Skip to comments.Energy Expert: Oil to $20 a Barrel
Posted on 07/09/2009 8:42:45 AM PDT by Rufus2007
There could be a potential tax break the no one in the news has really picked up on with this ailing economy a big drop in the price of oil. Although the media hype price increases, oil prices are dropping and could be heading toward lows not seen since 1999.
Philip Verleger, a business professor at the University of Calgary and visiting fellow at the Peterson Institute for International Economics told CNBCs July 8 The Kudlow Report how the cost of oil might drop. Verleger explained why the current price of oil at $60 a barrel, off its $72 highs, is still way too expensive for the market and why it could come tumbling down to $20.
(Excerpt) Read more at businessandmedia.org ...
well if oil does go to $20 again... I am putting every spare dime I got into oil futures.
Yesterday it was announced here in Oregon that our natural gas bills will be dropping by 10-20% starting this fall/winter.....
Now we know why T Boone Pickens shut down his wind farm project.
Even a freshman trader could win that bet.
And when I win the lottery, I am going to buy all the tickets to the next draw
I think it could drop if it follows consumer demand. However, I doubt it will go as low as $20.
That is the best news I have heard in a long time. This could really be great for Americans who are having hard times right now. This might just turn the economy around. People will definitely be driving a gain and of course once they get to their destination they will buy items. This is fantastic. Keep in mind 91 percent of Americans have jobs!!! Why people are concentration of 9 percent is beyond me. Celebrate the great news of 91 percent employment. We are a bummer country in some ways.
Since when is a drop in the market price of a raw material a tax break?
Prices in the commodity complex in general keep declining.
Smells like a deflationary depression despite all the stimulus.
and the dems will propose......................raise taxes on gasoline!
Why are prices at the pump rising?
That would bring the speculators out and oil would jump back up.
Why are prices at the pump rising?
This could bail out you know who. :-(
Bush 1 missed the big drop in oil which helped Clinton through 2 terms. This was post Gulf War 1 and OPEC was a bit more “cooperative.”
Yea, maybe in a IMF currency or ‘World’ denomination.
as predicted, the Dimocrats are turning their regulatory blunderbuss on the “speculators” who are starting to head for the tall grass
When Cap and Screw drops in, all of our bills will double (even with $20/barrel oil).
Heh, stay tuned for the upcoming war against the libs.
If a oil goes down to $20 a barrel then Obama, Pelosi and Reid will raise the gas tax 200%. The will not allow the price for a gallon of gas go much below $1.75. They need the high price to pay for their wet dream green technology.
Well, the Arab oil sheiks and their business buddies may try to “talk it up” in regards to oil prices, but the market realities will bring it crashing down... :-)
It’s good to know that Muslim terrorism will be getting less funding as a result of this.
I predicted the last $30 bottom, the next will be $38.
They just have no place to store all the crude that has been shipped in the last 6 months.
No joke. It cost way more than that to get it out of the ground.
Harry Dent predicted bubble burst for commodities
This is not necessarily good news for the economy. A dead patient has very low blood pressure.
You said — Why are prices at the pump rising?
Ummm..., let’s see... “because you’re buying it?”... LOL...
Poor choice of words. More like a pay raise.
You’re right, it’s not a tax break, but for the most part higher oil prices are a dead weight loss the the nation since we import so much of our energy from despots.
Lower energy prices mean less of our money being transferred overseas supporting detestable regimes.
Also a 30,000 dow I seem to recall....Now a depression til 2020??
Because it's closer to 20% that are unemployed, and it's heading higher.
Anyone who believes this nonsense, can become a millionaire by selling “big oil” short. Post your results here.
They've been dropping (modestly) here in Louisiana for the past few weeks.
You said — No joke. It cost way more than that to get it out of the ground.
Ummm.., the trouble is..., once you’ve gotten it out of the ground, and no one wants it, it’s liable to sell for less than it cost to get it out of there in the first place.... :-)
Don’t rejoice too long over low oil price, it will just encourage the Fascicrats to tax it enough to make it too expensive to use.
My gas bill from Louisville G&E shows a gas component cost on each bill. Interestingly, when gas had dropped by 2/3 that item went down 10% (for our Democrats out there 10% is a lot less than 2/3!).
It wasn’t until winter heating season was over that the “gas component cost” went down any more (and not nearly 2/3). Which was roughly 9 months after NG made the 2/3 drop.
I called LG&E to get an explanation of “gas component cost” really means. Pi**ing into the wind on that.
Prices have been dropping around where I live. Was $2.69 last week. It is $2.49 today
But gas taxes will go up to make up for lost revenue ...
You said — Because it’s closer to 20% that are unemployed, and it’s heading higher.
When we hit 25%, then we will be at the Great Depression highs for unemployment. That kinda makes a person think a little bit...
Interesting, but this is a guys opinion and this was never mentioned ever before even in President Bush’s terms. Hopefully people will get relief from this cheap gas we are about to get.
$2.28/9 here in Missouri.
Prices at the pump have been falling for at least a month. From a high around here of $2.89, they are at $2.39 this morning.
Granted, we are stymied at every turn, but there is still a chunk of the US economy related directly to drilling for oil right here in the US.
Oil revenues (royalty, taxes) help keep the state in the black, as well as provide the basis for a great deal of spinoff employment.
$20.00 would stop Bakken Drilling, and other horizontal drilling projects almost overnight, and would shut down developing energy projects from pipelines to alternative sources as well.
As for tax dollars funding the alternative energy projects, the money to print the money has to come from somewhere.
Keep in mind that 1999 led to the runup to 147.00/bbl, and each successive runup in price finds a higher floor later as more infrastructure projects get scuttled, drilling shuts down, wells deplete, and experienced people say goodbye to 24/7/365 all-weather work environments with no real job security and leave for something more stable and with better benefits.
perhaps this explains why oil is back in the low 60s.
the MANIPULATORS have no more reason to manipulate.
It is too bad these people are not thinking about attaching turbines to existing locations.
It is too bad these “experts” are not thinking how to take individual homes and get them “off grid”.
That’s what the bad thing is -
consumer demand is down for energy because the economy is being intentionally driven into the shtter.
The dollar’s value has decreased.
That’s true, but a glut only last so long.
I think $75-85 is much more likely, especially as the amount of produced oil is less and the dollar devalues.
Yeah..., it will only last for so long.... :-)
Never heard of him.