Posted on 12/02/2008 11:51:28 AM PST by NormsRevenge
COLUMBUS, Ohio – Oil prices dipped again Tuesday and gas prices hit their lowest levels since January 2005 with the United States officially in a recession.
Analysts say prices at the pump may be bottoming out, though demand could fall even further in January with job losses reducing the number of people who drive to work.
Gas prices fell for the 20th week since the July 4th holiday and hit $1.811 per gallon, according to the government's Energy Information Agency.
Auto club AAA, the Oil Price Information Service and Wright Express said prices fell 0.8 cents overnight to $1.812, down 62.4 cents in the past month and $1.249 in the past year.
(Excerpt) Read more at news.yahoo.com ...
“I disagree. It should be modified to “Drill here, Drill now so we aren’t caught with our pants down next time.””
The risk to invest must be based on the lowest predicted product prices.
Oil has cycles from $150 to below $50 per barrel in less than one year. Economically recoverable reserves are now way down, worldwide.
Projects which at $80+ looked viable, now are deleted from capital budgets. Heavy oil, oil shale, tar sands, horizontal drilling, deep water drilling, secondary and tertiary recovery operations, etc.
Likewise liquid transport fuels from coal, certain solar, wind, nuclear projects might get deferred or cancelled.
This has happened over, and over. Prices rise enough to encourage alternates, only to see oil prices drop back down to levels at which alternatives don’t pay off.
* For me, alternatives mean those enerygy sources not involving imports of oil. So domestic oil is an alternative.
Thas gotta be an ‘above’ ground redneck millionaire’s mobile pool......
Yes, as I read my posts on this thread I realize I am full of sh!! on this. Sorry about that. I am violating my own understanding of economics and sliding into a pit of conspiracy territory.
Pull me out guys!
“Drill Here, Drill Now is Dead.”
on the other hand, so are the economies of venezuela, Iran and all the other opec racketeers.
I heard a discussion of a ‘floating tax’ that would keep oil at the $100/bl level.
The Fed is losing ALOT of revenue when consumption is down as low as it has been, not to mention all the lost revenue from the closing of thousands of trucking companies.
The Beast must be fed.
That doesn't change what the actual cost of drilling oil is however, and it's a downright LIE to claim there isn't "easy" oil to be had anywhere in America, and very profitable even at $25 a barrel. Even the tar sands are profitable at $25 a barrel. Traders caught with their hands in the cookie jar trading oil futures(and responsible for driving those prices almost 10 times their value) have to pay for their greed, not me.
That is the REAL issue, falling tax revenues, nothing else.
Things were fine when oil was at $25, it’s just that governments get spoiled and quickly accustomed to the windfall.
That’s why the first thing Obama will do is double gas taxes in the name of “global warming”.
“Drill Here, Drill Now” was dead on arrival on Osama Obama’s big day in January.
yeah, there’s nothing much we can do now...all we can hope for is that the rest of the world fares even worse under Obamanomics. All of those socialist countries that leach off our success will have to reform or die.
I did not say that there is no “easy”oil to be found in the U.S.
Go down to S. Louisiana and you will find lots of drilling activity today. However, in the late 1980’s and 1990’s there was hardly any drilling activity in the area of the U.S. where it is cheapest to drill.
That will happen again if oil hits and maintains a price of around $25.00.
Yeah, see my post 43. My brain was taken over by aliens ealier in the thread. I have re-adjusted the tin foil and am thinking for myself now.
And hang on for a while, with all the “get rich quick” (or so they thought) flight by night oil companies folding up their card tables, you’ll be able to buy up all the equipment you need to start your own oil company.
That’s the nature of the business.
Those evil oil companies. Have you noticed when one station’s prices go down, the rest do too?
We need to stop buying gas on Thursdays to send a message to stop this collusion!
But currently, the cost of finding, drilling and producing an oil field has gone way up. It has started to fall already with the drop in the price of materials. The drill rig rates that tripled in the last couple years will fall, but not until many more rigs become idle.
LOL!!!
Oh, there is no doubt of that. But there will be plenty of wells uncapped and producing during those “lean times”.
There are hundreds of thousands of capped wells waiting for the future when things are “right”. They drill about a hundred a day in Northern Alberta and Sakachewan.
I was there in 1986 when the market crashed.
I lost my job, the man I worked for lost everything, his house and three rigs that were repossessed just to lay flat in a field for years, the bank did not even take them to scrap. They just rusted away.
I would drive by them once in a while and each time it was like being kicked in the nads. My boss, the guy who owned the company had to drive past them almost every day. I can’t imagine how it made him feel.
You don't understand. You don't have the big picture. Of course you are wrong. If you weren't wrong then someone smart would be.
One hundred new wells every day? LOL!!!
With oil at under $50.00 a barrel there will not be an expansion in domestic drilling no mater who holds the White House and Congress.
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