Very limited storage, highly decreased demand due to the Covid19 and continuous production, made the price of oil crashed to its minimum historical values, reaching even negative valuation. That actually means buyers are receiving money for buying oil.
Which impact will have in the industry in general? Is this the official beginning of Green Energy being used and funded at large scale? or is it just a momentaneous situation?
DoomYoshi wrote:Why would "green energy" be used when oil is so cheap?
If a low-value is maintained for a long period, the industry simply will collapse. Also investing and funding in the oil industry will dry out, if investors do not get profit from its trade, creating a cycle of defunding the industry as a whole.
Also make a deterrent to new exploration projects.
And to the general public, it gives the idea that a commodity that reaches a negative value, indicates that the higher value it may have in the past it was artificially created
This is a brilliant move by Trump. Before the November election, when oil prices have gone back up, he can flood 100 MM barrels of oil onto the domestic market to push gasoline prices down which will help solidify his reelection. Plus, the USG will make a mint off the sale.
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
The U.S. reportedly locked in its SPR futures last night at the negative price.
This morning President Trump ordered the U.S. Navy to destroy any Iranian naval vessels they happen to come across. This has moved the price of oil up 24% helping accelerate profit from the investment and stabilizing the finances of U.S. shale producers.
#ArtOfTheDeal
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
saxitoxin wrote:President Trump has announced he will use the negative oil price to top-off the Strategic Petroleum Reserve to its 800 MM barrel capacity.
This is a brilliant move by Trump. Before the November election, when oil prices have gone back up, he can flood 100 MM barrels of oil onto the domestic market to push gasoline prices down which will help solidify his reelection. Plus, the USG will make a mint off the sale.
Is interesting that (some) american people support bailing out oil companies again, amid a crisis that is affecting the most vulnerable, and specially small businesses.
Also, the underlying issue here is that the storage of this oil is more expensive than its potencial profit, alas the negative valuation at certain point. Such a move is probably good for oil companies though, but I doubt is a good move in the more broad economical sense. But then again, if the guy decides suddenly to shoot people in fifth avenue, he would still count with your support, right saxi?
saxitoxin wrote:President Trump has announced he will use the negative oil price to top-off the Strategic Petroleum Reserve to its 800 MM barrel capacity.
This is a brilliant move by Trump. Before the November election, when oil prices have gone back up, he can flood 100 MM barrels of oil onto the domestic market to push gasoline prices down which will help solidify his reelection. Plus, the USG will make a mint off the sale.
Is interesting that (some) american people support bailing out oil companies again, amid a crisis that is affecting the most vulnerable, and specially small businesses.
Also, the underlying issue here is that the storage of this oil is more expensive than its potencial profit, alas the negative valuation at certain point. Such a move is probably good for oil companies though, but I doubt is a good move in the more broad economical sense. But then again, if the guy decides suddenly to shoot people in fifth avenue, he would still count with your support, right saxi?
Well the U.S. Government owns its own storage facilities in salt caverns in Louisiana so it shouldn't cost it anything at all to store more or to store less.
But, yes, if Trump opened fire on Fifth Avenue I'd say "Good Start!"
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
Not been funny but if someone has annoyed someone else enough that they want to shoot them than that person has probably done something they shouldn't of? So the shooting may not be correct but it could at least be understood by a neutral observer.
saxitoxin wrote:President Trump has announced he will use the negative oil price to top-off the Strategic Petroleum Reserve to its 800 MM barrel capacity.
This is a brilliant move by Trump. Before the November election, when oil prices have gone back up, he can flood 100 MM barrels of oil onto the domestic market to push gasoline prices down which will help solidify his reelection. Plus, the USG will make a mint off the sale.
Is interesting that (some) american people support bailing out oil companies again, amid a crisis that is affecting the most vulnerable, and specially small businesses.
Also, the underlying issue here is that the storage of this oil is more expensive than its potencial profit, alas the negative valuation at certain point. Such a move is probably good for oil companies though, but I doubt is a good move in the more broad economical sense. But then again, if the guy decides suddenly to shoot people in fifth avenue, he would still count with your support, right saxi?
Well the U.S. Government owns its own storage facilities in salt caverns in Louisiana so it shouldn't cost it anything at all to store more or to store less.
But, yes, if Trump opened fire on Fifth Avenue I'd say "Good Start!"
That's not how it works. That you own them it does not mean its free. There is energy and labour cost associated. And in this specific case, the current storage is pretty much at its highest capacity, therefore needing to rent space somewhere else.
Saxi, do you think is good the USA breaks in parts? CA, NY and other should secede?
saxitoxin wrote:President Trump has announced he will use the negative oil price to top-off the Strategic Petroleum Reserve to its 800 MM barrel capacity.
This is a brilliant move by Trump. Before the November election, when oil prices have gone back up, he can flood 100 MM barrels of oil onto the domestic market to push gasoline prices down which will help solidify his reelection. Plus, the USG will make a mint off the sale.
Is interesting that (some) american people support bailing out oil companies again, amid a crisis that is affecting the most vulnerable, and specially small businesses.
Also, the underlying issue here is that the storage of this oil is more expensive than its potencial profit, alas the negative valuation at certain point. Such a move is probably good for oil companies though, but I doubt is a good move in the more broad economical sense. But then again, if the guy decides suddenly to shoot people in fifth avenue, he would still count with your support, right saxi?
Well the U.S. Government owns its own storage facilities in salt caverns in Louisiana so it shouldn't cost it anything at all to store more or to store less.
But, yes, if Trump opened fire on Fifth Avenue I'd say "Good Start!"
That's not how it works. That you own them it does not mean its free. There is energy and labour cost associated. And in this specific case, the current storage is pretty much at its highest capacity, therefore needing to rent space somewhere else.
Saxi, do you think is good the USA breaks in parts? CA, NY and other should secede?
Well I think Trump has only suggested we cap-out the current SRP storage space at 800 MM barrels or whatever it is, not buy in excess of available storage. So the costs the private sector incurs won't be equivalent to what the U.S. Government needs to spend.
No, we need the population of California and New York to milk for taxes. We may not like them but a farmer doesn't need to like his cattle. Plus, if they seceded it would create two strategic challengers on the same continent as the United States which would erode our defensive invulnerability.
California and New York should remain part of the United States but with a boot on their throats forever. If there was no choice but for them to secede, they would have to be completely pastoralized first by destroying all their industry so as to render them impotent and mild.
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
