There are 42 gallons of products in one barrel of crude. While oil from various regions have varying properties, on average, a barrel of crude contains about 19.4 gallons of gasoline, 8.9 gallons of fuel oil (used for home heating oil, diesel fuel, and commercial fuel oil), 4.2 gallons of jet fuel, 2.7 gallons of resid (used as industrial fuel), 2.0 gallons of still gas (used for marine transportation or power), 1.8 gallons of coke (mostly exported as industrial fuel), 1.8 gallons of liquefied gas (think propane, butane, etc.), 1.4 gallons of petrochemical feedstock, 1.3 gallons of asphalt, 0.5 gallons of lubricants, and 0.3 gallons of others. The total of these products is 2.3 gallons more than 42, due to reprocessing. The price per barrel is a moving target, but today it hovers around $135. The price of regular unleaded averages $3.88, nationally. The 19.4 gallons of gasoline represents 46% of a barrel of crude, or $62.1, or $3.20 per gallon of gasoline. Add in 60 cents for taxes, 20 cents for refining, and 20 cents for transportation per gallon, and we are up to $4.20 per gallon of gas. It seems possible that the price per oil barrel has yet to be fully represented into the retail pump price.
2023-10-06 - Houston-based APA Corp. said its Permian Basin assets will drive increases in overall production in third-quarter 2023.
2023-11-09 - Sitio Royalties reported that it was selling its “lower-margin” assets in the Appalachia and Anadarko basins and also closed additional Permian Basin acquisitions.
2023-11-07 - With the continued success of its three-mile lateral wells, Williston Basin operator Chord Energy reported higher-than-expected production volumes in the third quarter and is exploring even longer horizontal drilling.
2023-09-18 - Rig counts are falling—a reflection of higher interest rates and labor costs that now affect drilling costs, moving break-even prices even higher out in the price curve.
2023-11-03 - Antero Resources’ management is hopeful the industry’s reduction in rig activity will help “balance” the natural gas market.