Posted on 04/12/2008 7:20:50 AM PDT by kellynla
ping
For all those claiming to predict oil prices 12 years away, ask how they did predicting prices 5 years away starting in 1993 and again in 2002.
We heard the same about tech stocks and real estate.
This is not too far from reality.
Because the Stock market has lost much of it’s revenue, it has been transferred into physical trading commodities like Gold and oil; Hard currency, which will be protected by those who control the money. Oil in itself has become money, a currency that is being used and is irreplaceable. So naturally the value will keep going up. Gold is in the same category.
More the effect of war and other international politics than the industry itself.
Supply limited / increased demand = Higher Price. ...Econ 101 Page 1.
When will America wake up and relaize that there is plenty of oil, It just needs to be drilled and refined. The scarcity of oil is a myth.
I have a difficult time buying what you just said.
To begin with, it is becoming more and more difficult to find and drill for Oil as each year goes by. The supply is also being depleted.
Of course, the technology has provided us with methods to keep on exploring and drilling, but the costs have gone up accordingly.
Of course prices fluctuate based on immediate situations, but the overall trend over the last two decades has been a steady increase in value per barrel. That trend will not change.
and add corn...since we merely human looking for a quick buck...even a plain ol’ every day farmer can see the dollar signs on that commodity...less soy, wheat, rice, etc...we will see lots of corn turned into fuel...
Hear me now; understand me later.
AND ... enough oil drilling/refining politicians to tell the anti's to pound sand.
Refineries in the USA are running about 83% of capacity.
This is total crap! There are a huge number of new technologies and new oil fields that will be coming online during the next few years.
NO...it is more than that...one of the biggest group of retiring industries is the oil and gas personnel. The experience that existed 20 years and longer ago is retiring and the “X & Y” generation” of wuzzies who don’t want to get sweaty and dirty aren’t filling the shoes.
There is a HUGE career opportunity in O&G but it has been demonized and made to look unstable so people shun it as a career path.
I can tell you that we have “rig hands” at my place of employment...many who are high school drop outs and with a bit of a prison record...making at the ripe age of 22 & 23 yrs of age over 150,000.00 EASY!
EASY easy easy money....BUT it involves hard and dangerous work.
Bingo. People looking for complicated answers to the price of gas kill me. Its the most popular product in the history of our country. Demand and use is at an all time high. Hmmm, and price is at an all time high... I wonder if there's a connection...?
The price is accurate for the market (disregarding the impact of gas taxes which are an entirely different thread) The roads are full of people commuting to work in full size pick ups and mini-vans. Until that changes, you will not be able to convince me that gas prices have become too high for the American consumer.
“To begin with, it is becoming more and more difficult to find and drill for Oil as each year goes by. The supply is also being depleted.”
There’s more oil in the Canadian oil shale up in Alberta than there’s in the whole middle east, and it’s been barely tapped. The trouble is the difficulty of extracting it, but that became economic at $40/barrel. There is pleeeeeenty of oil and carbohydron fuel out there.
“Sky high” must be one of those technical economic terms.
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