@socalgolfguy,
socalgolfguy;17306 wrote:RUGGONACRY - Here's another twist - my community is building 97 new homes, all solar powered with the latest in solar technology. All the houses will be on the local power grid but most days the meter will run backward. In an area where power bills run up to $500 a month, homeowners will save $6,000 annually - question is, how does this technology affect the oil and natural gas industry?
To start call me Ryan.
The price of gas wont go down, but the price of heating oil will.
A stock barrel of oil (crude oil unrefined) is 42 gallons. Out of that 42 gallon barrel, 28 gallons of mortor fuel is made (your unleaded gasoline your diesel) the 14 gallons goes to other uses.
On a side not Smaller oil companys Prefer the price of Crude to be MUCH less than what it is now. WHY? Because Oil is a GLOBAL market comodity, meaning. if Oil Goes up, our gas prices go up if gas prices go up hauling other supplies to differnt locations cost more because it costs more to fill their tanks up.
This means the steel we have to buy for the wells goes up to 3 dollars a foot, and so on.
The price of that gallon of milk is effected as well.. Truckers have to bring the milk to the store right.
BIG OIL doesnt feel the effect a penny differnce or a quarter dollar differnce in these items does not effect them when you are talking billions of dollars, it effects us because none of you in here makes billions of dollars. If you do you wont miss 1 million, send it to me.