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Get paid to fill-up?

LOL we don't fill up at the pumps with crude oil.

Crude is typically purchased ahead of time.
IOW, I place an order now for oil to be delivered in 30, 60, or 90 days.
If I'm an oil producer and can't sell future orders, do you think I'll continue to pump it out of the ground?
The only scenario that would make that rational is if they desperately needed the cash flow and with the gubmint throwing liquidity at folks, I don't see that happening.

Fuel will get cheaper, and the 3-2-1 crack spread is already below break even. Losing money on every bbl, but making it up in volume ;)
Having negative months or quarters is nothing new to that industry. They will make and sell fuel even if it costs them money to do so.
The fuel producers will keep producing to meet commitments and needs, but barely.
They have knobs to turn and won't significantly over-produce.
if you check the current gasoline and distillate inventory levels in the US, you should see that they've actually fallen in the past week in anticipation of reduced demand.
Besides, a very large chunk of what you pay at the pump goes die-rectly to the gubmint in the form of taxes. have you even known the gubmint to give up tax revenue?

I predict that before things get too bad, Saudi A and Russia will make nice-nice and cut production.
Or one or both will go tits up.
Either way same result.

Remember, in the mid 1980s, SA and the soviet union got in a similar pissing match and SA over-produced until it led to the fall of the USSR.
I doubt Russia will hold their breath long enough for that to happen again.

Worst case scenario would be complete political destabilization of the middle-east and eastern European continent.
That would be way worse than any over-hyped virus. If you were to loose sleep over something, that would be it.

[QUOTE=sammyg2;10789072]LOL we don't fill up at the pumps with crude oil.

Yes..I realize that.SmileWavy (Bubblin' Crude..-$1.99/gal)
I just wasn't aware that it was in such a spiral.

(lose)

[QUOTE=stevej37;10789084]

Quote:

Originally Posted by sammyg2 (Post 10789072)

LOL we don't fill up at the pumps with crude oil.

Yes..I realize that.SmileWavy (Bubblin' Crude..-$1.99/gal)
I just wasn't aware that it was in such a spiral.

(lose)

Didn't intend to come across snarky but I can see how it might look that way.
sorry bout that.

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NP...I'm just glad that on top of everything else...gas is very affordable.
$1.54 here in MI

So Saudi Arabia will be calling 1-800-Got-Junk soon?

I figure SA can hold out longer that Russia, but we'll see. They're in better shape than they were in the 80's.

Quote:

OPEC's membership began to have divided opinions over what actions to take. In September 1985, Saudi Arabia became fed up with de facto propping up prices by lowering its own production in the face of high output from elsewhere in OPEC.[20]

In 1985, daily output was around 3.5 million bpd, down from around 10 million in 1981.[20]
During this period, OPEC members were supposed to meet production quotas in order to maintain price stability; however, many countries inflated their reserves to achieve higher quotas, cheated, or outright refused to accord with the quotas.[20]
In 1985, the Saudis tired of this behavior and decided to punish the undisciplined OPEC countries.[20]
The Saudis abandoned their role as swing producer and began producing at full capacity, creating a "huge surplus that angered many of their colleagues in OPEC".[21]
High-cost oil production facilities became less or even not profitable. Oil prices as a result fell to as low as $7 per barrel.[20]

[/B]
World energy consumption, 1965–2013, showing oil demand falling significantly in the early 1980s
OPEC had relied on the price inelasticity of demand of oil to maintain high consumption, but underestimated the extent to which other sources of supply would become profitable as prices increased. Electricity generation from coal, nuclear power and natural gas;[22] home heating from natural gas; and ethanol blended gasoline all reduced the demand for oil.

USA
New passenger car fuel economy in the US rose from 17 miles per US gallon (14 L/100 km) in 1978 to more than 22 miles per US gallon (11 L/100 km) in 1982, an increase of more than 30 percent.[23]

The United States imported 28 percent of its oil in 1982 and 1983, down from 46.5 percent in 1977, due to lower consumption.[2]

The 1986 oil price collapse benefited oil-consuming countries such as the United States, Japan, Europe, and developing nations, but represented a serious loss in revenue for oil-producing countries in northern Europe, the Soviet Union, and OPEC.

In 1981, before the brunt of the glut, Time Magazine wrote that in general, "A glut of crude causes tighter development budgets" in some oil-exporting nations.[7] Mexico had an economic and debt crisis in 1982.[26] The Venezuelan economy contracted and inflation levels (consumer price inflation) rose, remaining between 6 and 12% from 1982 to 1986.[27][28] Even Saudi Arabian economic power was significantly weakened.

Iraq had fought a long and costly war against Iran, and had particularly weak revenues. It was upset by Kuwait contributing to the glut [29] and allegedly pumping oil from the Rumaila field below their common border.[30] Iraq invaded Kuwait in 1990, planning to increase reserves and revenues and cancel the debt, resulting in the first Gulf War.[30]

The Soviet Union had become a major oil producer before the glut. The drop of oil prices contributed to the nation's final collapse.[31][32]

the Wik

I think I saw a barrel of crude on ebay - starting bid of $1.00 and there are no bids.

Significant world "sheet hit the fan" stuff right there:

OPEC got weak and ended up being a shell of it's former self
Mexico went into recession
Venezuela started it's downward spiral into the abyss
Iraq invaded Kuwait, and we all know how that turned out
Fall of the soviet union
Saudi Arabia dropped from being world leader country

All because they couldn't play well with others and got greedy.
yes, Saudi Arabia shot themselves in the foot but they're still all go-zillionaires.
Lots and lots of bad stuff happened to bad people. the stuff history books are made of.
We came out of it smelling like a rose but under different circumstances we could have gotten the poo all over us.

I haven't been around as long as some of you old farts, but even I've had enough years to know the level of dis-function in OPEC is comical. My grandfather always said if they ever came to agreement and stuck to it, the world would be screwed.

40 years later and they can barely decide where to hold a meeting, let alone make a decision and stick to it without back stabbing.