Posted on 12/18/2008 10:18:13 AM PST by dennisw
Crude is down no matter what OPEC does Because no matter what promises each member makes to limit production and reduce production......
You have a situation where where each OPEC member has to pump and sell much much more to pay for their hare brained schemes. Hugo Chavez and Ahmadinejad come to mind. Pooty is hurting too
In today's dollars that equals $2.13 per gallon. So at $1.63 per gallon (local) gasoline is a bargin.
It’s a great feeling to see your regular expenditures drop so quickly like this.
Very good post, Dennis! .....
You are much smarter than me but lets say you live in China and made 10$ million operating a flat screen TV factory. You will not invest that all in China or re-invest that all back in your factory. Simply too much cheating there. Less rule of law
If I’m this Chinese guy I will diversify abroad and buy TBills in America. Previously these “wise guys” would buy property in US China towns but real estate is awful now. When you seek safety the USD is very good. The Euro and Canadian dollar would also look good. And the safest way to buy into them is via the Central government’s debt issues
Keep going down until the ragheads have to pay us to use it.
How much to put it back in the ground?
Excellent point re: foreign investors who seek shelter in U.S. government securities. I had some clients from Hong Kong who told me the exact same thing years ago.
"You have no idea how corrupt and dysfunctional that place is," they'd tell me. Their particular concern involved the lack of private property rights and complete disregard for patent/copyright rights in China.
Then we can debate bailing out Exxon...
If they could produce something for five or ten bucks and sell it for twenty or thirty you’re claiming they’d go under??
Now when did I say that?
I’m saying that they can’t produce it for that low without losing their shirts, unless the cost of everything including labor comes down with it.
Close. The reason why no drill is because it is not a matter of the expense of drill, drill, drill. Oil companies made big money when price of oil was a lot less than now and could do it again with domestic drilling.
The real reason is because before they can drill, drill, drill they must file, file, file to satisfy EPA and myriad other eco-regs.
Lot cheaper to pay some sand maggots for black gold than to pay lawyers for filling out paper and appearing before panels and being bad-mouthed in the MSM.
IOW - Congress once again has ham-strung an industry with their stupidity and has forced us to be dependent on the whims of potentates who want to air condition beaches and build indoor snow skiing facilities.
Same with manufacturing. Minimum wage laws. No minimum wage laws overseas. Good-bye jobs.
Same with automobiles that Congress who has never run a business or built anything orders car makers to build their product and run their business with a blueprint for failure.
You said — “Close. The reason why no drill is because it is not a matter of the expense of drill, drill, drill. Oil companies made big money when price of oil was a lot less than now and could do it again with domestic drilling.”
Well, if I was not clear, I guess it was probably implied in my comment that I was including the price of oil to the end point of delivering it (i.e., including all the costs).
Now, here’s the thing..., since posters on Free Republic were talking about being able to drill more for oil here (in the U.S. and before the drop in prices) and it was thought (at least, according to the comments and the news articles) that the door was opened to that possibility (the Democrats not opposing it) — then it could be said that at $40 a barrel it is a *much worse* proposition than it was at $140 a barrel.
You see..., the same things that were “operational” back then at $140 a barrel and the hoops that one would have to “jump through” to get this done (i.e., drilling for more oil) — would be the same hoops as right now. But, the economics are much, much worse now.
So, that’s why I would put the emphasis on the *price* of a barrel of oil as the critical factor, rather than the hoops that the companies have to jump through (because it was the same hoops that everyone was talking about a number of months ago at $140 a barrel).
You said — “Now when did I say that?”
I have no earthly idea... LOL.. I guess that’s a problem with having too many windows open at one time. I can’t even figure out how you got there... :-)
Thanks, Forrest.
That drunken tard Ron Wood missed his cue
but great video and tune was written by Don something or other
And the singer looked like a Small Face
I haven’t heard anything about our stockpile of emergency oil reserves lately. Does anyone know if we are buying up all that cheap oil that is under $40/barrel and filling up the underground caverns? Would be a good time to do it in MHO.
People at gold is money forum like them. I go there to get good info even though it's littered with Ron Paul human debris
| More results from goldismoney.info » | |
Also http://www.jsmineset.com/
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.