Diesel $2.89
Lead Driver
Joined: Dec 2003
Posts: 5,250
Likes: 42
it averaged that price through the 90s and early 2000s. they base their costs to produce on the current cost of operation (ie $4 diesel). they do the same on the market. the price of gas may drop $.40 on the market, but if it jumps back up the following day/week, we never see a difference at the pump since they trade futures.
if the price falls to ~$30 level and holds, the cost of everything will readjust and the USA will be in a better place.
that was always the problem a few years ago. Notice, you do not hear much about OPEC any more.
the main reasons:
1.) Saudi Arabia
2.) Texas and N. Dakota
5 years ago, the USA averaged 5 million barrels/day production. Today, it is close to 9.
More Turbo
Joined: Jan 2006
Posts: 687
Likes: 15
From: Lake Charles, LA
i live just south of lake charles, la and around here most of it ranges from 2.69 to 3.59 depending on the where you get it. But im lucky that a store just a mile down the road is cheapest around and for past few week ive been filling up for 2.49, gas at 2.19. Im loving this..... its not so much that the saudis are flooding the market, its just that with higher prices for so long we developed fields that could be profitable at those prices and thus WE are adding to the market. Typically the saudis would cut back on production to restrict supply and stablize the prices, but this time they arent, they are maintaining production in attempt to drive price down where all the new fields in the US are not profitable anymore, we shall see where it all goes. its kind of double edged sword, i like low fuel prices, but i like putting folks to work as well and lately there has been a oil boom, sure would hate to see it collapse....
Fleet Mechanic
Joined: Nov 2008
Posts: 1,573
Likes: 4
From: Seattle
True, but they're still significant producers. But with domestic shale production at a profitability level at around $60/barrel, it sure seems like they could have an effect.
Post Fiend
Joined: Mar 2007
Posts: 26,966
Likes: 50
From: Texas
it averaged that price through the 90s and early 2000s. they base their costs to produce on the current cost of operation (ie $4 diesel). they do the same on the market. the price of gas may drop $.40 on the market, but if it jumps back up the following day/week, we never see a difference at the pump since they trade futures.
if the price falls to ~$30 level and holds, the cost of everything will readjust and the USA will be in a better place.
that was always the problem a few years ago. Notice, you do not hear much about OPEC any more.
the main reasons:
1.) Saudi Arabia
2.) Texas and N. Dakota
5 years ago, the USA averaged 5 million barrels/day production. Today, it is close to 9.
if the price falls to ~$30 level and holds, the cost of everything will readjust and the USA will be in a better place.
that was always the problem a few years ago. Notice, you do not hear much about OPEC any more.
the main reasons:
1.) Saudi Arabia
2.) Texas and N. Dakota
5 years ago, the USA averaged 5 million barrels/day production. Today, it is close to 9.
I would say we're in a better place already, but I'm kind of upset that the station I filled up at this morning dropped the price per gallon 9¢ a couple of hours later.
Senior User
Joined: Feb 2008
Posts: 303
Likes: 0
From: Central Washington State
If you head this way Tug, don't fill up till you get here, $2.89 here $2.87 in Eburg, Cash of course.
Lead Driver
Joined: Dec 2003
Posts: 5,250
Likes: 42
But cost getting it out of the ground isn't decided by futures. Buying and disposing of the water used in fracking, along with labor, leases, equipment, etc. do factor into the cost of getting it out of the ground.
I would say we're in a better place already, but I'm kind of upset that the station I filled up at this morning dropped the price per gallon 9¢ a couple of hours later.
I would say we're in a better place already, but I'm kind of upset that the station I filled up at this morning dropped the price per gallon 9¢ a couple of hours later.
agreed.
however, when you consider factors that have a tremendous effect on our economy, fuel prices dominate. the cost of drilling isn't decided by futures, but they still make money since the health of the companies are.
Molon Labe
Joined: Dec 2006
Posts: 5,272
Likes: 1
From: Alaska
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
3 Best / 3 Worst Parts of Modern Ford Ownership
Brett Foote
10 Amazing Upgrades That Solve Common Ford Truck Owner Headaches
Pouria Savadkouei
Every 2026 Ford Engine Explained
Brett Foote
10 Ugly Ford Trucks That We Still Kinda Love
Joe Kucinski
10 Things Every Truck Owner NEEDS (2026 Edition)
Michael S. Palmer
Rezvani's Latest Post-Apocalyptic Monster Is a Ford F-150 Raptor Underneath
Verdad Gallardo
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
Thread Ender
Joined: Dec 2010
Posts: 1,296
Likes: 8
From: SC
I have read that domestic shale production is possibly profitable at as low as $40/barrel.
