Oil prices crash 20-30% on collapse of OPEC/Non-OPEC deal, declining demand

[MetroMPG]

Canada's oil patch (Alberta primarily) is currently experiencing unprecedented distress - Canadian oil prices set record lows yesterday at $8/barrel, dramatically below break-even costs:

Western Canadian Select (WCS) was changing hands at one point as low as $7.63 US per barrel, down $4.60 from Tuesday's level. The U.S. benchmark known as West Texas Intermediate (WTI) also fell to below $22 a barrel, a level it has not hit since 2003.

https://www.cbc.ca/news/business/sto...sday-1.5501335

Companies here are going to go bust. "High cost" producers everywhere are in big trouble. This combination of events is the stuff of the Saudis' & Russians' wildest dreams.


This is going to make life hard for a lot of Albertans.

[redpoint5]

Yes, bad timing on oversupplying oil. Perhaps cheap oil will help us quickly recover our economies after the crisis abates (with exception of local oil industry).

I'm hoping for a permanent shift towards telecommuting, and hopefully major reformations in the health industry will occur. My primary gripes are the inefficiency of having many different insurance companies, employer provided health plans, and independent databases for patient records at each and every facility a person visits. Our personal information is replicated many times over, increasing the attack surface for data breaches and just generally being a huge waste of resources.

[serialk11r]

redpoint and oilpan, you guys have 500 gallon fuel tanks sitting around???

I didn't know that was a thing.

[redpoint5]

Originally Posted by serialk11r

redpoint and oilpan, you guys have 500 gallon fuel tanks sitting around???

I didn't know that was a thing.

No, I have a ~300 gallon and a ~200 gallon fuel tank. Just checked today and I've got about 200 gallons left. Trying to figure out what to put it into so I can order 500 gallons. Most of the farm equipment has been sitting too long and probably needs attention before dumping fuel into it.

[Xist]

We used 500-gallon fuel blivets in the Army:

Just $1,000! https://www.arcticwirerope.com/awr-p...el-blivetdrum/

That is perfect if you expect gas prices to increase more than $2 a gallon!

[oil pan 4]

I got my 500 gallon propane tanks ftom the tractor auction for $100 to $150.
The first one I got had a bad valve tree, a new one was around $200. So I got another tank with a good valve for less than the cost of a new valve and it still has propane in it.

[redpoint5]

Like this, but 2 differently sized containers and a more improvised setup.



Set this up back when I had a source for $1/gallon fuel.

[JSH]

Originally Posted by redpoint5

Not the same effect. I don't like investing in commodities for the same reason that I don't like investing in the stock market; it's a zero sum game. For me to profit, it had to come at the expense of someone else.

My preferred investment would probably be real estate.

Real Estate is also a zero sum game unless you are building a new building.

[oil pan 4]

I am rent out a $30,000 house for $650 a month. Been renting it out for almost 3 years.
How is that a 0 sum game?
For me it isnt.

If I had a 130,000 house I could rent it out for maybe $800.
Slum load is where it's at.

[redpoint5]

Originally Posted by JSH

Real Estate is also a zero sum game unless you are building a new building.

Yes, I suppose I was thinking that but didn't make that explicit. Property development is a developing interest of mine.