Posted on 08/08/2005 9:51:17 AM PDT by M. Espinola
I agree and I believe we have not seen anything yet as far as price increases for oil. I saw something the other day that kind of put in perspective. Oil sells for 18 cents per pint... today's price action has pushed it to 19 cents per pint.
Wishful thinking. Most of the oil that has ever been found is still in the ground. It requires more money to get out of the ground, and oil prices traditionally have not supported the additional investment.
Our prices aren't caused by an actual lack of existing oil, they are caused by man made restrictions in supply. We have declared huge oil-producing swaths of land off limits for drilling. We have elminated refinery construction as demand increases. And we have shut the door to alternative forms of energy such as nuclear.
If reason and common sense could ever sneak past congress without being killed and eaten, the price of energy would be much, much lower and much more stable.
As it is, our current energy policy is essentially a KGB designed plot to destroy us, enacted and crafted by people too stupid to understand what they are doing, still serving a long-dead master.
What do liberals/tree huggers have to do with the price of gas? For simple starters, the over 40 different regional and seasonal blends that must be produced.
Interesting......so if those oil $ are not being used to offset the cost of our efforts, where and who is getting that money? If production is 1 mill/bar per day (which I think is low) in a months time it becomes 30 mil X $ 60/bar which is around 1.2 billion........pretty good cash flow.
What part of my statement was wishful thinking ? Nothing you said alters the fact that current production is slowing while demand continues to rise. I agree that there is a whole bunch of oil in the ground that won't be produced until prices rise and I agree that limiting areas we could explore has hurt our current situation as well. This does not change the fact that production is peaking. We will NEVER run out of oil but the days of cheap oil are coming to an end.
??? Last March, it took about $1.35 USD to convert to 1 Euro. This morning, that conversion took about $1.23 USD.
Nice to see a fellow financialsense.com listener.
financialsense.com is by far the most informative economic website I have seen. It explains quite clearly what is taking place with our economic world.
321energy.com is another excellent website regarding oil.
The inevitable, impending "bust" is going to be disastrous.
From the EIA
http://www.eia.doe.gov/emeu/cabs/orevcoun.html#Iraq
During 2004, EIA estimates Iraqi oil production of about 2.0 million bbl/d, and export earnings of $18.2 billion -- the highest in nominal terms since 2000. For 2005 and 2006, Iraqi oil export revenues are expected to increase slightly, to $19.3 billion and $19.4 billion, respectively.
At the end of June 2004, when the CPA officially handed over sovereignty to Iraqis, the DFI, with assets from oil export revenues of $10 billion, was to be run by the Iraqi government.
Besides the DFI, a portion of Iraq's oil revenues are also obligated to pay for claims stemming from the 1990/91 Gulf War. In 2003, the percent of Iraqi oil revenues going towards such claims was reduced from 25% to 5%.
Oil Reserves
Saudi Arabia 261.7 billion bbl (2004 est.)
Canada 178.9 billion bbl including shale oil (2004 est.)
Iran 130.8 billion bbl (2004 est.)
Iraq 112.5 billion bbl (2004 est.)
UAE 97.8 billion bbl (2004 est.)
Kuwait 96.5 billion bbl (2004 est.)
Venezuela 78 billion bbl (2004 est.)
Russia 69 billion bbl (2003 est.)
USA 22.45 billion bbl (1 January 2002)
So much for John Kerry's assertion that Bush made a deal with a Saudi Prince to depress oil prices for better poll numbers before the election. BTW-the price to extract oil hasn't changed much over the last 5 years. Oil companies, drillers and traders are wetting their pants over this fact. No use in bitching-oil and driller stocks have been a great refuge the last 2 years. One man's misfortune is another's opportunity...
I didn't know anything about this. Is this because of their (liberals) insistence in producing the different blends? Is this necessary or just some BS on their part? If this is playing a part in the ever increasing price than I can understand your annoyance with it.
Can you elaborate a bit more on this?
November 3rd at 9:51am EST, what do I win?
Here's a what-if scenario: What if the price of oil hits a level that begins to cripple the US economy? The US military is still in Iraq. US soldiers are still dying. We're spending huge sums of money to liberate the Iraqis (what is it currently -- $1 or $2 billion a week?). Why shouldn't we take some of that Iraqi oil, if not as "payment" for our expenses, then at least to keep our own economy going. Because if our economy crashes, then the Iraqis will definitely have no hope.
Just a thought. Maybe a bad one. But just a thought.
No need for a terror strike, OPEC is constraining supply and the Envirowhackos have constrained refinery capacity....so November 3rd at 9:51am EST the Nymex spot crude will hit 100 dollars...because we will have to little heating oil, too little Natural Gas, and to little crude to supply the Chinese, this confluence will kick our butt.
There are a great number of young men with about a week's growth of beard and I would bet many of them use colorant to darken their beards. Their women are as scruffy-looking. What does this have to do with the price of crude oil? I don't know, but there is a lot of money sloshing around this town. Housing hasn't bubbled like San Diego. A lot of the money is in rolling stock, and air and rail traffic has suddenly risen since Friday. Is this the last great boom before the bust on 9 Sept?
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