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And welcome you are listening to watching the Financial Survival Network. I'm your host,
Carrie lets Well. Energy, green energy, all the rage, but
for the time being and for the foreseeable future, your lifestyle, the country's
prosperity, the world's prosperity depends on what happens in the oil patch, particularly
crude oil and natural gas. And our next guest, Decarter, expert in
both the calls Texas his home and he's right in the middle of the oil
patch. See, it's great to have you back. And it's been a
little frantic, crazy time in the oil patch recently. Huh reb he has
curing back. I appreciate it. We've yeah, he's been a little bit
crazy out here. The all prices have gone up and down in sideways for
about the last six months or so. But we're settling in right now.
All prices are flectuating. We're in between seventy seven and seventy eight dollars a
barrel. But there's a good deal of concern out there about where the price
is going on in your future. As of yesterday, for exactly the all
prices for barrel posted his first weekly loss in about five weeks. As as
worries are beginning or continuing about the economic outlook, which are so by the
baby on demand worries what the demand is going to be for the summer time.
So so right now we're in the mid seventy range for crude oil,
and we're in the low two dollars range for that gass. There's the right
urgins there again. Well, you know West Texas Intermediate for June delivery was
down about one and a half percent the delivery and this is important the deliveries.
When you're talking about the price, you've got to also mention how the
delivery is coming out. On Tuesday, which the year it was about seventy
seven dollars a barrel, it was down five and a half percent for the
week. The delivery was jin Brent crude, which is another one of the
it's the global benchmark which runs it was. It was eighty dollars and seventy
cents of barrel on Tuesday this week, but it was down two and a
half percent on the delivery, leaving it down more than nearly six percent or
the week. So there's the delivery problems our concern right now going into the
summer months. You know, gasoline rose about old one percent over this last
week, but there's a lot of concern out there about the consumption in the
pursuable future due to the fear of apostle recession, high cost of traveling right
out last it's almost to flight at Dallas from Midland as it is to drive
out there because it casts of gasoline. So there's some concerned out there.
Obviously, analysts are worrying about the ongoing monetary policy tightening about the Fed and
Central banks, but they sparked a global economic slowdown and those are party to
blame for the olds losses this week. But we're seeing some chain things in
the industry right now, and it really has a lot to do with what's
going on in the government and how they're operating things and what they're doing right
now. We're seing some changes right now. Yes that is for sure,
a lot of turmoil, a lot of uncertainty, and there doesn't seem to
be any end to it in sight. You know, we had some we
had some optimism last week when China uh their economic recovery, when they when
they lifted the year COVID nineteen curves that they had in late twenty twenty two,
and they lifted those, there was some optimism out there about the way
things might come with the patroleum industry. That went down pretty quickly. I
mean the medium term, the market is just too complacent. When production saut
Arabia and another a number of other OPEC countries, they're scaling back in May
this year, and I think the market's going to be noticeably undersupplied, which
is going to be interesting. And you know what happens when the undersupply of
oil comes up. Gasoline prices go up because there's less oil to make gasoline,
and so you're going to see a price up the barrel, go up
and at the pulp, and I think that's going to happen in the month
of May and June this year. So we're seeing an increase in the price
due to the fact that they're scaling back the supply the OPEC countence, particularly
even though in the United States we're doing some great things. We have one
refinery in Texas in Houston Area, one of the largest of the seven major
refineries in the country, has added two hundred and fifty thousand barrel of day
capacity for gasoline for oil. So that's like a new refinery going online basically
without having to jump through the hoops that the government provides our request requires for
starting refinery. So I think we're going to see some assistance there, but
it's not going to offset the downturn with what Opeki is going to do and
what Saudi Arabia is going to do. Yeah, well, it's definitely.
I read about the expansion taking place. It's like the largest refinery expansion in
the past decade. And since you can't build a new one, you kind
of have to expand the old ones. I think they call it refining,
and that's what they're doing. They're adding capacity. A lot of those smaller
refineries you're are increasing their capacity, and larger ones are adding a lot more
capacity. But I'm gonna see some about I think the daily ALSOP fly on
the second half of twenty twenty three is likely to be around old one and
a half to two million barrel shy the demand. So if that's the case,
you're going to see prices go up. So if you're going on a
vacation, so when you plan to drive, be prepared to play a little
bit more for it. That means also the jet fuel is going to go
up, so the price of airlines are gonna ticket's gonna as well. So
we're going to have an interesting summer I think from the oil standpoint, Yeah,
I think it's going to be interesting alright. And uh and I don't
think basically people out there are prepared for it. No, they're not.
I totally agree with that. I uh, they we've kind of fallen into
this period of being too relaxed with the way things are going in and the
fact that Opak is dropping their production and Saudi Raby's drocking their production, Russia
is dropping their production. That's going to put a bind on everything. And
I'm not sure that the guys are geared up quickly enough to offset the difference.
And in fact, I'm not even sure that the government is going to
allow them to increase the production to that level. The drilling situation is interesting.
There's about three hundred and seventy one rigs in Texas going around about three
hundred thirty those byway or right in my neighborhood. I can go out in
my backyard practically and see half a dozen level but we're just not drilling it.
We're adding maybe one rig a week. That's not enough to keep up
with the downturn and what the production supply will be coming up for twenty points,
right, So we're gonna have some real interesting things to take place be
to a now on the end of point points. Well, you know,
the interesting thing day is that since gas prices were decontrolled, oil prices are
decontrolled by Reagan, and that I want to say seventy eight, but I
don't think that's right. Eighty two, maybe eighty two, eighty one ad
two. We haven't had any lines at the gas pumps other than due to
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throw now more than ever. No, we haven't had and we I don't
know that we'll see that but to that critical situation. But it's going to
be to the point where people won't be driving as much. And then I'm
not going to be traveling as much as the summer calls, either the prices
will be too high to pay or the gasoline will not be available due to
the downturn in the supply. So we're going to see you better plan your
racations will in advance because you're going to see some changes. I think the
summer in this fall, and the supply and demand or the demand's gonna go
down due to the fact that people just aren't traveling a smutch. People just
don't drive around and jump in their car and take off, like in Texas,
if you're going to go someplace. For example, I live in Midland,
Texas. We're in the middle of nowhere, and that's why it's called
Midlands Ech. We're three hundred miles from Fort Worth, one hundred miles from
San Antonio, three hundred miles from El Paso. We're right out in the
middle of nowhere. So anywhere we go to go to do anything, we've
got to drive three hundred miles or fly. So the consumption of oil out
here is just to be harbor because it's far to go to getwhere. But
we're going to see that all over the country. If you're gonna take vacations
on the East Coast, you're going to see some up downturn and traveling because
the price of ball and that's to the lack of lack of having supplies.
The supply is going to go down. I think around a million to a
half to two million barrels a day uh sometime by the end of mayor or
Earty June. Really so yeah, I could easily could see a twenty five
percent to snap of in oil prices if I would think you could get up
around eighty five to ninety. And I also think that as an advisor,
I'm a retirement advisor and financial advisor. That's going to mean there's going to
be some opportunities out there in investments and and UH production companies that are producing
the oil of the gas because they're they're going to be working harder to keep
up. And I think there's going to be some opportunities for investments there.
But right now we're looking at working with our consumers and it's it's so day
to day situation. So let's talk a little bit about nad gas. It's
down in the lot right now. I think we said two twenty three and
per mcl. Yeah, So what's going on there? And why is it
just the result of a warm winter globally? Oh? I think they had
a lot to do with it, and we didn't have a big winner this
year. And I think the price there is going to be and the price
on it on natural gas is going to also increase a little bit. And
they're the reason that is, more and more people are converting uh their situations
to natural gas. It's a it's a clean energy. It doesn't provide as
you as we mentioned off the air only if it doesn't provide the power perhaps
running your vehicles, but it's certainly good for your own situations like that,
and we're seeing a lot of people converting to natural gas. We don't have
the winters that you that some people have up in the Northeast when you're in
Florida, I'm in Texas. We don't have those kind of winters. They've
been in the oil but they're converting to natural gas. So we're going to
see a lot and more people using that. It's a clean energy, as
I said, it's one that doesn't have a carbon footprint like gasoline does.
So you're going to see more and more of that, which means that there's
a larger demand. Obviously, the price is going to go up a little
bit, but it's still a very realistically inexpensive method of getting energy. So
I'm I'm a big fan of natural gas all right, and overseas, it
also depends upon europe winter because right with the Russian embargo and all that,
we are shipping tons of you know, many many ships of liquefied LNG gas
and and then that turned out they didn't need as much of it, and
that really had an impact because hey, we're the ten bucks mcf, you
know it did. It had an impact, which comes where we had too
much of it, and when you have too much, the price goes down.
That's just the way it is to its supplied demand. But we are
still seeing a lot of ships going out at Houston Port right now was liquefied
natural gas and for Europe, and that's one of the major markets for the
gas land and the oil companies here in West Texas. We our oil out
of the ground and pipeline it to Houston would is refined into two gasoline or
natural gas and then it shipped out. We're still seeing that we're not getting
as much out because there's so many regulations now on what we're only shipping of
liquefied petroleum gas. So that's that's been down during the Trump years. That
it was an unbelievable opportunity there and it was going quite well, but the
regulations now they've been placed on it has caused a reduction in the amount that
can be sent. So it's just another good reason to find someone that will
open up their eyes and see what the value is so we can get back
to being oil independent, dependent independent again instead of dependent upon foreign countries.
So let's hope that happens. Since in the foreseal future you and I can
talk about that and have a lot of fun with that down the road.
Yeah. Well, one thing I did want to talk to you about is
the age of fracking is coming to an end and these wells that we're producing
a thousand barrels a day or at several hundred are going to be stripper wells
soon. What's going to replace it well? And in fact, that's where
the access drilling is coming in. A lot of the companies are after drilling
for new wells and try it because we're going to see fracking. I think
it'll come to if not come to an end, it's going to come to
a tremendous down and fracking. Over the next couple of years. They're producing
new methods for extracting oil. Every day, somebody's coming up with new ideas,
and the fracking thing has had such bad publicity. Although most people don't
understand how fracking works. It's not a big explosion down that it blows up
the land. It's a very small explosion that opens up the cracks and in
the rocks of the oil can flow. It's not a big deal. But
at the same time, it's coming to an end, and they're floodingsfing back
with different types of chemical flooding situations. So I think we're going to see
more of that, by the fact, I know we are. We're seeing
companies now that are gearing down their fracking operations and gearing back up for the
flooding operations situations to extract from the ground. So I think you're right.
And the next couple of years we probably won't be talking about fracking. We'll
be talking about other methods of extraction, but fracking will still be a major
factor in that gas production. Oh absolutely absolutely. I don't think we're going
to see that curved curtailed for the foreseeable future. I don't see that happy
at all. Yeah, all right, Well, d how was it again?
Where we find your work? How we connect with you on the web?
Yeah? In fact, we're at Carter Financial dot com and you can
go there and see who we are and what we do with our retirement planning,
and there's always some interesting articles. You can go to uh sound income
source and dot com and check us out there and see what we've got going
with the organization that I'm with there, and it's it's worthwhile to go and
read some of those articles that are added to that page on a daily basis,
So I recommend people go there and take a look. All right,
and go over to our site Financial Survival Network dot com. You'll find a
link to D's site in the show notes. Click it, you'll get right
to a site and while you're there, sign up for a free newsletter.
In the meantime, if you got any questions for myself or D financial planning,
financial prognostication, whatever they might be, just shooing us an email KL
at carry lets dot com. We'll get you an answer quick. D always
a pleasure. Thanks for stopping by. Hey, it was follow me.
We'll look forward to talking to you again sometime in the near future. Thanks
for listening to carry Lets's Financial survival Network, your solution to today's trying times.
For the latest, go to Financial Survival Network dot com. Financial Survival
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