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North American drilling: Is the sky the limit?
World Oil ^ | August 2006 | Robert Curran & Sergio M. Galina Hidalgo

Posted on 08/30/2006 6:28:19 AM PDT by thackney

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1 posted on 08/30/2006 6:28:20 AM PDT by thackney
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To: thackney

Supply and demand.

China and India.

Gas prices falling in my town.

I can live with all that.


2 posted on 08/30/2006 6:33:17 AM PDT by PeteB570 (Guns, what real men want for Christmas)
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To: thackney
For example, there's a well-known price ratio of 6/1 for oil-to-gas on a Btu basis (MMBtu/bbl). Over the last 10 years, on a price basis, this ratio has been near 7.9. However, today's oil price is about 11X that of gas, which should mean that either oil will come down, or gas will go up. However, gas storage is now 35% above the five-year average. Hurricanes or something else must disrupt supply, or demand must appreciably increase with a cold winter, to work off these very high storage levels. So, since it's unlikely that gas prices will go up, all that's left is for oil prices to go down, to get the ratio a little closer to historic norms.

It's called a racket.....enjoy yor $3.00 pump prices...they're here to stay...

3 posted on 08/30/2006 6:46:23 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: ScreamingFist

Oh yes, oil companies can charge any price they want. And in 1998~99 they must have wanted oil at $10 and less a barrel. </ sarcasm>


4 posted on 08/30/2006 6:48:17 AM PDT by thackney (life is fragile, handle with prayer)
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To: ScreamingFist
enjoy yor $3.00 pump prices...they're here to stay...

Time for a re-post .. gas prices in your area
http://www.freerepublic.com/focus/f-news/1691431/posts
Posted on 08/28/2006

5 posted on 08/30/2006 6:52:01 AM PDT by thackney (life is fragile, handle with prayer)
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To: ScreamingFist
enjoy yor $3.00 pump prices...they're here to stay...

Down to $2.79 in the Philly suburbs this morning. Methinks the fear factor is deflating out of prices lately. Of course, Iran or a real Gulf hurricane could put it right back in - but I figure it was adding a good $.50 to a gallon of gas, half of which is now removed.

6 posted on 08/30/2006 6:54:06 AM PDT by dirtboy (This tagline has been photoshopped)
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To: thackney
I see you live in Alaska....cool...how much was the last check you received from the state for oil profit sharing.....be honest.
7 posted on 08/30/2006 6:55:25 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: dirtboy
Down to $2.79...

For what...diesel or super.....or the regular.

8 posted on 08/30/2006 6:57:17 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: ScreamingFist

$845.76

http://www.apfc.org/alaska/dividendprgrm.cfm

Doesn't come close to covering the inflated cost of living I have compared to Houston. A lot more beautiful and a lot more stable job market. I'm not complaining.


9 posted on 08/30/2006 6:59:39 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

It is still 3.25 in this area for regular unleaded. Northern CA county, we are typically 15 to 20 cents higher than the Sac. area.


10 posted on 08/30/2006 7:00:31 AM PDT by calex59 (Hillary Clinton is dumber than a one eyed monkey with a brain tumor(credit to Harley69))
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To: calex59
The inflated cost of gasoline in California compared to the rest of the US is not due to oil companies but the government California continues to elect.
11 posted on 08/30/2006 7:03:24 AM PDT by thackney (life is fragile, handle with prayer)
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To: Dog Gone

Rigs are poping up out here like mushrooms after a rain.

It is even raining out here.


12 posted on 08/30/2006 7:04:41 AM PDT by razorback-bert
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To: thackney
Doesn't come close to covering the inflated cost of living I have compared to Houston. A lot more beautiful and a lot more stable job market. I'm not complaining.

I understand...lived in Anchorage for a while. I'm in western Oklahoma...and from my front porch I count 7 active rigs....Anadarko Basin natural gas.....they're laying pipe faster than I thought possible.....all this NG is going somewhere.....

13 posted on 08/30/2006 7:05:23 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: ScreamingFist
It's called a racket.....enjoy yor $3.00 pump prices...they're here to stay...

I'm gonna bookmark that one!

14 posted on 08/30/2006 7:09:38 AM PDT by Toby06
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To: thackney; All
So, since it's unlikely that gas prices will go up, all that's left is for oil prices to go down, to get the ratio a little closer to historic norms.

People often forget that demand and supply curves may shift over time. The normal Price-Quantity graph of a demand curve is drawn under the assumption of ceteris paribus (i.e., "everything else being equal"). These other factors include: 1) price of other goods, 2) income, 3) income distribution, 4) population, 5) preference, plus several others. If any of these determinants change, "historic norms" may well be altered permanently. To me, China's entry into the world oil markets affects the demand curve because their presence dramatic changes the population and income determinants of demand. This is also true for India as citizens in both countries experience rising incomes and the ability to buy more forms of motorized transportation. While short-run changes in supply can lower price somewhat, I have a hard time thinking that we can shift the supply curve enough to offset the increasing demand curve. I think we should expect "historic norms" to rise in the long run.

15 posted on 08/30/2006 7:11:09 AM PDT by econjack
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To: thackney

Interesting article but I'm surprized that it mentioned pipeline capacity limits but there was no mention of refining capacity shortages. Is there a bottleneck in the ability to refine crude?
Nat gas prices are fairly low yet there is a bit of recovery of it. What is up in the market?


16 posted on 08/30/2006 7:13:11 AM PDT by posterchild
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To: Toby06
I'm gonna bookmark that one!

LOL...do it. The American people have signaled that they are willing and able to pay around $3.00 gallon....only a moron would LOWER the prices.......Enron wasn't born yesterday..

17 posted on 08/30/2006 7:15:58 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: econjack

I believe Iran shot their load too early in the gas price war.

If they started pulling this in September, it would have had a larger impact on our election.

Speculators are no longer taking Iran seriously, hurricanes are always a factor but again, the left is making it out to be bigger than it really is and the BP pipeline is producing again.

Oil by election day will be 60 a barrel and going down. Gas will be 2.30 a gallon and falling.

The Republicans need to go out and tell the nation that the RATS are using scare tactics and negativity to get back into office.


18 posted on 08/30/2006 7:17:03 AM PDT by EQAndyBuzz (Mediacrat - A leftwing editorialist who pretends to be an objective journalist.)
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To: posterchild

We could more than double our domestic oil production and not reach our refining capacity. We do import refined products but the shortfall there is small compared to our petroleum production.


19 posted on 08/30/2006 7:17:12 AM PDT by thackney (life is fragile, handle with prayer)
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To: ScreamingFist
The American people have signaled that they are willing and able to pay around $3.00 gallon....only a moron would LOWER the prices.......

So why is much of America paying less? And why has it been falling recently?

US Gasoline prices

20 posted on 08/30/2006 7:20:26 AM PDT by thackney (life is fragile, handle with prayer)
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