SHIPPING CEO: Iran Could Send Oil To $440/Barrel

TBI ^ | 3-5-2012 | Gus Lubin

[blam]

SHIPPING CEO: Iran Could Send Oil To $440/Barrel

Gus Lubin
March 5, 2012

US Navy

The scariest Iran scenario yet comes from Bob Bandos, CEO of marine logistics and services company GAC North America.

Bandos tells Pierre Bertrand of the International Business Times:

[T]ankers can haul 1.8 million barrels of oil a day through the strait. If that supply is choked off, the effect would be similar to the fuel shortages of the 1970s - but more extreme, Bandos said.

"That would be nothing compared to this," Bandos said, who added the shortage would be global.

If the 1973 embargo experience repeats itself, the price of a barrel of oil could soar to $440 a barrel.

This scenario is more bearish than we've heard from most banks. Societe Generale, for instance, said oil could rise to $200 were the Strait closed. Of course the $440 figure was picked up by the pro-Iranian Tehran Times (via @DougKass).

[NELSON111]

We'll see.

Marked for future reference...

[blam]

"Interesting little side note? WTF? Relevance? ;o} "

There's always a 'bonus' when reading my posts.

The Strait Of Hormuz must be crossed to get to the Persian Gulf and the oil terminals. Only 10,000 years ago, there wasn't a Persian Gulf.

[blam]

"No way. There is no way we are striking Iran. "

I didn't say who would strike.

[RC2]

This is exactly why the American people need to control their own oil. It is not a world commodity. It belongs to us and OPEC doesn’t tell us what to do. That’s the stance we need to take.

[C. Edmund Wright]

I hope you are wrong, but you may well be on the money.

[Flavius]

How fortunate for us that there is no good way of utilizing virtually unlimited methane hydrates.

In some crazy universe one could use methane hydrates to create ultra clean diesel and with hybrid ele diesel engines even trucks would be getting to 30mpg ranges

But thats crazy talk

[blam]

New TV program Wednesday night:

Doomsday Bunkers
(Discovery Channel)

[JDW11235]

Thanks blam!

P.S. And thank you for all of these articles you’ve been posting. We almost need a “blam” ping list or keyword. You do us all a great service, and I wanted to say “Thank You.” I just worry I miss out on a lot of these articles you’ve been posting, as I have to stumble upon them, lol.

[Tenacious 1]

The Strait Of Hormuz must be crossed to get to the Persian Gulf and the oil terminals. Only 10,000 years ago, there wasn't a Persian Gulf.

The Driver Ant (Siafu), when placed near a lacerated flesh wound will instinctively drive it's pincers into the flesh and pull the wound together. The body can then be removed from the head and the would will remain closed to heal.

[Beagle8U]

I live in a fairly rural area where the majority of traffic runs on just a few main roads.

Gas hit $3.99 Friday and now, other than the to/from work hour, the roads are deserted. Nobody is going anywhere except work.

Two months of $4 gas will crash the economy in rural states where people have to drive long distances to work. All their extra money gets spent on gas and gas related inflation.

[blam]

If Analysts Are As Wrong As Usual, Then Oil Is Headed To $135 Per Barrel This Year

[Capt. Tom]

Very good point. People need to understand that oil is fungible and when theres not enough of it, everyone who buys it will pay that premium.

Since we don't have a Nationalized oil industry in this county, the oil belongs to the oil companies foreign and domestic who are drilling here in the United states.
You and I don't own the oil and neither does the US Govt.
So if the oil companies, can get a higher price outside this country, oil pumped in the United States could be shipped elsewhere. - Tom

[C. Edmund Wright]

Since we don't have a Nationalized oil industry in this county, the oil belongs to the oil companies foreign and domestic who are drilling here in the United states. You and I don't own the oil and neither does the US Govt. So if the oil companies, can get a higher price outside this country, oil pumped in the United States could be shipped elsewhere. -

OK Tom, you are right - but you are scaring me here a bit. Are you saying it is a good thing or a bad thing that we don't have a nationalized oil industry?

And wouldn't more supply solve the problem anyway?

[blam]

"The Driver Ant (Siafu), when placed near a lacerated flesh wound will instinctively drive it's pincers into the flesh and pull the wound together. The body can then be removed from the head and the would will remain closed to heal. "

There you go.

See what I mean about a bonus...thanks.

Now, If I told you I have an aspirin tree in my yard, what kind of tree do I have?(Preppers ought to know this.)

[Beagle8U]

Willow

[blam]

"Two months of $4 gas will crash the economy in rural states where people have to drive long distances to work. All their extra money gets spent on gas and gas related inflation. "

(ahem)The Chevy Volt people won't have this problem, will they?

[blam]

AYE.

[Beagle8U]

No those volt people won’t, they don’t live in rural states.

[Dr. Bogus Pachysandra]

Ahhhh! Willow bark tea! Been around a long, long time!

[Capt. Tom]

OK Tom, you are right - but you are scaring me here a bit. Are you saying it is a good thing or a bad thing that we don't have a nationalized oil industry?

I don't believe we should have a nationalized oil industry.

The oil companies have to do a balancing act, because if they appear to be too greedy, and the price of gasoline at the pump skyrockets, nationalizing the oil industry is a tailor made issue to demagogue. Perfect for class warfare. There are a lot more voting Joe-six packs in the country than millionaires. And there is nothing that appeals to most voters like voting themselves some one else's money.- Tom