Skip to comments.US Oil Hits 14-Month High Above $100 A Barrel
Posted on 07/03/2013 9:38:17 AM PDT by Biggirl
U.S. oil prices soared more than 2 percent to a 14-month high above $100 a barrel on Wednesday, following a decline in crude stockpiles and concerns that unrest in Egypt could disrupt oil supplies from the Middle East.
(Excerpt) Read more at cnbc.com ...
I thought the Texas boom would have figured more strongly into this.
Well with Zero conducting a war on coal, what would one expect?
where I live the price just dropped to $3.08 a gallon (KY).
Just in time for the July 4th holiday!
Boy that Obama sure is doing a bang up job, ain't he?
Your car run on crude oil?
The Texas “boom” pretty much relies of sophisticated and high unit cost extraction methods, which are not practical unless the price becomes and REMAINS more than the break-even point.
One thing this price level will do is encourage a LOT of investment in “fracking” in places where it is not yet being undertaken, and a large shift to use of compressed natural gas as motor fuel. Liquified natural gas is a much more concentrated way to haul around a supply of methane, except it has to be kept below its critical temperature of -260°F, not an easy task under most field conditions. Which makes that mode not practical for parking all day at the lot or inside a closed garage.
Now, compressed natural gas has its own set of problems, one of which is the tanks themselves. It is possible, and may someday be practical, to handle extreme pressures (THOUSANDS of pounds per square inch) in quick-fueling sites, but until then, it may be more sensible to have swap-out tanks, much like the propane tanks on your barbeque grill. The line valve is cut off, the empty tank is swapped for a full one, and once put into place, the valve opened. You pay for the difference between the weight of the full tank and its equivalent empty weight, according to the tares weight stamped on the tank.
An awful lot of infrastructure is tied up in the tanks. And all that has to be amortized some way. Tanks do have a limited lifetime before failure (which could be catastrophic).
CNG vehicle fueling is not a complicated technology. It has been done for decades and the equipment has long since been standardized.
The real problem is a chicken / egg issue. Not many want to buy a CNG vehicle without convenient places to refuel. Not many want to invest in a CNG refueling system without a sufficient customer base to repay the initial cost and make a profit.
A few companies are spending money on this, but it is still very limited locations to refill.
In the past 5 year, Texas oil production has risen by nearly 1 million barrels per day.
In the same 5 years, the world oil consumption has risen by nearly 5 million barrels per day.
How is it going to work in all these small cars that the government has been pushing with its CAFE standards?
I don’t understand your question.
Where is the space for the extra tank that is used in natural gas vehicles?
CNG does require a larger fuel tank than gasoline. But it still beats the electric cars.
Honda makes a CNG Civic, so it can be done. But it does hurt what little storage space it had to begin with.
and yet the US is now out-producing the Arab states. - what’s going on? I hate regulations but perhaps this the time to assure that US production goes first to the US and the left over wherever!! This is nuts!!
And I don’t want to hear all that malarkey about oil is a world economy - that the US can’t be taken care of first.
I’m sorry doesn’t this mean gas is going to be going up?
Egypt is the cause
No, not necessarily....
But if you think it will buy some oil and gas stocks...play it to your advantage..
2 nice stocks under 10 a share are:
Kodak oil and gas - KOG
Hercules offshore - HERO