Posted on 01/16/2007 1:09:18 PM PST by 2banana
Can't post but good news as Saudi Arabia's oil minister rejected calls for more production cuts...
http://www.bloomberg.com/apps/news?pid=20602099&sid=ap9i3C_FTkR4&refer=energy
That's what's driving prices down now--there is all sorts of new oil sources coming on line now, increasing oil supply and driving down the price. This ALWAYS happens following prolonged periods of time record high prices.
There must be something wrong with this. I'm sure the lamestream will give us a new angle.
we've been playing this game for decades - the last time oil went high, new investment poured into the sector - only to be wiped out by a rapid price decline. its the same game every single time.
Hint: the alternatives are a LOT more expensive than the oil they are producing for next to nothing right now. Forget that hype about 'we can produce alternative X for $40 a barrel.' Oil at $51.33 won't produce any customers for alternative X. Neither will $70, although it will produce some talk. No customers, absolutely none.
fine, my only observation is that this wipes out alternative source investment. no one is going to invest to develop alternatives, when their target equivalent price is $75/bbl one day, and $45/bbl 6 months later. private sector investment won't enter a market like that - and this helps the entrenched oil interests stay in control of the energy sector.
Commodities speculation was the last driving force with prices. The decline has been due to a mild Winter, causing the speculative market to unload shares while they were still within their profit margin.
They will be ready to open a new buying frenzy soon, when the next shortage comes along on the World market.
those dynamics - only means more government involvement in the sector. the private sector won't invest in a market with wild price fluctuations, especially when capital outlays for major energy projects are massive.
the winter is mild in some parts of the US, in others its quite cold. it evens out.
something else is going on here.
I took that last information I shared from the Wall Street Journal, several weeks ago when prices first began falling.
I am also directly involved with the Oil industry and have inside info on the nature of the market. So the answer is no, there isn't anything else going on here.
http://www.freerepublic.com/focus/f-news/1768510/posts
Oops, looks like they already found their negative angle!
Because that is what the consumers will pay. That and some of the oil the gas came from was more expensive.
Must be that Dem Congress bringing gas prices down. Barf!!!
That didn't take long
hmmm good point- I always make the mistake of thinking a static economic picture
thanks
See post 44.
$1.95 this morning in Central St. Charles County.
No one's going to invest in the energy sector while politicans openly speculate about stealing the "windfall" profits.
All the investment money is either oil company money or gov't money. There is no other.
There is no such thing as the private sector. There are business men and they work in the interstices. Didn't you get the memo?
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