Diesel today

[jyoutz]

Yeah, but you said Jeep. We know Jeeps have tiny fuel tanks.

Mine is about 15 gallons, which is why I only drive my truck when needed.

 

[Tomtint]

My truck takes 36 gallons of diesel. But $2.49 for regular and $2.97 for diesel currently isn’t too high. The last time I remember when diesel was less than $2 was before ULS fuel was introduced in 2007.

I recall on road diesel 2.09 at one point between 2016-2020 , gas was 1.35 ish

I remember asking my home heating oil company if I could pay them then like 5k and have them allocate 2500 gallons for my house at 2.00 pg…. They declined

 

[jyoutz]

I recall on road diesel 2.09 at one point between 2016-2020 , gas was 1.35 ish

I saw regular gas for $1.18 during 2020, but that was during the height of Covid shutdowns.

 

[Dennis Mohn]

1.51€ per litre here

ok, but doesn't it take a little more than 3 liters to make an American gallon

 

[ultrarunner]

ok, but doesn't it take a little more than 3 liters to make an American gallon

3.78 reading from my milk carton.

 

[Portuguese Farmer]

ok, but doesn't it take a little more than 3 liters to make an American gallon

3.78 ish

 

[jyoutz]

What’s the Euro to dollar conversion rate?

 

[5030]

I believe it fluctuates daily but you can use your favorite search engine to determine it. Like physical gold prices fluctuate daily, something I watch as I hold physical gold as an investment.

No, I don't buy Birch Gold either or any of those what I consider rip off deals.

Precious metals are always a long term investment btw.

 

[WM75Guy]

Only one type of oil production for sure. But the largest oil field in the world and where most U.S. oil is produced. It’s been published in oil journals that $58 is the median price where shale oil production is profitable. Nothing about the gobment. Individual companies have higher or lower price points for profitability, but on average when west Texas crude prices fall below $58/barrel, the drillers start packing it up.

Some reading on this topic:

https://finance.yahoo.com/news/us-energy-dominance-die-under-010405219.html

If anything, prices will slowly rise at the pump. The WTI price is up today. Pretty steady increase over the last month.

The Federal Reserve Board of Kansas City Energy Survey from 10/11/24 has the profitable price at $65. Headed towards the $89 price that oil companies say they need to substantially increase drilling. To stimulate the economy, the incoming nominee for Treasury Secretary wants a 3 million barrel a day increase in production, which is a 22% increase over today's 13,585,000 daily production. That is a substantial increase I would say. Based on price projections that is at least 5 years out.

Then it will take a while to increase production even if the price per barrel reached the $89 range. New wells have to be drilled just to maintain daily production as a new well's production starts declining after the first 6-12 months. You get 50% of a well's lifetime production in the first 3 years of an average 30-year life span. Our experience bears that out. Here is a graph of production from 26 of our leases totaling 33 wells for the first year. Some leases have 2 wells comingled.

Here are the results of the Federal Reserve Board of Kansas City Energy Survey from 10/11/24.

Tenth District Energy Activity Declined Further

 

[Hay Dude]

“Firms were asked what oil and natural gas prices were needed on average for drilling to be profitable across the fields in which they are active.”

That’s like asking me:

Q: “what hay prices are needed to be profitable”?
A: “$500 per ton”

 

[5030]

Just curious of anyone on here has any idea what the approximate cost is to punch a new oil well if it's a dry hole or not? By dry hole, I mean not productive enough to turn a profit for the driller...

I know, do you know?

 

[ultrarunner]

No... but the farm drilled two dry holes in hopes of water and lost 50k with the deep one down 800+ feet...

When the price of oil spike years back some small capped oil wells around the SF Bay Area were put back into production causing a stir... million dollar neighborhoods not aware they lived in oil country and were not happy.

 

[kenhar]

Just curious of anyone on here has any idea what the approximate cost is to punch a new oil well if it's a dry hole or not? By dry hole, I mean not productive enough to turn a profit for the driller...

I know, do you know?

A few of the drillers in Arkansas, drilling for natural gas in the Fayetteville shale said they were going down from 2500 to 3000 vertical feet, then about 5000 feet horizontal. Including the fracking, about $4 million per hole, with no problems.

 

[jyoutz]

If anything, prices will slowly rise at the pump. The WTI price is up today. Pretty steady increase over the last month.

The Federal Reserve Board of Kansas City Energy Survey from 10/11/24 has the profitable price at $65. Headed towards the $89 price that oil companies say they need to substantially increase drilling. To stimulate the economy, the incoming nominee for Treasury Secretary wants a 3 million barrel a day increase in production, which is a 22% increase over today's 13,585,000 daily production. That is a substantial increase I would say. Based on price projections that is at least 5 years out.

Then it will take a while to increase production even if the price per barrel reached the $89 range. New wells have to be drilled just to maintain daily production as a new well's production starts declining after the first 6-12 months. You get 50% of a well's lifetime production in the first 3 years of an average 30-year life span. Our experience bears that out. Here is a graph of production from 26 of our leases totaling 33 wells for the first year. Some leases have 2 wells comingled.

View attachment 2115588

View attachment 2115587

Here are the results of the Federal Reserve Board of Kansas City Energy Survey from 10/11/24.

Tenth District Energy Activity Declined Further

View attachment 2115586

This is consistent with what local Permian Basin producers are saying; and $58 or $65/barrel is necessary for increased drilling to be economically viable. This notion that more will be produced at $40/barrel isn’t realistic.

 

[WM75Guy]

A few of the drillers in Arkansas, drilling for natural gas in the Fayetteville shale said they were going down from 2500 to 3000 vertical feet, then about 5000 feet horizontal. Including the fracking, about $4 million per hole, with no problems.

Our wells were more expensive, although the production company didn't share the exact prices. The wells are 9,000' to 11,000' deep and 2 1/2 miles in length.

 

[5030]

Bingo on the big bucks to punch a well with no guarantee it will produce enough to even break even. Drilling is always a shot in the dark.

 

[Tomtint]

If anything, prices will slowly rise at the pump. The WTI price is up today. Pretty steady increase over the last month.

The Federal Reserve Board of Kansas City Energy Survey from 10/11/24 has the profitable price at $65. Headed towards the $89 price that oil companies say they need to substantially increase drilling. To stimulate the economy, the incoming nominee for Treasury Secretary wants a 3 million barrel a day increase in production, which is a 22% increase over today's 13,585,000 daily production. That is a substantial increase I would say. Based on price projections that is at least 5 years out.

Then it will take a while to increase production even if the price per barrel reached the $89 range. New wells have to be drilled just to maintain daily production as a new well's production starts declining after the first 6-12 months. You get 50% of a well's lifetime production in the first 3 years of an average 30-year life span. Our experience bears that out. Here is a graph of production from 26 of our leases totaling 33 wells for the first year. Some leases have 2 wells comingled.

View attachment 2115588

View attachment 2115587

Here are the results of the Federal Reserve Board of Kansas City Energy Survey from 10/11/24.

Tenth District Energy Activity Declined Further

View attachment 2115586

I don't think your post will age well

 

[Tomtint]

Bingo on the big bucks to punch a well with no guarantee it will produce enough to even break even. Drilling is always a shot in the dark.

Not as much a shot in the dark as you may think.. Friend worked on a rig in the Gulf.. They know where the oil is and their drills can go down..and sideways. He told me that if one rig was in a hot spot it was common for other rigs to drill their way over to them and start sucking off the same supply.

 

[WM75Guy]

Crude oil price is up $3.00 today. Should start seeing an impact at the pump before long. Lowest station that was $2.72 is now $2.97, up with all the rest. Pump war in that town must be over.

 

[jyoutz]

Here’s some good information from another tractor forum:

Diesel mushrooms

almost everyday it seems we hear about diesel fuel contamination. so I cut and paste for s&g's i put together the following for those who have been lucky so far. Quote: Diesel bug is contamination of diesel fuel by microbes such as bacteria and fungi. Water can get into diesel fuel as a result...

www.orangetractortalks.com