with these things
if these things
where operated by these
Posted on 12/04/2007 8:13:50 PM PST by Flavius
Surging oil prices reflect strong fundamentals, right? Not from our point of view. Prices have de-coupled from fundamentals, which appear far less robust than markets indicate. The flimsy U.S. dollar and inordinate levels of speculation, not fundamentals, seem to be the primary drivers behind this latest price surge toward the nirvana of $100 oil.
(Excerpt) Read more at forbes.com ...
with these things
if these things
where operated by these
bump
But but but...
PEAK OIL! GLOBAL WARMI - I MEAN CLIMATE CHANGE! OMGWTFBBQ WE’RE ALL GONNA DIE!
Yep, had a freeper just the other day swear that we’d reached “peak oil” already.
The whole concept of “running out of oil” makes no sense if you understand economics.
No, we will never run out of oil .. BUT ... we have already passed the point where the oil can be pumped *cheaply* at a rate to satisfy the world. Incremental new oil is getting more and more expensive.
R W Reactionairy perhaps? On this thread amoung others: http://www.freerepublic.com/focus/f-news/1923136/posts
Care to grace us with your take on the coming oil price plunge RW?
“No, we will never run out of oil .. BUT ... we have already passed the point where the oil can be pumped *cheaply* at a rate to satisfy the world. Incremental new oil is getting more and more expensive.”
you better tell that to Brazil...they just discovered a vast amount of oil last week.
Prices are driven by:
1. refinery capacity
2. Speculation
Iraq alone has huge reserves that are cheaper to tap than Saudi Arabia - problem is that there are just not enough wells drilled at this moment to get it out of the ground. Texas has about 1 million drilled wells, Iraq has less than 10,000.
Saudi Arabia lifting costs (cost to get the oil out of the ground): $2/barrel . Iraq - 50 cents / barrel.
The mad rush to get out of oil could really be interesting to all of the hedge funds that are investing in it....what a sell off!
You forgot BIRD FLU!!!
The new Brazilian oil is going to be expensive to get out, but there is plenty of easy to get to oil off the west coast of Florida, just waiting for a jack up rig.
Sorry could not resist.
come on $35 a barrel.....I look forward to the drop...
You’d have to drown some Florida politicians first.
Need I say "good"?
From a strictly competitive point of view...
When the price gets high, only those economies (capitalist) will be able to compete for the comodity - this will either cause the non-capitalist states to change their system or do without.
Your statement is exactly what I meant when I said "running out of oil" makes no sense if you understand economics. New oil DOES get more expensive, but if the price supports it, the development will happen. And, we know, competition in development brings prices back down.
Yes we have.
That occured about 1925. It's become increasingly expensive to recover the worlds oil since that time.
The world is awash in oil, but by 1940 the expense to recover it began to place a drag on the use of oil.
Just imagine where we as a nation would be if only the oil price was still the same as it was in 1905.
Good point. Oil was never cheaper than when 1903 spindletop strike happen.
Actually, what I was referring to specifically is that part of oil flow is now Canada’s oil sands. The cheap oil price ($10/barrel) that we had in the 1990s wont come back, because the marginal-last-barrel of oil costs about $30/barrel. If oil goes that low, they wont extract/mine that. That plus OPEC’s control keeps a floor on oil, probably in the $30-40/barrel range. This is different from the past, where exploration cost money, but pumping was cheap.
JMHO.
“The new Brazilian oil is going to be expensive to get out, but there is plenty of easy to get to oil off the west coast of Florida, just waiting for a jack up rig.”
... and a Congress that stops kissing the eco-extremists’ butt and starts allowing drilling in ANWR, offshore and elsewhere.
ie, It awaits a GOP Congress.
Agreed.
And btw, we have 1.5 *TRILLION* equivalent of oil shale in the Rockies. We will never run out of the stuff and free market capitalism could extract it at $50/barrel or so.
So we win ... if only the politicians would *let* us win.
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