The Crude-oil inventories are healthy and evidence is growing that U.S. demand is weakening. =>lower price is coming soon (but the question is if the bubble will hit 95, 99 or 110 before it bursts?)
Take a look at this
Posted on 10/19/2007 5:09:25 PM PDT by shrinkermd
HOUSTON (AP) - Legendary Texas oilman T. Boone Pickens sees the price of oil hitting $100 a barrel perhaps as soon as the fourth quarter but certainly sometime next year, a consequence of daily global production reaching its peak.
The 79-year-old former wildcatter, who now heads the Dallas-based hedge fund BP (NYSE:BP) (TSX:BP'U) Capital Management LP, said Friday afternoon he has no doubt worldwide demand has topped the current global output of roughly 85 million barrels a day. As such, he said, prices have nowhere to go but up.
'I think you'll reach $100 (a barrel) before you go back to $80,' Pickens said before speaking at a gathering of the Association for the Study of Peak Oil and Gas at a downtown hotel. 'It could happen in the fourth quarter, but you'll see it within a year.'
Pickens is credited with a history of prescient predictions about the direction of oil markets, and his bets have paid off handsomely. BP Capital, which focuses on energy-related investments, began a decade ago with $125 million and now manages about $4.5 billion.
Still, many industry and government analysts are far less pessimistic about the prospects for the global oil supply than the billionaire Pickens. Experts disagree about when daily oil output will reach its maximum level -- or whether it has done so already. The federal Government Accountability Office reported in March that most studies have found oil production will reach a peak sometime between now and 2040.
Going forward, Pickens said, rising demand will be met by higher prices rather than ever-larger crude production. 'Any alternative fuel has a chance,' he said, though he's betting big on wind.
In June, Pickens announced plans to build the world's largest wind farm in West Texas.
(Excerpt) Read more at money.cnn.com ...
I agree with Mr. Pickens.
Wasn't Pickens one of the "Peak Oil" scare-mongers last year? He should stick with his "Legengary" status and let it go ...
The man's a genius.
The higher it goes, the further it falls.
Time to bury a really big tank in your back yard and fill it with gasoline for the winter. ;’)
Most years the price of gasoline declines about 30% between Labor Day and Thanksgiving.
This year our “decline” is a lack of meteoric rise.
Just wait till the spring run-up-—$4.00 gas next summer.
We can’t build refineries, we can’t build any new coal fired plants, we can’t build ANY nuclear plant, China is building all three. But of course she isn’t under any
environment treaties. Also we can’t drill off the Atlantic coast,we can’t drill off the western coast nor can we drill in Alaska or the Arctic.
China can and has agreements with Cuba,Nigeria, and other places. Russia is going after the Arctic oil as is Greenland and the Scandinavian Countries.
Why should the oil producing countries not increase the price of oil? They know that our ENVIRONMENTALISTS have the media power and the dims approval to stop any increase
in production of fuel here, of which there is plenty.
We have as yet a great deal of coal, not counting the “clean coal” put into a Federal Landmark,not a Federal Park, which can only be reversed by an act of Congress. We also have untapped gas field,such as those they have begun drilling in Va and W.Va. And we have oil in the sand or tar sands out west. They are extracting it in Canada near our northern border.
Yes we MUST look for alternate fuel sources but it will take time. This country runs on GASOLINE so for the present we will have to use what we know we have.
All I can say is “LOTS OF LUCK’.
The left wants oil to be as expensive as possible. Preferably via taxes, but they will be almost as content if the market causes it.
As oil goes higher, rather than making them more willing to drill, it will do the opposite. Because they will be heartened by their success and dig in even more to stop production.
How high will it go? Now that speculation has supplanted supply/demand as the engine driving prices, I suppose a lamb’s entrails will provide as much accuracy as any other method of prediction.
DRILL ANWR! Drill offshore!
DRILL ANWR! Drill offshore!
DRILL ANWR! Drill offshore!
$100 a barrel may be only the beginning.
We can’t build refineries
~~~
Great post,,,
If STORAGE CAPACITY (tank farms) and refineries are built
this will solve the problem of most of these “shortages”
that run the prices up,,,
The folks in the NE will suffer the most this winter with
the price of heating their homes,,,
The Crude-oil inventories are healthy and evidence is growing that U.S. demand is weakening. =>lower price is coming soon (but the question is if the bubble will hit 95, 99 or 110 before it bursts?)
Take a look at this
:’) US demand has weakened because of the high price, but that will end. We all get used to a higher price after driving less and learning to live with it, then back to a tank a week or whatever. Back when gas hit $2.00 the first time (during the Clinton administration, not during this Bush administration as the partisan media shills framed it), a gas station employee said to me, “the talk lately has been how this $2 gas is to get us used to paying $1.50 a gallon.” A year earlier the price had been just under $1. When the Saudis started to run budget deficits, they decided they had to raise crude prices, and did it by systematically cutting production (or failing to bring it online). That burst the stock market bubble, and GWB inherited a crashing economy from Clinton.
I agree. I think T. Boone is a self-promoter more than anything. With enough money, no matter how luckily obtained, one can do that. I am reminded of Ross Perot.
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