Posted On: 01/21/2016 11:55:48 AM
Post# of 22855
there are 42 gallons of oil in a barrel which equates to .695 for a gallon of crude oil at today's prices...It's cheaper to produce oil than it is to produce a gallon of milk which based on 2009 numbers is 1.31 per gallon.
out of each barrel of crude oil 19 gallons end up as refined gas and 12 gallons end up as diesel. the rest of the 11 gallons of crude becomes other petroleum products etc. yes milk has to be kept cold and handled properly but oil is far more dangerous to handle and expensive to haul.
IMO Saudi Arabia cannot maintain their level of production they've already put themselves in the red by 5 Billion dollars. Their intention is to kill the fracking market in the US. To counter that effect the US can now sell oil outside of the US.
As far as Iran the sanctions have been in place since 2006 however I'm sure they sold oil to other countries so the Iran affect is negligible. I believe prices of oil will head back between 60 to 80 it may not be in 2016 but 2017 for sure.
out of each barrel of crude oil 19 gallons end up as refined gas and 12 gallons end up as diesel. the rest of the 11 gallons of crude becomes other petroleum products etc. yes milk has to be kept cold and handled properly but oil is far more dangerous to handle and expensive to haul.
IMO Saudi Arabia cannot maintain their level of production they've already put themselves in the red by 5 Billion dollars. Their intention is to kill the fracking market in the US. To counter that effect the US can now sell oil outside of the US.
As far as Iran the sanctions have been in place since 2006 however I'm sure they sold oil to other countries so the Iran affect is negligible. I believe prices of oil will head back between 60 to 80 it may not be in 2016 but 2017 for sure.
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