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East Penn natural gas pipeline


C1erArt

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If we just pumped shit into the ground that turns to oil after a couple decades we'd be good.

 

 

Oil is fascinating. The price for a barrel of oil was over $80 a barrel and often over $100 from 2011-2014. Domestic oil producers in the Gulf of Mexico via off shore drilling along with fracking up in North Dakota saw a major boom. For a time Williston North Dakota had the highest rents in the nation and Walmart was even paying $20+ an hour for associates. Then Saudi Arabia faced with intense competition of US oil production decided to ramp up supply. Anybody whos studied basic economics knows that if demand remains constant but supply increases prices will drop. Due to infrastructure already in place and large oil reserves under the sand Saudi Arabia can produce oil for about $10 per barrel. Cost to produce oil through fracking can be $30-$50 per barrel depending on if wells are already in place. Currently the cost of a barrel of crude oil is about $42 up from the low $30s earlier this year. That means North Dakota, Gulf of Mexico and Alberta oil production is not profitable like it was a few years ago which has meant layoffs and reductions in productions. They're sitting on large oil deposits and would rather it hit the market when prices are higher just like any commodity.

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Do tells us more douglas

Here's a good example of how the lower price of oil has helped and hurt our economy.

 

The average cost to produce a barrel of crude oil through fracking is $40...North Dakota at its peak was over 1 million barrels per day. There is somewhere between 3 and 4 billion barrels of oil in the Bakken formation of North Dakota, Montana and Saskatchewan. In 2013 and the first 3/4 of 2014 oil was $80-$110 per barrel.

 

At $80 a barrel North Dakota oil was profiting $40 million per day. That's somewhere north of $10 billion per year. Money which greatly benefitted north Dakotas economy due to high wages, demand for more infrastructure, services, construction...ect. Williston North Dakota with surplus money even built a $70 million rec center and repaved all their main roads to better accomadate the increased car and truck transport. It was a modern day boom town.

 

With $40 a barrel oil they are just breaking even. Those still employed aren't getting the crazy overtime they once received and construction on most projects including hotels, apartments and strip malls have ground to a halt. Exorbitant rents while still high have dropped several hundred dollars a month and the man camps to accomadate transient laborers have disappeared. One oil prices rise again the boom will continue.

 

For the rest of Americans the half price gas is saving the average car owner $800 per year. That additional buying power is mainly going right back into the economy as the average American doesn't save much money. With the lower cost of oil businesses are saving money on transport costs and since nearly everything is shipped on a truck at some point in the supply chain inflation has been low. The US dollar is also incredibly strong right now. That makes foreign goods even more attractive.

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De facto new trails at blue (except for the massive pipe thingy in the middle). Pipeline cuts were done all over the Catskills complete with water bars. Still maintained waiting for future gov to lift the ban. Been waiting for the dump of the decade to hit that stuff.

A big rail in the middle for the park rats!
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I thought that the oil in the Dakotas was in the oil sands which made it far higher in price to extract. I wasn't aware it was through fracking. Isn't fracking mostly used for natural gas?

 

Sands is Alberta, Dakotas is shale.

 

Lots of peeps knew there was shit in there but without ERD and really propants you couldn't get the shit out. Basically you drill a long horizontal string, jack up the pressure with drilling mud and use the propants to hold open already occurring seams in the rock formations and collect the gas or liquid that is forced out.

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