Will America Face an Oil Crisis Soon?

CBN ^ | 2006 | Dale Hurd

[raybbr]

What about all the tar-sands up in Canada? I heard that there is enough to run all of our energy needs for the next 100 years.

Last I heard the Chinese were buying up the rights with our worthless dollars.

[RightWhale]

Guess who's fault it will be?

It will fall into the lap of whoever wins the White House in '08.

[eastforker]

Every available rig in the US is working right now with a 2-4 month wait list.

[eastforker]

Your figures are a little mis guided. You are basing that on market prices but companies like shell and exxon only pay about 35 dollars cost to get oil out of the ground.

[eastforker]

nstead of wasting money on an endless stream of meaningless pork, we should be investing in a multi-path high-speed rail system to blanket the country................ No Thank you!!!

[Publius Valerius]

A lot of gas mileage depends on how you drive the car. I know that in my car, I get significantly more than the estimate; then again, I drive the speed limit and generally accelerate as if the gas pedal is an egg--push too hard, you'll break it.

[CarolinaGuitarman]

"Your figures are a little mis guided. You are basing that on market prices but companies like shell and exxon only pay about 35 dollars cost to get oil out of the ground."

No, they are correct. When you buy a gallon of gas, the oil company makes about 8-12 cents profit. The government makes far more. The profit margins of oil companies are in line with many major corporations.

[eastforker]

Again, you are basing your figures on market cost for oil. The cost for big production refineries that produce their own oil by drilling their own wells is a lot less. Do not let the jumbled figures throw you. When world spot prices was around $35 your figures would be correct.

[ClaireSolt]

Have you been reading anything about the trains? They are at peak capacity causing bottlenecks and delays.

[dljordan]

I think in the next few years Peak Oil will be the least of our worries.

[CarolinaGuitarman]

No, they get about 8-12 cents a gallon profit. Any attempt to have the government in its infinite wisdom regulate prices will result in long lines and shortages. That's always what happens when put artificial caps on prices.

The markets will sort this out better than any government bureaucrat. It's the oil companies oil to sell at whatever prices they want. We are not entitled to their property at any price we wish.

[Myrddin]

"...Americans are addicted to gas guzzling SUV's and expensive automobiles getting low mileage...."

I'm "addicted" to my 4x4 vehicles that don't get trapped in a snow drift. We just had 5 inches of snow last night in Pocatello. It definitely screwed up my air travel, but I didn't have to worry about whether my wife would have trouble getting home from work when her shift ended at 7 AM.

[ClaireSolt]

All this doom and gloom drives me nuts. It is about time we give up on bickering as our national pasttime and get back to working together. We still have a big hole in Manhattan and they won't site trailers in NO. All everyone does is argue, endlessy.

Bush campaigned on the need for a national energy policy and it took Congress 5 years to pass a bill many say is inadequate. so Bush is going round promoting solutions, himself, again and seems to be working with governors to get ethanol cranked up. The army has taken delivery on the first hydrogen car and has a plan to eliminate 75% of its oil. NIMBYs seem to think they can win the White House in 08.

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[backhoe]

Allow me to drop out of Lurk and Link Mode for a brief bit of commentary- we all need to get serious about our dependency on foreign sources of energy, and use our own resources.

Our consumer-based economy is driven by and dependent on readily-available, reliable energy-- choke that off, and we'll all be back to using one rotary dial phone in the dining room, watching one TV, and driving one car per family-- probably a Hudson Hornet or a Rambler...

We need to

1) end the nonsensical ban on offshore drilling off California and Florida--read & weep:
Castro Plans to Drill 45 Miles from US Shores, But We Can't

2) build a lot of next-generation nuclear power plants, not just for electricity, but for any process requiring heat, power, or steam.

3) end Jimmy Carter's idiotic ban on recycling nuclear waste, and reprocess the stuff rather than fighting over where to bury it. Europe has done it for decades.-- what to do with spent nuclear fuel? Answer here: http://www.freerepublic.com/focus/f-news/1468321/posts?page=50#50 hattip:  Mike (former Navy Nuclear Engineer)

4) use the 300-500 years worth of coal we have on our own land, using the new clean-coal technology.
-Clean Coal Centre--

5) and finally, there's nothing wrong with conservation- but you can't conserve your way out of a shortage. Nor is there anything wrong with "alternative" energy sources- except they don't supply the vast ( not to mention readily-available ) amounts of power we need at a price competitive to more conventional sources.

We do need to get serious about this before we get strangled by a bunch of petty thieves and dictators who don't like us much.

My tongue-in-cheek collection of energy-related links:

Sticker Shock-$3 a gallon gas? Click the picture:

And kindly note, and note well-- the first reply to this post ( when gas was less than $1.50 a gallon ) was derisive... so, who's laughing now?

---

PS- sympathize with filling the Suburban- I drive a 4x4, and cuss the bloody thing at the pumps, too-- but the last time the roads flooded here, I got home when many didn't.

[eastforker]

I never said we should regulate them. I just stated that your figures are skeward.Sort of like the farmer that raises cows and corn. He could sell the corn for $5 dollars a bushell or feed it to his cows for the cost of $2 a bushell. Then when he sells the cows he makes a bigger profit but on his bottom line he will show that the corn cost him $5 a bushell to feed that cow. Like I said, your figures are skeward.

[SLB]

PS- sympathize with filling the Suburban- I drive a 4x4, and cuss the bloody thing at the pumps, too-- but the last time the roads flooded here, I got home when many didn't.

Yep, gotta weigh the pluses and minuses and then figure what your own values are. I keep the tank filled, or nearly so, that way the shock is not so great, plus if I need to make a fast and long trip I am ready. My mom is 91 and lives 1300 miles from me. I can make it over half way non-stop with a full tank. As far as bad weather, the clearance and good tires really help out there.

[Mr. Lucky]

...we should be investing in a multi-path high-speed rail system to blanket the country.

You're wholly free to invest your own money as you wish.

[M. Espinola]

Your post is well stated and common sense minded. If people think prices are high now wait until Iran triggers regional war in the oil rich Persian Gulf, coupled with a repeat of powerful hurricanes slamming into the oil production areas of the Gulf of Mexico.

Prices could very well double or far higher and if energy traders begin viewing large oil fields blazing from their TV screens. Stock indexes will quickly turn bearish, while gold and the metals complex will go off the charts.

Those seeking protection from inflation will also look to bonds/T-Bills, while the wise money will be overseas for a more favourable return. None of this coming financial rumbling benefits the U.S. Dollar, unless one is shorting her, which is the only logical longer term trade.

Light Crude Oil (CL, NYMEX)

Energy related inflationary problems are just getting under way. The housing boom may not bust but will go flat with multiple slow leaks.

The good old days, when gas was 28 cents, ice cold Coke was in a bottle for 10 cents and baseball cards were a nickel - and you got bubble gum too :)

[M. Espinola]

You have brought up some excellent economic related points to ponder.

[samm1148]

"Simmons' book has created such a stir in the energy industry that the world's largest oil company, ExxonMobil, created an ad to dispute it. It says that the Earth still has plenty of untapped oil to meet demand for decades to come."

Yeah but we won't be tapping it. God forbid that a freaking tree be uprooted.