U.S. Crude Hits New Record-($ 45-50/Barrel Here we come baby ! ! !)

Reuters ^ | Sunday May 16, 10:14 pm ET | n/a

[Flavius]

Reuters U.S. Crude Hits New Record Sunday May 16, 10:14 pm ET

SINGAPORE (Reuters) - U.S. light crude futures (CLc1) struck a new all-time record in electronic trading on Monday on worries that global supplies will strain to meet soaring demand. The market tipped an intraday peak at $41.59 a barrel in electronic ACCESS dealings, surpassing Friday's peak at $41.56 during floor trading in New York.

Prices have pushed to their highest levels since U.S. crude futures were launched in 1983 by fears that world supplies may be hard pressed to meet surging oil demand, which has been driven by healthy global economic growth, especially in the United States and China.

Oil markets are also concerned of possible sabotage attacks on vital oil infrastructure in the Middle East, home to two-thirds of global reserves, which would further test supplies.

[deport]

Thanks Joe.... Glad you could help point out the importance of Texas to trade worldwide and it's dollar impact....

International City

SINCE 1976, the number of foreign-owned companies located in Houston has more than doubled. Approximately one-third of the manufacturers in the Houston area have foreign dealings. English companies (105 of them) make up more than one-quarter of foreign-owned firms in Houston, while there are 80 Japanese, 48 German, and 40 French firms. It is estimated that foreign firms provide 20,000 jobs for Houstonians.

In addition to the firms, there are 14 foreign trade, investment and tourist offices in Houston. In April 1980, Rumania became the first Eastern Bloc nation to open a permanent trade office in Houston. Fifty foreign consulates reside in the city, including the first U.S. Consulate opened by the Peoples Republic of China in the fall of 1979.

So vitally important is Houston's technology and expertise is the search for energy that an important relationship has developed between the oil-rich Middle Eastern nations and Houston, earning the city the title "Middle Eastern capital of the U.S." In fact, Houston handles more than half of the $7 billion annual U.S. trade with the Middle East.

[Flavius]

wow mind blowing... thats some great info

[jackbill]

I understand that oil sand in Canada (Alberta) is cost efficient at $30 per barrel.

Maybe. I remember back in the Carter years a lot of money was spent researching this, but a lot of oil was discovered, and the price went down. I heard something like $50 back then, I think, but I'm not sure. Maybe your figure is closer.

I own "units" (shares) in a Canadian energy trust, with substantial gas deposits in Alberta. The Alberta government recently shut down some gas producers (not mine) because they made retrieval of the oil from the adjacent sands less efficient.

One of the financial programs recently did a story on the oil sands, and they mentioned the $30 price. I assume that productivity might be the reason.

[oceanview]

to a point - speaking for myself, I'm going to ask to telecommute one day per week now, this is getting crazy.

[aft_lizard]

I believe and maybe I am wrong. But if oil prices continue to climb the motorists will refrain from extra curricular driving. They may instead of taking seperate cars take one car to work. It may not be alot of gas saved on a daily bases but if they import more than we use then eventually the market will be oversupplied and prices will be forced lower to accomodate the glut in the market.

[Flavius]

There was this movie one time ... Called Mad Max where people were driving around trying to get some gasoline and they were even fighting for it...

Good thing that was movie

[Flavius]

Parker Drilling Co (PKD) On May 14: 2.93 0.01 (0.34%) Parker Drilling Co
1401 Enclave Parkway, Suite 600
Houston, TX 77077
Phone: (281) 406-2000
Fax: (281) 406-2010
Email: firstname.lastname@parkerdrilling.com
Web Site: http://www.parkerdrilling.com/

DETAILS
Index Membership: N/A
Sector: Energy
Industry: Oil Well Services & Equipment
Employees (last reported count): 2,920


REUTERS ABRIDGED BUSINESS SUMMARY
Parker Drilling Company is a worldwide provider of contract drilling and drilling-related services. The Company's primary operating areas include the transition zones of the Gulf of Mexico, Nigeria and the Caspian Sea; the offshore waters of the Gulf of Mexico, and on land in international oil- and gas-producing regions. In addition to operating in the Gulf of Mexico, Parker Drilling's rental tool business operates in the United States land markets of Texas and the Rocky Mountain region. The Company's marketed rig fleet of 79 rigs, consisting of 27 barge drilling and workover rigs, seven offshore jack-up rigs, four offshore platform rigs and 41 land rigs, enables Parker Drilling to provide a variety of drilling services to oil and gas operators in numerous locations worldwide.


... has something to do with haliburton ... i think i may buy some yay...

[inflation]

No wal-mart for me. Too dirty, I can't understand how Target can keep a 5 year old store looking cleaner than a 9 month old wal-mart store. It's like wal-mart uses the cheapest floor tile know to man.

[Jorge]

no dude thats not my budget... wish it was but no

I know what you mean. I cut WAY back on clubbing when beers went over $2. I rarely go to restaurants and save around $40/month by bringing my lunch to work.

most of my excess cash finds its way into speculative stocks... cause well i have a gambling problem... but thats another story...

I don't have enough to invest in stocks but I love gambling at the casinos. It's not a problem because I know when to stop. I took Trump for nearly $1000 on the $1 slots a month ago and haven't been back since.

[SamAdams76]

Not really. But I do need to eat and wear clothes. Well maybe I don't need to wear clothes but then I'd get arrested and would have to pay even more money to get out of jail and pay lawyers.

[ambrose]

I'm of the opinion that Soros is buying up oil futures...

[Flavius]

Soros is buying our guns, on another note
he started with $ 5000.00 when he got of the boat... and made billions...

I was very dissapointed to find out that he went out of his way to take away personal freedoms...

Very sad thing ...

[job]

Here are some thoughts from an-ex petroleum geologist, now atty.

When I started out in petroleum industry, around 1986, the majors started pulling out of the Mid-Continent, and began moving to gulf coast because the reserves weren't big enough. That left independants to develop places like Oklahoma, Kansas, Mississippi, Co, Utah, Wyoming, etc. Then the price was so low, that a 50,000 barrel prospect was not enough return for the risk (used to be 1 out of 10 was a dry hole, 1 out of 8 if you had seismic). At $10 per barrel, upside was only $500,000, and cost to drill and equip was about $160,000, so barely a 3:1 payout on a 1 in 10 chance. So even the independents were not able to develop the Mid-Continent.

Then what happended to the industry. The domestic industry went to zip. Many geologists and engineers left the industry for other professions. So, the industry shrank. In a simplistic way, that is the reason Halliburton is in Iraq, it has no peer to do the kind of work required, because all the other companies either died out or got bought up. Rigs were shipped to Canada or the middle east.

Now, 40 dollar oil. 50,000 barrel reserves are suddenly over a 10 to 1 payout. Things are economical to prospect in the US. But I imagine, for technical and field hands, there won't be enough folk to staff the need.

[RichardW]

Gas is still dirt cheap compared to the relative price in 1979 when it was about $2.90 adjusted for inflation. Our vehicles are much more fuel efficient. We are paying about $4 for a gallon of milk. Bread is over $2 a loaf. I can remember when I could buy a beer for 50 cents and gasoline was 17 cents a gallon in 1972. Those days are over. There is probably enough oil, gas and coal right here in the good old U.S. of A to last centuries if we have the economic incentive to get at it. There's no free lunch.

[loulou]

I live in west texas (West Texas Crude) drilling is going as fast as possible. We lost so many experienced workers during the bust, it is hard to find workers and steel for platforms is impossible to get at this time. America needs to stand firm on keeping our jobs at home, maybe steel wouldn't be a sortage if we had done in the past... we don't need to rely on mideast for oil....

[GailA]

Don't know. Taxes state and federal have to be factored in too. Fed tax 14.4 TN state tax 21.4 that's 29.8 cents in taxes here in TN, that makes gas in my littler burg acutally 145.1 if you take away the taxes. I figure that half the cost of the remaining price per gal is about evenly divided between the enviro whackos and the gas companies.

Can't prove it, but it is what I think.

I also complain about hanoi john's jet, yachts and 8 cars. Then I tell folks about his $1,000 hair cut...and about how much it cost just to fire up his jet to fly his hairstylist out to cut his hair. LOL

[Rodney King]

At what price per barrel does shale oil or synfuel from coal become competitive?

As I understand it, Synfuel from coal is anywhere between 60-75/bbl depending on who you ask. Shale oil would be less than that, but don't know how much.

[Sacajaweau]

I've cut my mileage in half (though I know not everyone can do it) just by combining errands and eliminating those "I have to get out trips". Getting out of here now means going outside and laying down on a blanket in the sunshine till the stress drifts away.

[GailA]

OPPS typo it's 39.8 cents not 29.8.