. Most Bakken oil goes to the major mid-continent refineries, such as those near Chicago, Wood River (St. Louis), and east to Ohio (Marathon, Sohio) and others. A few weeks ago an oil tank car train blew up near Galena IL. It was carrying Bakken crude to somewhere in the East. Remember that without the Keystone XL, there isn't very much capacity to transport Bakken oil down to Cushing. (Maybe someone should ask Warren Buffett about that since Berkshire owns BNSF railroad, which is making a TON of money transporting oil via rail.)
2. It is a fallacy that the storage owners in Cushing (mostly major oil companies) will allow available capacity to go to zero. Contango traders leased a lot of capacity, but oil producers are the storage owners' long-term customers, and will continue to be long after the traders have closed out their positions and their oil storage leases have expired. It's a closely knit group of people that deal with each other every day.. They are competitors but won't screw each other.
3. In the last few years, at least 1.6 million barrels a day of pipeline capacity has been constructed/converted to move oil from Cushing to the Gulf Coast: the Seaway Pipeline was reversed (400,000 bd), and then twinned (another 400,000 bd) and the Keystone XL Phase II pipeline was built from Cushing to the Gulf Coast (800,000 bd). If storage was projected to be tight, the oil would just be sent to the Gulf Coast refining centers and just back out some more imported oil, to the consternation of some foreign exporters.
4. Another 75,000 or 100,000 bd from the Bakken, in the grand scheme of the size and complexity of the US oil industry, is just a rounding error.
While I believe oil prices will muddle along for maybe another year, I don't believe in the doomsday scenario.
Not to forget that Cactus is opening in April and will take 250,000 bbl / day to CC instead of Cushing and by October that will be 300kbbl/day.
Excellent post Zodiac! Thanks! +1
Ugh - forget it. Math is too hard.
Ugh - forget it. Math is too hard.
while indeed, everything is fucked up, along with the market signals that help us determine when everything is fucked up, reports on world production and world use are still a little relevant.
http://www.opec.org/opec_web/static_files_project/media/downloads/publications/MOMR_February_2015.pdf
For the very reason it is oil, so many games, so many wars, so many flase flags and so many "enemies" are tied up with the commodity that is so much more than a commodity. This makes it very very hard to make sense of it all...except that for some weird reason all our (newly labelled) bad guys live where this stuff lives...and for same stange reason it keeps getting harder and harder (read more expensive) to get this stuff and for some weird reason the rest of the word (mostly non westerners) keeps growing and using more of it. Actions sometimes do speak louder than words...even words on a chart
I certainly can't figure out whose forward view is spot on: Gail the Actuary vs oh... shit lots of versions, but the physical realities remain and we have a very very long way to go before we come up with substitutes of any meanigful weight....and return. And if history is any teacher, I'm sure we're going about it in a very stupid, criminal and self defeating manner
VLCC daily rate is too high.
Assuming half is always full anyway, that would only give you another 30 days.
Where do you plan on anchoring them during the summer storm season ?
Oh, always with the negative waves, Moriarty, always with the negative waves. So we fill up Rosie O'Donell's swimming pool and tell her it's for the chitlins.
LOL, you should do stand up. Always enjoy your humor, sarcasam and wit, thanks
The US SPR should have some space in its caverns to take some very low-priced crude off line, shouldn't it? That might prove helpful at the crisis time.
floating storage has been in high gear since the beginning of the year.
http://www.harperpetersen.com/harpex/harpexVP.do
Its not finding the storage...its the offloading. If you dont already have your offloading schedualed...it aint going to happen. So if the price moves, suddenly everyone is going to try to get to the few offload points and finds, so sorry you arent on the schedule. This is when the hilarity begins.
Buyers buyers has anyone got a buyer. Lots of holding was the wrong plan.
They should have let wti hit 20.00 sold all this capacity and the price would no be a stable 60.00
Let the games go on.
U.S. Oil Production To Soar????
Well, Platts just pulled a BIG BONER on that call. Art Berman, who may understand the situation than Platts believes we are going to see a 600,000 barrel per day decline from Shale Oil by June. No Soaring production.
Shale Oil Production Will Fall 600,000 Barrels Per Day By June
Furthermore, the North Dakota DMR just released their JAN REPORT and the Bakken's production declined 38,000 bd in Jan. I believe FEB will be down as well. In addition, even the EIA recent March Productivity Report shows a forecast in declines in 3 of the 4 large Shale Oil Fields in April.
Those who study the EIA Productivity Reports realize they are a BIT OPTOMISTIC. So, we may see much worse declines.
Sure...the builds might continue... BUT U.S. OIL PRODUCTION IS HEADING SOUTH by JUNE.
You can take that to the BANK.
SRSrocco Report
My operator has put half size chokes on his wells due to an inability to get the oil to market. Not enough trucks available to regularly service all the production from the new wells. This is in the Wolfcamp. Infrastracture limits production more than price in this kind of wild growth scenario we have experienced.
Tax loophole knocks a hole in this argument.
As they say, "There's no substitute for cubic inches."
Size does matter after all?
well now the Substitute is Wattage.
Might be able to afford a trip or two in my '75 New Yorker coupe* this summer, after all.
*
Gets better mileage than most would assume, believe it or not, and even has the 'gas miser' indicator, where the turn signal indicator on the left fender lights up when I mash the pedal.
~Bring back the big blocks!!~
Challenger Hellcat production suspendedAnother part of the perfect storm:
http://fox43.com/2015/03/17/challenger-hellcat-production-suspended/
Apparently too much demand...
i will say it again...god pity the poor folks (Airlines, transport companies) that bought 6 month futures at 80 bucks...ouy vey..
So... the HAARP induced winter from hell in the Northeast didn't run through enough fuel oil? God knows the price didn't drop much compared to crude.
We stored some people...until we didn't.
USA ... "storage will be exhausted in under two months,..."
China has empty cities that could store the oil.
I've got an empty oil drum in the back yard.
China has filled its reserves and no super tankers are sailing in that direction.
Good. Now that the fuel supply is adequate, it's time for a celebration. Light up the WWIII fuses, let's get ready to rumble!
seriously, though... im betting there's more than one neo-con freak running around the whitehouse screaming that after this fracking thing dies, america will never again have the oil reserves to prosecute a major war, so - use it or lose it
The shale companies have to service their junk bond debt or it is curtains. The gamble was to reduce rigs in the hope that oil would rebound as their hedges ran out. Without increased production a constant in the ponzi equation, revenue is going to plummet, bonds yields will rise and bankruptcies will flourish.
Haven't we all been trained to conserve, conserve, conserve? I'm trained.
Paid $3.33 at pump today on west coast. No love at the pump here.
Gold Bitchez....I pick up pennies
Yep. Same here, and just a month or so ago was $2.37. But then again, Jerry Brown and His Merry Band of Progressive Fuckups laid some extra taxes on us, too.
Yeah. Laugh you fuckers!
As goes California, so goes America. (God, I feel sorry for the rest of you.)
I can get it for $2.03/gal here.
Not after the Oil Companies blow up their Cracking Towers and Refineries Unions stage strikes.
We can have a glut of Oil along with a lack of supply for Unleaded Gas.
Enjoy it while you can. The model was tested in Southern California. Now they can implement it nation wide.
The Oil Companies will not lose a dime. You can be assured of that.
Does it have fucking ethanol in it for that price?
Nay. The Republic of Texas will carry on, albeit after a weeks celebration we are free of the union. Somehow I always pictured you being somewhere in the mid-west Knuckles.
Knuks belongs in Texas.
Don't worry water will soon cost more than oil for all the Brown brethern
That sucks. It's "jumped" to 2.29 here (Dallas).
I paid $2.13 today in Texas... for premium...
That is because of the refinery explosion.
And if Iran has sanctions lifted.....
But oil closed up on Friday, so this data must be incorrect. LMAO!!!
Stop bidding the oil market yellen....and the meats and the US indexes and now the Euro - you fucking asshole.
Export ban defeated in 3...2....1...
And will the price at the pump drop?
Of course not! It's Summer in Amurika!
I watched crude drop the past couple of weeks, and the price at the pump go up.
Makes perfect sense in the new normal.
This is BS. We have 5 major pads in the US and they are only up to about 60% in capacity at this point in time. We can store a lot more oil. Plus Summer is coming and oil consumption will go up significantly as it does every year.
Isnt that offset by little heating oil demand?
Cushing is at a record level 90 percent.
DRAINAGE MY BOY! DRAAAAAINAGE !!!!!
I don't get it. A year ago, they was much hand-wringing about the oil peak and how soon, unless we got the cars running on Coca-Cola, we were all going to start walking again.
And all of a sudden, we're awash in dirt-cheap oil?
Progressive fear porn. Targeted results... higher taxes, subsidies, etc.
Anybody but me wonder why Tesla is revered by the Progressives when it has yet to make money in spite of massive government subsidies for the production of status cars for the wealthy?
Nah. Same people who didn't think anything of screwing the senior GM bondholders.
Maybe some attention would be better paid to stopping shit like civil forfeitures than electric car subsidies. You know, the rule of law "stuff".
ZIRP caused massive malinvestment, and not just in oil.
Once this clears, you will never see cheap oil again.
Thanks FedRes.
Wear earmuffs anytime you enter an echo chamber.
Who said that? Quit repeating eveything I say....
You say something?
Quit repeating everything I say...
Oh Jesus, man, now you got me doing it!
What?
So there is somebody else here besides me and the other guys in my head....
getting suspicious
https://www.youtube.com/watch?v=LJGgieHn3x4
The Fed must now fix the crude oil crisis, obviously. All hale the Ponzi, the man behind the curtain will prevail. How many Trillion digital dollars could it take and what difference does it make in the land of OZ?