Hahahahahaha!!! Oh how I wish that would work… I really want to see offshore pick back up again before I retire…
Didn’t OPEC lower the price to crush Shale, how’s that working for them ?
Are you wonder why the oil price doesn’t recover and the GoM jobs come back??
Maybe here is the answer:
At the same time Crude oil from Saudi and other sources is arriving at terminals near you. Go figure.
nobody here seems to be able to grasp that oil cost to produce crude (Saudi derived or from hydraulic frac’ing) beats out high cost to produce crude every time…especially when there is a global surplus of production as in the past 3 years. if the US taxed imported crude 20% then suddenly the high cost GoM becomes economically viable for US consumption BUT the big oil refiners in the US will never stand for that because they love to buy crude at the low global price. It is that simple.
give the citizens of the USA a government what wants to truly become energy independent and wants to support the US based industry and voila, we are all back in business! Until then, pounding sand is all we are doing.
Aren’t some of the Gulf Coast refineries set up to handle other grades of Crude than WTI or GoM types?
To switch from heavy Venezuelan Crude to WTI isn’t done over night.
Saudi Crude on long term contracts may be cheaper than WTI but a lot of the reason there is a market for WTI in Europe and beyond is the price difference between WTI and Brent grades.
At this moment it is USD 5.51/bbl. in favour of Brent:
Libya and Nigeria are exempt from the production cap:
Reminds me of when I was trucking. I would watch our cross-country trailers double stacked on the rail cars, while the trucking industry had to pay a tax to support the railroads. Same crap, different industry.