What's going to happen to crude oil

The US are talking again about putting tariffs on oil imports.
Trump threatens imposing tariffs on 'oil coming from outside'
U.S. President Donald Trump has threatened imposing tariffs on crude imports "coming from outside" amidst the COVID-19 pandemic and the price war between Russia and Saudi Arabia.

"If I have to do tariffs on oil coming from outside or if I have to do something to protect our — tens of thousands of energy workers and our great companies that produce all these jobs, I'll do whatever I have to do," Trump told reporters during a COVID-19 briefing held Saturday.
Opinion seems to be that the Americans are staking out a position for negotiations with OPEC and Russia. A meeting was scheduled for Monday, but that's been pushed back to Thursday.
To Masson, the threat from Trump appears to be the U.S. staking out its position in what is sure to be a very complex negotiation with the Organization of the Petroleum Exporting Countries (OPEC), Russia and other countries like Norway.

"[They all] have to figure out, how are we going to manage the market in essentially the worst crisis we've ever faced," he said. "That's the big picture to me. They're trying to establish whatever kind of leverage they can get."
 

NSP

LE
Looks like OPEC opened with an offer of $19/bbl when the markets opened this morning.

Gonna be a quiet year for me, then, virus or no virus.
 
Gazole (diesel) prices have been dropping for some time now here, although I don't see it dropping to the equivalent of 97p a litre like it did a few years back.
Again, all governments need that tax revenue.
Just over a £ UK at the moment round here.

 

Oyibo

LE
Gazole (diesel) prices have been dropping for some time now here, although I don't see it dropping to the equivalent of 97p a litre like it did a few years back.
Again, all governments need that tax revenue.
Just over a £ UK at the moment round here.

Handy web page. Thanks. My village petrol station is 30c more expensive than the nearest Super U
 
Low oil prices are a good thing. Cheaper fuel and goods for consumers, and the added bonus that the Middle East may go back to being a medieval shit hole without the ability to affect us in the west, rather than a medieval shit hole that can export it's own special brand of hatred.
 
Gazole (diesel) prices have been dropping for some time now here, although I don't see it dropping to the equivalent of 97p a litre like it did a few years back.
Again, all governments need that tax revenue.
Just over a £ UK at the moment round here.

Tax revenues are not the way forward. I'd take lower expenditure combined with more money in the person's pocket any day.
 
Low oil prices are a good thing. Cheaper fuel and goods for consumers, and the added bonus that the Middle East may go back to being a medieval shit hole without the ability to affect us in the west, rather than a medieval shit hole that can export it's own special brand of hatred.
Nope, it has the opposite effect. The Middle East has the lowest cost of production, therefore, if the price goes low enough, they put everyone else out of business and become virtually a monopoly supplier. They can still earn enough money at very low prices to continue export their own special brand of hate, while we end up being dependent on them.
 

mcphee1948

War Hero
Nope, it has the opposite effect. The Middle East has the lowest cost of production, therefore, if the price goes low enough, they put everyone else out of business and become virtually a monopoly supplier. They can still earn enough money at very low prices to continue export their own special brand of hate, while we end up being dependent on them.
Has Saudi Arabia got anything to contribute to the world, economically, scientifically or culturally, except barrels of oil? Once we learn to live without their oil, we'll be able to snap our fingers at them.
 

ExREME..TECH

On ROPS
On ROPs
Has Saudi Arabia got anything to contribute to the world, economically, scientifically or culturally, except barrels of oil? Once we learn to live without their oil, we'll be able to snap our fingers at them.
Mosques?
 

mcphee1948

War Hero
Has Saudi Arabia got anything to contribute to the world, economically, scientifically or culturally, except barrels of oil? Once we learn to live without their oil, we'll be able to snap our fingers at them.
They should have been investing in other areas for decade or two now , cant say as I`ll be sorry to see them crash and burn , arrogant backwards cnuts.
 

crazy_chester

Old-Salt
This might be a stupid question but can Crude Oil be stored and refined as and when needed? Can distilled products be stored? I have a vague memory of my brother struggling to start a chainsaw but saying the petrol might have gone stale?

Does the UK or anyone else have any significant oil storage capacity?
Not a stupid question at all. Yes it can be stored, in fact often oil is pumped from flow stations via a long pipe network to a terminal where huge storage tanks hold vast quantities. These Terminals are usually located close to the sea where it can eventually be pumped offshore to a offloading point in the ocean where a tanker is waiting to receive it.

However, when oil is pulled out of the ground a by-product of gas is also produced. This by-product is a valuable commodity if you have the infrastructure to push it down a big pressure gas pipe network, store it and ship it. If you dont have that infrastructure, then you have to burn the gas at the flow station - a practice known as flaring with associated environmental dramas.

The work involved in pumping oil, flaring gas, storing oil in tanks etc means that at times like this oil companies in some parts of the world decide it is preferable to keep the oil in nature's own storage container - underground in the wells and not pump it in the first place until the price rises again.
 
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ExREME..TECH

On ROPS
On ROPs
OK, architecture admitted. St Paul's cathedral will make a very pleasing mosque, when it's duly converted in about 2040.
Shit it's 2000 now, call the RAF in, oh they are in the bar in the hotel
 

Oyibo

LE
Not a stupid question at all. Yes it can be stored, in fact often oil is pumped from flow stations via a long pipe network to a terminal where huge storage tanks hold vast quantities. These Terminals are usually located close to the sea where it can eventually be pumped offshore to a offloading point in the ocean where a tanker is waiting to receive it.

However, when oil is pulled out of the ground a by-product of gas is also produced. This by-product is a valuable commodity if you have the infrastructure to push it down a big pressure gas pipe network, store it and ship it. If you dont have that infrastructure, then you have to burn the gas at the flow station - a practice known as flaring with associated environmental dramas.

The work involved in pumping oil, flaring gas, storing oil in tanks etc means that at times like this oil companies in some parts of the world decide it is preferable to keep the oil in nature's own storage container - underground in the wells and not pump it in the first place until the price rises again.
Just to add to chester's post, the oil can be kept in reservoirs, but it requires what is known as 'reservoir management'. To put it in simple terms, one cannot simply turn off all the taps and return in a year or two as the oil and gas might have gone elsewhere and the reservoir destroyed. The management of reservoirs usually involves drilling and injection of gas or water (or both). Just doing that costs a hell of a lot of money, hence the reason why upstream E&P companies have to have very significant cash reserves.

Storing in tank farms is probably cheaper than partial mothballing.
 
Has Saudi Arabia got anything to contribute to the world, economically, scientifically or culturally, except barrels of oil? Once we learn to live without their oil, we'll be able to snap our fingers at them.
Yeah, we can farm unicorns and grow rainbows in this fantasy world of yours.
 
Just to add to chester's post, the oil can be kept in reservoirs, but it requires what is known as 'reservoir management'. To put it in simple terms, one cannot simply turn off all the taps and return in a year or two as the oil and gas might have gone elsewhere and the reservoir destroyed. The management of reservoirs usually involves drilling and injection of gas or water (or both). Just doing that costs a hell of a lot of money, hence the reason why upstream E&P companies have to have very significant cash reserves.

Storing in tank farms is probably cheaper than partial mothballing.
Natural gas is produced two ways, from wells that produce strictly natural gas (although often along with some liquids), and as a by-product of oil production. In the latter case the amount of gas produced will depend on the reservoir.

Gas producers in Canada are predicting that oil wells will be shutting down in the US (and to some extent in Canada), which will cut into overall gas production. They therefore see natural gas prices going up as a consequence. Gas consumption hasn't been hit as hard by the current situation as oil consumption has. Gas producers are quite happy about this, as gas prices have been very low recently due to the glut on the market (hence the big push for LNG exports). Nobody knows for sure that gas will do OK in the crisis, but that seems to be opinion so far.

I don't know how this will translate into gas prices in the rest of the world, but it's a factor to take into account.

'There is some upside': Optimism in natural gas sector a result of oil industry's crisis

Wright said he has "no joy at all" at seeing oil prices so low, but he's optimistic about what it will mean for his company.

"The oil price is going to take some time to recover, in my best estimate, and that means with less gas being produced with it, there is some upside to natural gas," he said.
 

Chalkythedog

Old-Salt
It's a business fraught with uncertainty. Refineries are continuous process, you either keep them going, or close them down. Closing is not a decision to be taken lightly. Fuel consumption in this country is down 70% since lockdown. Somebody's going to have to make a decision soon. Problem is, if the refineries are closed, when demand picks up, there won't be enough product available. And we all know where that leads.
Meanwhile, just when the Exchequer needs it most, fuel duty revenue is on the floor. Doesn't look good.
 

Oyibo

LE
Natural gas is produced two ways, from wells that produce strictly natural gas (although often along with some liquids), and as a by-product of oil production. In the latter case the amount of gas produced will depend on the reservoir.

Gas producers in Canada are predicting that oil wells will be shutting down in the US (and to some extent in Canada), which will cut into overall gas production. They therefore see natural gas prices going up as a consequence. Gas consumption hasn't been hit as hard by the current situation as oil consumption has. Gas producers are quite happy about this, as gas prices have been very low recently due to the glut on the market (hence the big push for LNG exports). Nobody knows for sure that gas will do OK in the crisis, but that seems to be opinion so far.

I don't know how this will translate into gas prices in the rest of the world, but it's a factor to take into account.

'There is some upside': Optimism in natural gas sector a result of oil industry's crisis
The economics of natural gas are very different from oil mainly due to the difficulties of midstream transport and storage. Canada, with its very good infrastructure, might have some upside for gas. But in global terms the difficulties will take years to overcome. The cost of and LNG tanker and storage compared to oil is enormous, and the time it takes to build them is very long and expensive.
 

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