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100LL price


M016576

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It all depends. There are a lot of operations that only need $30/bbl

On the other hand, a lot of these South TX and ND operations didn't make financial sense until oil hit $70 and $80/bbl to begin with.

The laws of economics at work...it made free market sense, and now we got a glut in supply

And we have been "fracking" since the 1940s.

One of the reasons I sold my M20K was to invest some more money into a small oil production company I am a partner in. Our last "fracking" operation of a well cost $1500. Even the small-time oil companies do it.

If someone uses the word "fracking", you can be assured they probably don't know what they are talking about. But it makes for nice media headlines.

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And 93 octane non ethanol fuel is $2.89 a gallon in rochester MN, and all we would need to run it is liquid cooled cylinder heads and fuel pumps in the tanks for positive pressure and a controlled delivery system to ensure quality. We would then be lead free!

I know this is unrealistic give the burecratic red tape....but would be nice!

100ll I the area is $5.25

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And 93 octane non ethanol fuel is $2.89 a gallon in rochester MN, and all we would need to run it is liquid cooled cylinder heads and fuel pumps in the tanks for positive pressure and a controlled delivery system to ensure quality. We would then be lead free!

I know this is unrealistic give the burecratic red tape....but would be nice!

100ll I the area is $5.25

Why not just buy some octane booster and then you don't need to change anything? Or is the lead providing something other than higher octane?

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We just went through having to change suppliers at our airport due to a contract renewal.  One thing that hasn't been mentioned is that the supplier gets to put a expiration date on the fuel.  Our old contract with Chevron said it was good for 1 year after delivery.  The new contract they offered us said it was only good for 6 months. They would not budge on this.  In order to get a good price we have always purchased a entire truck load, which we could sell within a year.  However the new contract said the fuel was only good for 6 months and we can't always sell a truckload in 6 months. This isn't a problem with a large FBO, but can become a huge problem for a smaller place that doesn't use as much fuel.  We ended up going with a different supplier who still had a 1 year expiration date.  I had never heard of expiration dates on 100LL before this.  My tanks set full for 2 years without flying and the engine seemed to run fine on it.

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With regards to the economics of extracting oil and break even numbers, and this is just talking about top tier domestic explorers, $38/bbl is just about as good as there is.  As an energy consultant, I know this is a good number.  Some smaller exploration companies will beat this number, but the barrels they are putting on the market do not influence the price that much in the big picture.  However, there are some top tier companies that will need to be in range of $60+/bbl to break even due to coming to party late and paying premiums for leases and development cost.  Consumers should enjoy lower energy cost for most of 2015, but as some drilling slows in the US and capital expenditures are reduced, we will see the cycle swing the other way as production increases stall and surpluses diminish.  This is exactly what the Saudis are hoping for.  

 

The company that I'm contracted to is one of the best out there for optimizing the economics in the field of horizontal drilling and completions, i.e. hydraulic fracturing, and we're going to hold drilling levels in 2015 the same as 2014, but there will be others that have already starting scaling back drilling activity.  I realize that it's hard to feel sorry for "Big Oil" but we need to support efforts at home to continue to drill and yes, frack here in the U.S. to continue to become energy independent and free of OPEC's grasp on our pocket books.  The EPA, Sierra Club, and some in the present administration are not exactly supporters of the energy revolution that was taking place so we'll not get any help from them.  I'm a free market supporter and do not advocate price supports, but I would at least hope that the government will get out of the way and let us do what is best for energy independence here in the U.S.  

 

We pilots will enjoy some cheaper gas for a while, but unfortunately, it will eventually be back up sooner or later.  Ok, I'll get off my soapbox now.

 

Regards,

Don

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