WTI crude oil to hit $70 in 2018?? above?

3Roosters

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To those of you with expertise in this industry, thoughts please on how this would affect ND.;:;popcorn
 


H82bogey

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From what I am hearing, $70 or $75 is the magic number to start seeing an increase in projects related to oil and gas. More compressor stations, rail stations, additions to gas plants and other types of related infrastructure. I am not sure if it will increase drilling or not, but I do believe we would see an increase in industrial construction projects out west.
 

huffranger

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Anything above $50 is good. At $65 we are shitting in high cotton, currently Trump is THE man !!
 

Davey Crockett

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I'm happy to see a refinery is getting close to breaking ground at Belfield.





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Keep in mind that roughly 5 offshore platforms produce as much oil per day as the whole state of ND. We are small peanuts in the oil industry, There is a lot of ocean out there.
 

Migrator Man

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We might hit $80 but it all depends on the OPEC cuts. Its all about supply and demand. Higher prices leads to much more production so producers can cash in on the high prices, but that is risky because too much production outpacing demand will cause the prices to collapse again. Any day OPEC can decide cancel their cuts and that volume will not help sustain these high prices. Either way ND is far away from another big boom. There are much more lower cost plays to invest in. Slow and steady sounds better to me!
 


eyexer

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it doesn't cost near what it used to here in the bakken. everything is much cheaper from drilling to fracing to lease operating expense. I also don't think you'll see any more infrastructure built regardless what the price does unless the rig count goes up. which it probably will. we will probably be looking at 70 rigs drilling by first of July if things continue down this path. Activity has continued to increase out here even with the cold ass winter we are experiencing. I think we will see a continued increase in activity as long as oil steadies or continues to go up. But don't look for massive increases in production from here anymore. Oil companies don't want to drive up the oil stocks.
 

tikkalover

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My office is across from the CP switchyard, and over the last month to a month and a half, there are quit a few more oil trains moving.
 

Allen

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OPEC, schmoPec. Even those dumb bastidges have to know that it's better for them to sell 50 barrels of crude at $75 a barrel than it is to sell 75 barrels of crude at $50.

Remember during the run-up to the last boom when OPEC leaders were worried far more about the price of crude than they were about maintaining market share? Yeah, 5-8 years ago they thought $80, then $90, then $100 a barrel was the "right" price. If they would have been successful in stopping the U.S. from developing its own resources we'd be at their new right price of $150/barrel.

The problem is they can't trust each other to not cheat the quotas.
 

Davey Crockett

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Is it safe to assume that with one slip/stroke of the tongue Trump could drop the bottom out of the barrel, Or.... the other direction $ 140 plus oil again ?
 

Fisherman25

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it doesn't cost near what it used to here in the bakken. everything is much cheaper from drilling to fracing to lease operating expense. I also don't think you'll see any more infrastructure built regardless what the price does unless the rig count goes up. which it probably will. we will probably be looking at 70 rigs drilling by first of July if things continue down this path. Activity has continued to increase out here even with the cold ass winter we are experiencing. I think we will see a continued increase in activity as long as oil steadies or continues to go up. But don't look for massive increases in production from here anymore. Oil companies don't want to drive up the oil stocks.

It won’t go back to the crazy prices we use to see, but with increasing oil prices, service companies will increase rates once again. They have to. Most of them are struggling as bad as some of the oil companies.
 


dean nelson

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At this point OPEC is pretty well fucked. They are in a total damned if you do damned if you don't setup. if they don't start pumping the US and Russia will take up more and more of their market share and one by one their economies will start collapsing because they're getting pretty low on cash and if they bump they under cut their own price and get shafted well the Shale plays will just go back into hibernation like they did last time and then just pop back out like a gopher in spring as soon as the price goes back up.
 
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Mort

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At this point OPEC is pretty well fucked. They are in a total damned if you do damned if you don't setup. if they don't start pumping the US and Russia will take up more and more of their market share and one by one their economies will start collapsing because they're getting pretty low on cash and if they bump they under cut their own price and get shafted well the Shale plays will just go back into hibernation like they did last time and then just pop back out like a gopher in spring as soon as the price goes backup.

ha ha ha...way to simplify with full description in terms of hunting rodents....ha ha only nean delson
 

Wildyote

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I'm happy to see a refinery is getting close to breaking ground at Belfield.





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Keep in mind that roughly 5 offshore platforms produce as much oil per day as the whole state of ND. We are small peanuts in the oil industry, There is a lot of ocean out there.

We are second only to Texas in proven reserves and production. Offshore wells are big producers but cost of production is so much higher off-shore than a Baaken or Eagle Ford well!
 

BrokenBackJack

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$60 oil is a good money maker for the State of ND. While above that might be good for the State it is NOT good for my pocket book! I would rather have money in my pocket book :;:exactly rather than the State of ND as they just seem to waste it once they get it, typical government! ;:;banghead
 

eyexer

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there is going to be a balancing act take place over the next twelve to eighteen months. this includes oil price, price of contractors, price to drill a well and bring it to completion. the greedy contractors will be short lived. the ones in good financial shape that don't rape will be the ones that stick around the longest.
 


fj40

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It is getting busier. Frac crews are in short supply and until they catch up, I don't see a big increase in rigs. Rigs today can do the work of several just a year or two ago and rig count is not going to be indicative of activity. If it even looks like it may get real busy, I'm moving to Wisconsin.
 

eyexer

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Drilling , production , transportation and the whole smear. I know it varies but What are the claims in price per Barrel where a well breaks even ?
they don't really talk in those terms anymore because the costs have changed so dramatically. And production is all over the place. With the company I work for our lease operating costs in the bakken (once well is actually producing)are roughly $8 a barrel. Most wells are paid for in 6 -8 months. The cost to operate that well after that point is what really matters. That's the long term outlay. Our lease operating costs on a company wide average around around $9.80. So the bakken is cheaper than our other fields. At $55 oil it would take 90-180 days to pay for that well based on what our average wells initial productions have been.
 
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