Latest / Financial Survival Network / Oil Shortage Coming with Dee Carter #5792

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Oil Shortage Coming with Dee Carter #5792 · Financial Survival Network

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