Crude Oil up close to 10% today

[oneoff]

Some producers agreed to production cuts and prices jump 10% in a day.

Farmers meanwhile would sell for a nickle more or even a few dollars less. Even when their costs are set to escalate even more (or already have been risen based on what the market will bear.)

[errolanderson]

oneoff . . . are you aware of what's happened to western Canada's energy sector?

[helmsdale]

Cant wait to see diesel's reaction at the pumps. Heaven help us if we ever get back to $100/bbl crude.

[fjlip]

$2 per litre, $9 per gallon, everybody happy.....farmers f*cked

[workboots]

Errol, that has a sympathetic tone. Are you referring to the insolvent and inefficient frack and tar-sand oil companies and all those riding on the coattails. All created by opec's inflated oil price. That all exacerbated by central banks easy money, all part of the deflationary spiral you speak of. Only they got it a little worse when the old cartel couldn't pull though.

You want sympathy from a grain farmer. The guy that hasn't had the luxury of a cartel propping up the industry.

You want sympathy from farmers who watched big Oil money Buy up farmland.

Good luck

[bucket]

If oil goes to 55 or 60 does anyone think the Saudis or Iranians are going to shut off the taps?

Or the low cost producer in North America going to sit idle?

[oneoff]

Yeah. Errol I think I know whats going on. In fact I do try to keep up with current events; hot topics of the day; watching and also participating in whats practical and workable; closely following whats going on behind the scenes etc.. and even creating a few practical projects (from scratch) that it appears are firsts for Sask and maybe even the world. You'd be surprised about the reasons why any person is wise to not be too specific sometimes

I've spent substantial time attending planning sessions; voting; sitting in public galleries at all sorts of places; watching BNN and also farming "unconventionally" if you can catch the significance. Also have the benefit of some years older age so I can be dragged down to a lower common denominator; but not as easily forget the punchline of that old true saying about being beaten by experience.

Probably could put as many acronyms behind my name as most; still wouldn't be afraid to post a letter to the editor; can get into the Oil Shows and so on.

And really wonder sometimes where all the other people are that have skin in the games (whether they ever know it or not).

Still can't spell too well; but I could tell anyone a thing or two about the oil industry. Been there...done that from all sides.

And sure diesel in the farmers tank and your vehicle will be up more than 10% probably by the time this gets posted. One question is... should it have been upwards of 90 cents a liter with sub $45 US WTI crude. And do many realize the deductions that come off a non-vertically integrated oil company raw product? Do you know how really cheap that "wholesale" propane was this last while (not necessarily filling your 20 pound barbecue tank) or the economics of operating a sour gas processing plant where Trans Gas is effectively the sole purchaser of the methane (the ethane now commonly stripped out for petrochemical uses thereby decreasing the heating value of a cubic foot of what) you used to get as "natural gas".

So in answer to your question; I get your point and understand more than what I am given credit for.


IMHO of course. Also try to correct a few honest mistakes.....

[oneoff]

Once was told by Murray Mandryk that the history of the world up to the Second World War could be summarized in less than a paragraph.

Now its possible that is the desirable attention span and theoretical input limit of the average human brain.

I understand that there is a 140 some character limit for "Twitter" or "tweet" or whatever but does that confirm that missing details are always unimportant. Perhaps some detail adds interest and substance.

Its been proven on this forum that many are offended and turned off by any details.

[bucket]

Errol and others


Why does it take 6 months for the price of gas to come down but only a millisecond after the newswire to go up?

Don't they have low price inventory in stock for a while just like the high price stuff when it should go down?

[oneoff]

Well maybe everyone should just detest avoidable mistakes

[errolanderson]

I hear your frustration and agree that the immense fat (during the good times) across global and Cdn energy industry makes it difficult for sympathy.

But energy is the key driver of western Cdn jobs and economy. Fed spending is totally out of control. And Alberta energy is now not there to help pull up the boot straps of these excesses. A true mess and a wake-up call in the making.

Our economy and family jobs desperately need western Cdn select oil prices to rise . . . and soon.

The global economic slowdown is apt to worsen into 2017. And the Trump rally (IMO) is now built on promises, not reality.

Yesterday's huge 10% rally in crude oil just shows how low energy prices are in real terms.

[furrowtickler]

Agreeded Oil prices probably low in real terms , but fuel prices sure were not.
Kinda like grain prices overall , especially wheat - very low in real terms . But we are told the same thing over and over - world is awash in wheat , as is oil, so suck it up.
We have to make due, or change our practices.

[bucket]

Trump is getting some big hitters on board.....these are not stupid people.....watching an interview with Wilbur Ross saying trump doesn't blink during negotiations. ...if an 80 year old businessman is ready as he said ....to leave his day job to support trump....there is something changing.

[tweety]

But energy is the key driver of western Cdn jobs and economy. Fed spending is totally out of control. And Alberta energy is now not there to help pull up the boot straps of these excesses. A true mess and a wake-up call in the making.

Energy can also be the key driver in an unrealistic, unsustainable, and overblown out of touch segment of the population that screws up every other industry. what AB isn't used to is living normal like the rest of us. Business still goes on in AB, a select noisy few miss the outrageous profits of the past decade, and that is what gets sensationalized as "out of work oil workers"

[oneoff]

Right on furrow et al (including parts of errol)

We need crude oil and natural gas and coal; until assets are sufficiently depreciated. T otherwise is to waste resources in attempting to switch over to alternatives that have their own liabilities; are not yet "ready"; are unproven and never will be the complete panacea that "environmentalists" are crusading for.

If oil is priced below cost of production (and inevitable reclamation and even a decent profit); then its more than just the industry that will suffer in the long run.

And just maybe the consolidation back into only major players isn't at all healthy. Some "junior" companies have been shown to be good for Sask in the past. They didn't all go bankrupt as some may believe. Some serious money was captured from the majors who seem to have an appetite and access to investor money that exceeds their capability to manage their exponential growth.

The old adage about 5 cents of wheat in a loaf of bread has a lot of truth in more than just farming.