OPEC wants oil to reach $70 a barrel

Breitbart.com ^ | 04/26/09 | ?

[SES1066]

OPEC wants to see oil prices rising to more than 70 dollars a barrel, the oil cartel's secretary general Abdalla El-Badri said Sunday.

"The price of 50 dollars is not enough to cover investment costs for the future," El-Badri told reporters in Algiers.

"The price which allows reasonable and acceptable revenues is more than 70 dollars a barrel," he added.

[trumandogz]

OPEC may want oil at $70.00 a barrel, but I would like to see oil at $80.00 a barrel so that we can expand domestic drilling.

[henkster]

“OPEC may want oil at $70.00 a barrel, but I would like to see oil at $80.00 a barrel so that we can expand domestic drilling.”

I’m with you. And incentive to build nukes and convert coal to synthetic petroleum.

[metmom]

It works for me if you guys don’t mind paying my fuel bills.

[trumandogz]

It works for me if you guys don’t mind paying my fuel bills.

I am not going to pay your bills for you, but I am sure at some point, if you like, Obama and the Democratic Congress will fund all your needs.

As for me, it does not make all that much of a difference to me if I and working in Texas and Louisiana or Saudi Arabia or Venezuela.

However, in order for you to have access to cheap oil over the last 20 years, I have spent a lot of time away from my family and had associates kidnapped by Colombian rebels and have had a 15 year old Nigerian kid shove a gun in my face.

So, If you like, you can continue to pay Venezuela, Saudi Arabia, Colombia, Mexico, Angola and Nigeria for your $2.00 a gallon gas or you can push for domestic drilling.

But it you want that American oil, you are going to have to pay an American price and our industry has no interest in drilling for domestic oil that cannot sell for more that $85.00 a barrel.

[SES1066]

We are setting the world up for an oil shortage and price spike.

I am afraid that you are closer to the truth than most. I expect at least a couple of more boom-bust cycles in the near future (2-5 year range).

My reasoning is that there are far too many OPEC countries that are singularly dependent upon this easy money. Given that they are also autocracies and strained budgets affect their longevity, we will see them pile on in an upward spike to 'make-up' for this recent drought. This will lead to oversupply bust and so on.

Our best moves are to individually reduce consumption. I do local errands on my bicycle, I have insulated my home and have new windows. I drive a 4-cylinder 1995 car. I am a conserving conservative who doesn't want ANYBODY getting my money without a fight.

[NRG1973]

Just remember that the cure for low prices is low prices. I’ve seen figures that worldwide demand has only dropped by about 5% (From something like 87 million barrels a day to about 83 or 84). Also, I’ve seen discussions of peak oil framed not in terms of “we’re running out” but in terms of we’re close to the limits of the RATE at which oil can be produced with the fields and infrastructure that exist worldwide. If that’s so, dramatically higher prices will accompany any increase in demand.

It will take a while, but I think that you are right. All investment in oil exploration/development (both here in North America and overseas has come to a halt. Sooner or later that will lead to tight oil supplies and higher oil prices.

[Scotswife]

“OPEC wants to see oil prices rising to more than 70 dollars a barrel, the oil cartel’s secretary general Abdalla El-Badri said Sunday.”

And I would like to be 20 lbs. lighter by tomorrow morning.

[thackney]

All investment in oil exploration/development (both here in North America and overseas has come to a halt.

The industry has slowed down but certainly not come to a halt.

ExxonMobil to Invest at Record Levels to Meet Future Energy Demand
http://www.businesswire.com/portal/site/exxonmobil/index.jsp?ndmViewId=news_view&ndmConfigId=1001106&newsId=20090305005601&newsLang=en

Exxon Mobil Corporation (NYSE:XOM) today announced plans to invest at record levels — between $25 billion and $30 billion annually over the next five years — to meet expected long-term growth in world energy demand.

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March 2009 strategy update: building new heartlands, managing recession challenges
http://www.shell.com/home/content/media/news_and_library/press_releases/2009/2009_strategy_update_17032009.html

As part of its annual review of strategy, Shell said it is continuing with plans to build new upstream and downstream capacity, while managing the near-term challenges of the global economic slowdown.

[SaxxonWoods]

“I am a conserving conservative who doesn’t want ANYBODY getting my money without a fight.”

Good on you. Conserve all the cash you can also. This downturn is just getting started. It will have several waves, nosty down waves, and it will last a long time. I’m going Galt, starting June 1.