Today’s Gas & Diesel Price Updates

From Bloomburg:

Have you ever seen an oil rig walk?hopkins-rig

Some of the newest rigs can travel hundreds of yards to the next well under their own power, lurching along like 150-foot-tall robots on hydraulic legs that raise the equipment five inches at a time, nudging forward at about a foot per minute. While that sounds slow, it is faster and cheaper than dismantling a rig and trucking the parts to a new site nearby.

More efficient drilling rigs that cost a third less than just a year earlier are changing the face of the U.S. shale industry, helping boost per-rig output in the four largest fields by at least 40 percent since the crude price plunge began in 2014. While helping producers pump more oil, the new rigs have a downside. Companies such as Helmerich & Payne Inc., Nabors Industries Ltd. and Patterson-UTI Energy Inc. that provide the equipment face investor concern that the improvements they’ve made might translate into fewer sales in the future.

Producers “are being incentivized to continue drilling to keep cash coming in the door because costs have come down so much,” Rob Desai, an analyst at Edward Jones in St. Louis, said in a telephone interview. “Even though the rig count is down by half, you can do more with the half that’s still working.”

U.S. Production per rig is up 40% since the crude price plunge.

Good morning,

Good news! Perhaps I was right that traders at the end of month had to settle their bets kicking up the price. Well, it kicked back down today. Gasoline is down by 7.60 cents/gallon at the average rack in Selma. Diesel fuel plummetted by 10.27 cents/gallon. Crude dropped an unbelievable $3.55/barrel to $44.12, probably headed back below $40, especially since it looks like the Iran deal will happen and Iran starts pumping oil into the world glut. Cartels only work if there is a limit to supply. This cannot happen when each country is fighting for market share. Good for us! The country is onthe verge of its third BOOM driven by oil. In just my little world here, our office, I hired an employment agency aout two weeks ago to find Sidney an assistant. I called the young lady at the agency back and she reports everyone has a job. Everytime they call back an applicant, they already have a job. If you know any one good who could work as Sidneys office assistant, taking the phone orders and putting into our Cloud Dispatch program, then have them call Sidney. Thank you.

Have a great day,

-Larry Hopkins

Today’s Gas & Diesel Price Updates

Bad news. Bloomburg:

Oil capped the biggest three-day gain in 25 years after OPEC said it’s ready to talk to other global producers to achieve ‘fair prices’ and the U.S. government reduced its crude output estimates.

Crude traded in New York surged 27 percent in three days, the most since August 1990 when Iraq invaded Kuwait. Both West Texas Intermediate and Brent benchmarks have climbed more than 20 percent from their closing low on Aug. 24, meeting the common definition of a bull market. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of the world’s supply, said in a monthly publication it’s willing to talk, “but this has to be on a level playing field.”

Pardon my crudeness, but if every minister at OPEC farted at the same time, crude would jump up at least $3/barrel. Big jumps in prices. Crude is up by $2.45/barrel to $47.67. Gasoline jumped up by 7.45 cents/gallon at the average rack in Selma. Diesel fuel jumped up by 7.68 cents/gallon. Some of this move might be explained because it is the end of the month and traitors are settling their bets. If so, prices should drop tomorrow. Prices today are:

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Have a great day,

-Larry Hopkins

Today’s Gas & Diesel Price Updates

Prices are Up. No panic. We are near the end of the month and traders are settling their positions. Gasoline jumped up by 8.76 cents/gallon at the average rack in Selma. Diesel fuel is up 6.18 cents/gallon. Crude jumped up by $2.64 to $45.22/barrel. Prices are:

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Have a great day,

-Larry Hopkins

Today’s Gas & Diesel Price Updates

From Bloomberg;
Even amid the worst price crash in a generation, that continues to be true for some companies. Pioneer is expected to spend$735 million more this year than it generates in cash. Cimarex, which lost almost $1 billion from January to June, has fallen just 6.4 percent so far in 2015 even as U.S. crude declined by more than a quarter.
Executives defend the grow-at-all-costs strategy by saying they’ve changed their methods to be more efficient. Costs for some companies have fallen more than 20 percent, according to Bloomberg Intelligence, and higher productivity has improved the outlook even at $40 oil. Growth is the natural outcome of drilling good wells, according to producers embracing such plans.

Crude is up 2 cents to $39.27/drum. Gasoline is down by 6.11 cents/gallon at the average rack in Selma. Diesel fuel is down by 1.07 cents/gallon. Prices are:

Screen Shot 2015-08-26 at 11.44.32 PM

Have a great day,

-Larry Hopkins