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BIDEN BLOWS UP OIL PRICES BY CANCELLING DRILLING IN U.S. NOW BEGS OPEC
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<blockquote data-quote="bacha29" data-source="post: 5880429" data-attributes="member: 58386"><p>I know that there is a ton of shut in gas wells around here. Why are they shut in? The price is too low. If you know of so many shut in oil wells chances are they are low yielding expensive to transport oil wells that need a higher price in order to justify the cost of transportation. Now that refinery is only going to bid so much for the type of crude it's setup can refine and if it can get all it needs for a better price than what those shut in wells can deliver profitably then it will stay there until the price improves.</p><p></p><p>When oil spiked 2 years ago the SPR oil was bringing $95 a barrel. The energy department is not going to jump is a stressed market and buy up a bunch of oil and in doing so put even more upward pressure on oil. Last year when the SPR was taking bids at around 70 a barrel there weren't many takers because traders rolled the dice and chanced that the price of oil would improve back into the 80-90 range where the Saudi's wanted it and they cut production until they got it.</p></blockquote><p></p>
[QUOTE="bacha29, post: 5880429, member: 58386"] I know that there is a ton of shut in gas wells around here. Why are they shut in? The price is too low. If you know of so many shut in oil wells chances are they are low yielding expensive to transport oil wells that need a higher price in order to justify the cost of transportation. Now that refinery is only going to bid so much for the type of crude it's setup can refine and if it can get all it needs for a better price than what those shut in wells can deliver profitably then it will stay there until the price improves. When oil spiked 2 years ago the SPR oil was bringing $95 a barrel. The energy department is not going to jump is a stressed market and buy up a bunch of oil and in doing so put even more upward pressure on oil. Last year when the SPR was taking bids at around 70 a barrel there weren't many takers because traders rolled the dice and chanced that the price of oil would improve back into the 80-90 range where the Saudi's wanted it and they cut production until they got it. [/QUOTE]
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BIDEN BLOWS UP OIL PRICES BY CANCELLING DRILLING IN U.S. NOW BEGS OPEC
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