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”