What gas price makes you change your boating habits?

[oramac]

Well, this thread took a turn, so I'll address both directions. Oil is more expensive because global demand is driving up the costs since so many countries are refusing to buy Russian oil. That being said, American oil producers are also raking in record profits, so at some point it'll have to balance out, or we'll slip right back in to recession. The only certain way to do that is more regulation of fuel costs, but that means more government oversight, and I don't event want to get into a liberal/conservative debate.

Beyond all of that, I paid my boat off over the winter, so the $300 per month payment now gets rolled over into the fuel fund, and unless things get really stupid, I should still end up money ahead. So, bring on summer, and I'll see you at Lake Shelbyville, IL this July.

 

[HawaiiBreeze]

In a Nut Shell...none, can't take it with you, spend it while you can enjoy it.

 

[drewkaree]

We bought an old 35' sailboat for those that don't know, lol.

When did this happen? I think this is the first we're all hearing about this!

 

[drewkaree]

I'll live on Ramen and Ketchup samiches before I give up boating due to gas prices....

 

[swatski]

All due respect - your comment is misleading and inaccurate stating that “””Gas at the pump has to be $5 for fracking to work”””. - fracking (hydraulic fracturing) actually helps LOWER the cost of fuel in reality. It allows companies to more easily recover more of their hydrocarbon reserves. This eases the supply issues.

The real reason fuel prices are up is because the administration is highly restricting domestic companies in combo with sanctioning Russia…and the worst part lifting sanctions on Iran and requesting OPEC produce more…. Importing oil is more costly than domestic production.

Oh and don’t forget how the Keystone pipeline was cancelled.

Really?

Ok, than. Please educate us.

So, exactly at what point (please use approximate $ per barrel numbers in commodity markets, or $ per gallon number at a gas pump) does extracting oil from bitumen sand (keystone pipeline), or fracking, make economic sense (= a company engaged in the process can actually turn a profit).

Please do not hide behind thinly veiled political talking points and/or stupid sound bites. We are all adults here. Just give us straight numbers. I would like to learn.

Thank you.

 

[AZMark]

Probably no change for me, we don’t burn much in the boat.
Might change venues a bit if it got to like $7-8 or something. Our favorite summer lake to get away from the crowd here is a full gas tank (25 gallons) drive away. Hopefully if gas hit that point the closer lakes would be a little less busy as an offset.

 

[Mesa50]

Really?

Ok, than. Please educate us.

So, exactly at what point (please use approximate $ per barrel numbers in commodity markets, or $ per gallon number at a gas pump) does extracting oil from bitumen sand (keystone pipeline), or fracking, make economic sense (= a company engaged in the process can actually turn a profit).

Please do not hide behind thinly veiled political talking points and/or stupid sound bites. We are all adults here. Just give us straight numbers. I would like to learn.

Thank you.

There are multiple factors that control oil prices. Abundance is the at the top. When the pipeline was canceled, speculation became another problem. Absolutely every industry that is dependent on petroleum based products, bought double or even triple the normal supply in an effort to get ahead of future price increases. This also contributes to greater shortages. The company I work for normally keeps a 3 month supply of vinyl, sealants, solvents, etc. We upped that to around a 7 month supply to get ahead of future price increases. Oil is used in so much wider spectrums than just fuel, so any perceived threat of future shortages causes an immediate ripple effect. When oil leases were made easier to get, foreign competition immediately dropped prices on oil exports to make it less attractive for American companies to expand. Any, and all increased production, or even the threat of it, will drive prices down. So any increase in fracking, offshore drilling, etc will bring prices down. The price per barrel argument doesn’t really have any affect on (when) it makes sense to increase methods of production. It’s whatever people are willing to tolerate. The reduction of production, is 100% political, and the volatility it causes financially benefits those pushing for alternatives. So, it’s impossible to discuss without a little bit of partisan politics.

 

[swatski]

There are multiple factors that control oil prices. Abundance is the at the top. When the pipeline was canceled, speculation became another problem. Absolutely every industry that is dependent on petroleum based products, bought double or even triple the normal supply in an effort to get ahead of future price increases. This also contributes to greater shortages. The company I work for normally keeps a 3 month supply of vinyl, sealants, solvents, etc. We upped that to around a 7 month supply to get ahead of future price increases. Oil is used in so much wider spectrums than just fuel, so any perceived threat of future shortages causes an immediate ripple effect. When oil leases were made easier to get, foreign competition immediately dropped prices on oil exports to make it less attractive for American companies to expand. Any, and all increased production, or even the threat of it, will drive prices down. So any increase in fracking, offshore drilling, etc will bring prices down. The price per barrel argument doesn’t really have any affect on (when) it makes sense to increase methods of production. It’s whatever people are willing to tolerate. The reduction of production, is 100% political, and the volatility it causes financially benefits those pushing for alternatives. So, it’s impossible to discuss without a little bit of partisan politics.

 

[Liveto99]

Really?

Ok, than. Please educate us.

So, exactly at what point (please use approximate $ per barrel numbers in commodity markets, or $ per gallon number at a gas pump) does extracting oil from bitumen sand (keystone pipeline), or fracking, make economic sense (= a company engaged in the process can actually turn a profit).

Please do not hide behind thinly veiled political talking points and/or stupid sound bites. We are all adults here. Just give us straight numbers. I would like to learn.

Thank you.

I really stopped watching the news about a year ago. And I don’t wish to get into any of this debate but as an answer to your question somewhere I remember the price point was about $60 a barrel to make extraction from the oil sands profitable. I am fairly heavily invested in ExxonMobil and have been invested in Exxon for over 30 years I’m not totally non partial.

 

[Liveto99]

We bought an old 35' sailboat for those that don't know, lol. We topped off the diesel tank last Fall before haulout for $15. That was the first time in 2 years I put fuel in the boat. Our marina is a 10 min. motor out and then set sail. We do go out a couple times a week at the least except during blueberry season.

Having a blast with her toes in the water. Priceless!

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The wind is free.

Just remember to get something when you’re fuel if it’s diesel so you do not get algae growing.

 

[84rzv500r]

 

[tabbibus]

No change for me. Probably go to the marina in the tesla instead of the expedition, but otherwise same.

 

[flyingnugget]

Well, My wife and I were talking just this morning about boating and I said, worst case, I have 50gals in the boat now from this winter storage and that its good to go. That's my hedge for the summer LOL... Probably wont do as much tubing and surfing but we will see. Only live once. Definitely will have the gas "tip" jar out this year .

But then again, the kids are getting older, starting to get part time jobs and one will soon be off to college before I know it. So, If I can stomach the initial gas pump shock, Full speed ahead on making memories and enjoying life. I'm not getting any younger and being on the water and boat is honestly my happy place. I'll fight to not have that taken away from me.

 

[84rzv500r]

Mr Fusion was the first thing that popped into my head... no change for me either boating is just dropping something in the canal off the davits form the results of {all my Boats} ∩ {boats that run} ∩ {boats that have gas in the tank}... today that is easy... 3 boats, 2 that have gas, 1 that runs = Seadoo Sportster (using the definition of boat Very Loosely)

 

[Farny]

Well, I just saw a prediction that oil could go as high as $240.00 a barrel.

Highest I have heard is potentially $300 . But that is hard to fathom.

 

[HangOutdoors]

I have 50gals in the boat now from this winter storage and that its good to go.

LOL, I was thinking about the same thing. I am full up with some treatment in the tank as well. Wondering how long I can make that last.

 

[AZMark]

Can I change my answer, just actually got gas and that $125 on the screen was a shocker

 

[Dixemon]

Well, My wife and I were talking just this morning about boating and I said, worst case, I have 50gals in the boat now from this winter storage and that its good to go. That's my hedge for the summer LOL... Probably wont do as much tubing and surfing but we will see. Only live once. Definitely will have the gas "tip" jar out this year .

But then again, the kids are getting older, starting to get part time jobs and one will soon be off to college before I know it. So, If I can stomach the initial gas pump shock, Full speed ahead on making memories and enjoying life. I'm not getting any younger and being on the water and boat is honestly my happy place. I'll fight to not have that taken away from me.

Ditto man, agree completely. Memories for my kids are priceless.

 

[Farny]

Really?

Ok, than. Please educate us.

So, exactly at what point (please use approximate $ per barrel numbers in commodity markets, or $ per gallon number at a gas pump) does extracting oil from bitumen sand (keystone pipeline), or fracking, make economic sense (= a company engaged in the process can actually turn a profit).

Please do not hide behind thinly veiled political talking points and/or stupid sound bites. We are all adults here. Just give us straight numbers. I would like to learn.

Thank you.

Ok first off - no political talking points - but policy affects economics even if some want to deflect from that fact. as I write this I am in midland Texas and just visited 12 rigs this week. So I know a bit about cost of production and field development economics.

Every play (geological /geographical area where hydrocarbons are produceable from) is different - ex. when commodity prices are high ($100+ oil prices) Oil sands mining is economic to do. Below that it is not. In North Dakota - economics are around $70-$80 bbl to break even. Texas Permian basin $50bbl breakeven. That breakeven is not considering inflation so likely it’s higher currently (those were 2019 numbers). Oil companies make about the same margin @ $2.75 gal and $5 gal. Because the cost of crude to refine goes up, that cost increase is reflected at the pump.

Bottom line is US production is restricted currently and our government is asking Venezuelan and Iranian producers to make up the difference? Sorry but that’s just not in the best interest of the country.

Cost of production is skyrocketing due to inflated costs of building materials ie steel. Exploration and Production equipment etc.. again due respect and not trying to be an ass just stating what I know to be true. It’s not as simple as saying $5 at the pump makes it economical. Gas prices at the pump are a reflection of supply not an indicator of profits.

Again - fracking lowers the economics of recovery and provides more access and production therefor eases supply demand strain. This translates to easing/lessening gas price increases. If there was no fracking, oil could be as high as $400 bbl and us would be almost entirely dependent on foreign oil ( maybe u remember the gas lines)?

Bottom line - overall the oil and gas industry has some of the lowest profit margins of any industry.

 

[RobbieO]

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