Oil Prices

[HGFireHazard]

I still say 467 hp with close to 430 on torque with a 200 to 300lb drop in weight in addition to increased mpg up to 30mpg hwy on the 5.0. With better efficiency vehicles there will be less demand for fuel, less demand drops prices at the same time these oil companies drop production to make the demand seem to have risen but it hasn't... at that time they increase their prices yet again when the spike in demand rises prices skyrocket and then you hear about the 3 billions of dollars in profits that these companies make and pisses you off :-) increasing mpg in larger engines is not impossible, capability is there along with changing some of the drivetrains increasing torque so there is less work and weight an engine has to do. Even if the engines do get smaller and become forced induction or turbo the torque band is much better either way you can compare that with most Audi lines of vehicles alot of their performance is awesome even for an Audi R8 which gets about 22 mpg which is awesome for a v10

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I'm going to go off topic here for a second to respond to you and don't wish to derail, but as I sit here with an oil derrick 200' from my work trailer window, you don't seem have a realistic or accurate opinion about the oil field or why the price of commodities changes.

To give you an example: I'm presently on day 52 straight of working 12 hour days several hours from my home. At this point the costs to drill this hole are over 2 million dollars. Even with the technology of today, some of these holes still end up being dry or may only flow 5-10 barrels of oil a day. Most wells that produce take no less than 3 years before an energy operator recovers their cost to drill the hole. Then you have the obvious that the companies have hundreds or thousands of employees and contractors they have to pay in addition.

As the cost of a barrel of oil fluctuates, oil companies have to make adjustments to remain viable. This is no different than any other business that exists. If demand is low, prices will drop and production has to be scaled back so the business can remain viable. To relate this to our forum here, this is no different than an auto manufacturer adding or removing shifts at plants to meet changing supply and demand.

Drilling and producing oil is much more complex today than it was even just 20 years ago. Horizontal drilling is now common and is an engineering feet. We are literally starting holes vertically and gradually taking the entire steel drill pipe string and "turning it" sideways to target very specific lateral sections of formations. As it becomes more difficult to extract oil for our increasing consumption, it will become more expensive to develop and utilize technology that can keep up.

There is a lot, lot more to the price of a gallon of gasoline than the price of a barrel of oil.

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[scottpe]

There is a lot, lot more to the price of a gallon of gasoline than the price of a barrel of oil.

All I know is gas prices keep creeping up and petroleum companies keep posting record profits. Certainly creates a perception that they have kept prices high because they can/want to and not because they need to.

But I digress. Definitely off topic.

 

[Rob WH]

I still say 467 hp with close to 430 on torque with a 200 to 300lb drop in weight in addition to increased mpg up to 30mpg hwy on the 5.0. With better efficiency vehicles there will be less demand for fuel, less demand drops prices at the same time these oil companies drop production to make the demand seem to have risen but it hasn't... at that time they increase their prices yet again when the spike in demand rises prices skyrocket and then you hear about the 3 billions of dollars in profits that these companies make and pisses you off :-) increasing mpg in larger engines is not impossible, capability is there along with changing some of the drivetrains increasing torque so there is less work and weight an engine has to do. Even if the engines do get smaller and become forced induction or turbo the torque band is much better either way you can compare that with most Audi lines of vehicles alot of their performance is awesome even for an Audi R8 which gets about 22 mpg which is awesome for a v10

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I couldn't tell a thing from that link in your last post.

Commodity traders are responsible for oil prices by bidding on oil futures contracts. At any rate, oil is typically purchased before it ever leaves the dirt. OPEC will cap what they drill/pump and sell in their member nations. In the US, our government tends to stay out of it, except it limits every aspect of every business there is... so they determine what's drilled here, but it isn't actually the oil companies. You'd probably be astounded if you knew even a fair number of drills set on private land and owned by the land owner rather than "big oil" in America.

As for the mpg and power you're expecting, I think that's just entirely off and if it were to happen, I would definitely buy a new GT. If Ford went DI, they will have the biggest help they could get in reaching those marks, but when I look at the mpg of the Corvette, which is in that power range, but far more aerodynamic, but doesn't reach that mpg, it's hard for me to think the Mustang will get there. Of course, the 5L is a smaller engine, but it's going to be moving the same basic amount of weight and will have lower gearing. Also, the 5L design does not lend itself to that much torque in N/A form.

You're suggesting good V6 fuel economy with a V8 that we don't know will have DI yet and without DI, there will be no such economy while still making the power. I'll be very happily surprised to see 450hp, let alone more, while maintaining the current fuel economy. Then again, I also think there's little chance this new Mustang is 100 lb lighter than the current. Here's to high hopes! :cheers:

 

[GMAN6]

Yeah, it's a scam.
Or really just a monopoly with price fixing.
My dad worked his whole life as an engineer for oil companies on exploratory rigs, land and water.
The cost of oil depends on how hard it is to get. The cheapest oil comes from the middle east where you simply poke a hole in the ground and it pours out. You don't even have to pump it out. That oil costs less than 10 nets per gallon to produce. It gets more expensive when you have to drill deeper here in the US and also with directional drilling. Offshore drilling is even more expensive with the boats and floating or backup rigs. Deep water il is more still. I believe oil has to sell for around four dollars a barrel for deep water oil to be profitable.
But with all that being said, if oil prices were fixed and controlled by monopolistic companies, it would follow the free market laws of supply and demand. The US is producing more oil than ever under the Obama administration and we are awash in oil and gas. We have become the largest producer in the world and will soon have to start exporting it yet prices are going up....lol
My dad learned it was a racket a long time ago. He always told me that they constantly drill and cap wells. We have millions of wells that are capped and not being used. The oil companies make billions in profit.

 

[Moderator]

Let's get this thread back on topic. If you want to continue the oil discussion I can move it to a new thread in the off-topic section.

EDIT: New thread just for you guys.

 

[Pablo GT350]

I'm going to go off topic here for a second to respond to you and don't wish to derail, but as I sit here with an oil derrick 200' from my work trailer window, you don't seem have a realistic or accurate opinion about the oil field or why the price of commodities changes.

To give you an example: I'm presently on day 52 straight of working 12 hour days several hours from my home. At this point the costs to drill this hole are over 2 million dollars. Even with the technology of today, some of these holes still end up being dry or may only flow 5-10 barrels of oil a day. Most wells that produce take no less than 3 years before an energy operator recovers their cost to drill the hole. Then you have the obvious that the companies have hundreds or thousands of employees and contractors they have to pay in addition.

As the cost of a barrel of oil fluctuates, oil companies have to make adjustments to remain viable. This is no different than any other business that exists. If demand is low, prices will drop and production has to be scaled back so the business can remain viable. To relate this to our forum here, this is no different than an auto manufacturer adding or removing shifts at plants to meet changing supply and demand.

Drilling and producing oil is much more complex today than it was even just 20 years ago. Horizontal drilling is now common and is an engineering feet. We are literally starting holes vertically and gradually taking the entire steel drill pipe string and "turning it" sideways to target very specific lateral sections of formations. As it becomes more difficult to extract oil for our increasing consumption, it will become more expensive to develop and utilize technology that can keep up.

There is a lot, lot more to the price of a gallon of gasoline than the price of a barrel of oil.

Thanks for a very well written explanation of just one aspect of our economy. If more people got that we'd be better off as a country. And I'd have more gas to burn to make up for all those Prius.

 

[Rob WH]

Yeah, it's a scam.
Or really just a monopoly with price fixing.
My dad worked his whole life as an engineer for oil companies on exploratory rigs, land and water.
The cost of oil depends on how hard it is to get. The cheapest oil comes from the middle east where you simply poke a hole in the ground and it pours out. You don't even have to pump it out. That oil costs less than 10 nets per gallon to produce. It gets more expensive when you have to drill deeper here in the US and also with directional drilling. Offshore drilling is even more expensive with the boats and floating or backup rigs. Deep water il is more still. I believe oil has to sell for around four dollars a barrel for deep water oil to be profitable.
But with all that being said, if oil prices were fixed and controlled by monopolistic companies, it would follow the free market laws of supply and demand. The US is producing more oil than ever under the Obama administration and we are awash in oil and gas. We have become the largest producer in the world and will soon have to start exporting it yet prices are going up....lol
My dad learned it was a racket a long time ago. He always told me that they constantly drill and cap wells. We have millions of wells that are capped and not being used. The oil companies make billions in profit.

#1 Oil producer... RUSSIA.
#2 Saudi Arabia
#3 USA.

As for producing more than ever under Obama, that's not even a funny joke, nor is it remotely possibly true... Not POSSIBLY true... Look back in history and you'll quickly learn that USA used to be the #1 producer of basically everything, including oil. In the 1970's, that began to change quickly and we have approximately 1/2 the number of operable refineries today as we had in 1982, thanks 100% to... our government, through the EPA! As a result, many refineries have been expanded (because new ones are too expensive to build due to EPA rules) and we produce about 300,000 fewer barrels per day than we did when measurements began in 1982. That's just actual refining. Production is a different step(the 2nd, after finding) of making fuel and oil usable.

 

[Shark77]

#1 Oil producer... RUSSIA.
#2 Saudi Arabia
#3 USA.

As for producing more than ever under Obama, that's not even a funny joke, nor is it remotely possibly true... Not POSSIBLY true... Look back in history...

You're right on the World production being 3rd, but we're producing more oil today than ever before.

 

[Rob WH]

http://www.eia.gov/cfapps/ipdbproje...7&aid=1&cid=US,&syid=1980&eyid=2013&unit=TBPD

Sorry, I was only talking about CRUDE, not all gases and oil... your graph includes them all from the looks.

I hadn't bothered looking beyond 2012 till now.

Important note: See how we both got the information we wanted... from the same source??? That's what manipulation is all about.

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