The call to “Drill Here, Drill Now” is falling by the wayside. If Obambi seals ANWAR and bans offshore oil the SPECULATORS will jump back into the market and we will see $75 per barrel oil. If we are smart enough to start drilling programs then we should see oil prices stay in the $60 to 70 range for the next 18 to 24 months.
If supply and demand is allowed to dictate price we may see oil selling at $50 to $60 range. Iran, Venezuela and Russia will do all they can to drive up prices. If the attempt to drive up prices doesn't work many expoiting nations will start cheating on their quotas to make ends meet. If they can't drive up prices and make more money selling less oil they will have to cheat by increasing their export volume and making less per barrel while sellong many more barrels just to cover their expenses. Quota breaking may work in the short term but as more oil will flows into the market the prices will drop again.
“The call to “Drill Here, Drill Now” is falling by the wayside. If Obambi seals ANWAR and bans offshore oil the SPECULATORS will jump back into the market and we will see $75 per barrel oil. If we are smart enough to start drilling programs then we should see oil prices stay in the $60 to 70 range for the next 18 to 24 months.”
Looks like the threat of drilling bans is not having a significant effect on prices yet. I expect a jump though at the first really cold spell when people start thinking heating oil.