Iran says oil may hit $100/barrel-(thats about $4/gal for home gamers)

reuteurs ^ | Aug 4, 200 | Reuters

[Flavius]

NEW DELHI (Reuters) - Iran's Deputy Oil Minister Mohammad Hadi Nejad-Hosseinian said on Friday global crude oil prices could touch $100 a barrel on geopolitical tension and soaring winter demand.

"There is still a possibility of crude reaching $100 a barrel due to geopolitical problems worldwide and peaking of winter demand," the minister, in the Indian capital for two days of talks on a proposed $7 billion gas pipeline, said.

He did not see the possibility of Iran withdrawing crude supplies from global markets in the event of U.S. military action against Tehran over its controversial nuclear program.

Concerns over Iran persisted as its president, Mahmoud Ahmadinejad, insisted on the country's right to produce nuclear fuel, despite a United Nations resolution demanding that Tehran suspend its nuclear activities by August 31 or face the threat of sanctions.

In the Middle East, the situation remains tense as hostilities between Israel and Hizbollah raged on despite efforts by the international community to agree a ceasefire. Traders fear the conflict could spread to Middle East oil producers.

Israeli warplanes pounded buildings in Beirut, which it said housed Hizbollah offices as both sides threatened to escalate the war. Hizbollah leader Sayyed Hassan Nasrallah threatened to hit Tel Aviv if Israel struck at central Beirut.

An Iranian official warned oil prices could hit $200 if international sanctions were imposed on his country in its nuclear dispute with the West, though analysts shrugged off the remark as saber rattling.

Saudi Arabia, the world's biggest crude exporter, believes oil should not be used as a weapon even if the conflict between Israel and Hizbollah escalates, its foreign minister said this week.

Adding to worries over supplies, an Iraqi pipeline carrying crude from the country's northern oilfields to Turkey's Ceyhan port was bombed on Monday, pushing back the planned restart of exports along the route.

© Reuters 2006. All Rights Reserved.

[backhoe]

I have covered, ( Or, as Seamole calls it...-backhoe's pseudoblog--...-more- ) pseudo-blogged, this subject for years-- My tongue-in-cheek collection of energy-related links:

Sticker Shock-$3 a gallon gas? Click the picture:

And kindly note, and note well-- the first reply to this post ( when gas was $1.45 a gallon ) was snarky... so, who's laughing now?

Vest-Pocket Summary:

1- drill for gas and oil like crazy- onshore, offshore, and in Alaska
2- go nuclear for power
3- convert stationary plants to clean coal technology or Next-Gen Nuclear
4- slash taxes and regulations like crazy

Our consumer-based economy is driven by and dependent upon readily-available, reliable energy-- choke that off, and we'll all be back to using one rotary dial phone in the dining room, watching one TV in the living room, and driving one car per family-- probably a Hudson Hornet or a Nash Metropolitan...

We need to

1) end the nonsensical ban on offshore drilling off California and Florida--read and weep:
Castro Plans to Drill 45 Miles from US Shores, But We Can't

2) build a lot of next-generation nuclear power plants, not just for electricity, but for any process requiring heat, power, or steam.
And if we replaced our existing nuclear plants with this one... there would be significant benefits.

3) end Jimmy Carter's idiotic ban on recycling nuclear waste, and reprocess the stuff rather than fighting over where to bury it. Europe has done this for decades.-- what to do with spent nuclear fuel? Answer here: http://www.freerepublic.com/focus/f-news/1468321/posts?page=50#50  Hattip: Mike (former Navy Nuclear Engineer)

4) use the 300-500 years worth of coal we have on our own land, using the new clean-coal technology.
-Clean Coal Centre--

5) and finally, there's nothing wrong with conservation, we should all practice it- but you can't conserve your way out of a shortage. You have to produce more. Nor is there anything wrong with "alternative" energy sources- except they don't supply the vast ( not to mention readily-available and affordable ) amounts of power we need at a price competitive to more conventional sources.

Then again, there is this to ponder:

Energy from the Restless Sea

Energy From the Gulf Stream
http://www.energy.gatech.edu/presentations/mhoover.pdf

More:
Tidal energy farm proposed for Vineyard Sound

We do need to get serious about this before we get strangled by a bunch of petty thieves and dictators who don't like us much.

[BunnySlippers]

It's almost $4.00 now anyway ...

[cripplecreek]

The Iranians say a lot of things.

[Vision]

We need to kill these terrorists and stabilize the energy supply so the world can get back to daily business instead of having to waste our time with these loons.

[satchmodog9]

We don't need to get serious, our reps need to get serious. As long as energy can be used as a political issue, I see no end to this problem.

[mysterio]

Yesterday they said $200. Which is it? Let's just make it a cool million.

Yeah, let's keep using oil as our main energy source so we can make Chavez and Iran even richer!

[Ron in Acreage]

Either our reps support domestic drilling, nuclear power etc. or we give them the boot. This should be the number 1 issue this november.

[Einigkeit_Recht_Freiheit]

I am already paying $6.25 a gallon here is Germany.

You learn to live with it. Take the train when possible, drive an efficient vehicle.

[Einigkeit_Recht_Freiheit]

Domestic drilling is a short term fix. It should be combned with an Apollo program for energy independence.

That means all available means and a long-term time horizon. That is nuclear, clean coal, wind, solar, biofuels and EFFICIENCY.

All America would be on board.

Only W.'s paymasters in the oil industry do not want it.

[mware]

Gas hits $4 a gallon than the feds need to get rid of the gas tax.

[COEXERJ145]

Only W.'s paymasters in the oil industry do not want it.

Oh please. Taking a play from the DUmmies?

[Einigkeit_Recht_Freiheit]

Explain to me how it isn't the case?

[Ron in Acreage]

Why is domestic drilling a short term fix? Foreign drilling has been our economic lifeline since the combustion engine was invented. "Short term fix" is the DNC talking point. We need to do it all. Whatever it takes for those Islamofascists to shove their oil up their asses.

[mbynack]

At what point does it become cost effective to replace the current regime in Iran?

[Ron in Acreage]

Maybe if Germany drilled for their own oil you would only be paying $3/gal. Nevermind, it's only a short term fix, and you apparently love paying $6.25.

[Einigkeit_Recht_Freiheit]

How long do you consider long-term?

The whole idea of renewable means it is renewable.

If there is a fixed amount of oil in the ground and consumption continues to increase, eventually you run out.

Seems to me the US has at most 30-50 years worth and then the problem starts again. Why not just solve the problem over the long-term and make it easy?

I say drill. But combine the drilling with a program that gradually and economically lowers and then eliminates oil consumption. If both take 30-50 years that is perfect. Virtually zero economic distruption combined with increased security.

If you just drill, and make no other moves and hope the muzzies come to their senses or disappear, you are in the same situation as before.

Why don't you care about the next generation of Americans?

[VeniVidiVici]

Only W.'s paymasters in the oil industry do not want it.

Blow it out your ***. This gets old. Right up there with "BushCo".

[Einigkeit_Recht_Freiheit]

Ron,
1. there isn't much oil in Germany - in fact virtually none.
2. The 6.25 is half in taxes. The price of oil is global, the rest is taxes.
3. There are a lot of taxes in Germany I do mind, the oil one isn't actually one of them. It is totally my own choice whether and how much of it I pay.

[Einigkeit_Recht_Freiheit]

Blow it out your ***.

A logical, intelligent and respectful answer from an individual who is obviously thoughtful and well-informed /sarc