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Oils Well That Ends Well . . . ?

April 21, 2020 02:00PM avatar
Hi, All -

With oil reportedly now going for -$37 a barrel – that is, producers with excess output on their hands paying $37/barrel to have it hauled away, would it make economic sense for the C&TS to move all the available tank cars over to Antonito so they could be loaded with crude shipped in on the SL&RG, and then hauled back to Chama for storage adjacent to the loading dock until the price goes back up a year or three from now?  IIRC, the capacity of the narrow-frame cars is roughly 6,000 gallons and the GRAMPS cars are similar, so the gross income would be approximately 6,000 gallons per car / 55 gallons per barrel × $37 per barrel = about $4,000 per car, or over $32,000 gross if all eight currently operational cars could be used, plus the income from selling the oil eventually, minus the cost of two round trips – empty and full – from Chama to Antonito.   Would this be worth the effort??

- Roosso (MUY) Loco
Subject Author Posted

Oils Well That Ends Well . . . ?

Russo Loco April 21, 2020 02:00PM

Re: Oils Well That Ends Well . . . ?

Greg Scholl April 21, 2020 02:16PM

Not to be a wet blanket, but...

Russ489 April 21, 2020 02:37PM

Re: Not to be a wet blanket, but...

MD Ramsey April 21, 2020 02:46PM

Re: Not to be a wet blanket, but...

Greg Scholl April 21, 2020 02:55PM

Re: Not to be a wet blanket, but...

usmc1401 April 21, 2020 04:23PM

Re: Thinking outside the Box - er, Tank . . . smoking smiley

Russo Loco April 22, 2020 08:16PM

Re: Not to be a wet blanket, but...

DanS April 21, 2020 04:51PM

Re: Not to be a wet blanket, but...

rdamurphy April 22, 2020 01:16PM

Re: Oils Well That Ends Well . . . ?

Brian Norden April 21, 2020 04:40PM

Re: Oils Well That Ends Well . . . ?

Will Gant April 21, 2020 04:56PM

Re: Oils Well That Ends Well . . . ?

Chris Webster April 21, 2020 07:56PM

Futures Markets

hank April 21, 2020 08:26PM

Re: Oils Well That Ends Well . . . ?

rdamurphy April 22, 2020 01:04PM



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