Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Energy Expert: Oil to $20 a Barrel
businessandmedia.org ^ | July 9, 2009 | Jeff Poor

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 CNBC’s 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.

...more (w/video)...

(Excerpt) Read more at businessandmedia.org ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: federalreserve; larrykudlow; oil
Navigation: use the links below to view more comments.
first 1-5051-92 next last

1 posted on 07/09/2009 8:42:45 AM PDT by Rufus2007
[ Post Reply | Private Reply | View Replies]

To: Rufus2007

well if oil does go to $20 again... I am putting every spare dime I got into oil futures.


2 posted on 07/09/2009 8:44:20 AM PDT by TexasFreeper2009
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

Yesterday it was announced here in Oregon that our natural gas bills will be dropping by 10-20% starting this fall/winter.....


3 posted on 07/09/2009 8:45:45 AM PDT by goodnesswins (For lease)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

Now we know why T Boone Pickens shut down his wind farm project.


4 posted on 07/09/2009 8:46:03 AM PDT by Slapshot68
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009

Even a freshman trader could win that bet.


5 posted on 07/09/2009 8:46:12 AM PDT by Eric in the Ozarks
[ Post Reply | Private Reply | To 2 | View Replies]

To: TexasFreeper2009
LOL

And when I win the lottery, I am going to buy all the tickets to the next draw

6 posted on 07/09/2009 8:46:41 AM PDT by Friendofgeorge ( Yes I Love Sarah Palin!!!!!!!!!!!!!!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Rufus2007

I think it could drop if it follows consumer demand. However, I doubt it will go as low as $20.


7 posted on 07/09/2009 8:46:55 AM PDT by mysterio
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

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.


8 posted on 07/09/2009 8:47:03 AM PDT by napscoordinator
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

Since when is a drop in the market price of a raw material a tax break?


9 posted on 07/09/2009 8:47:04 AM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

Prices in the commodity complex in general keep declining.

Smells like a deflationary depression despite all the stimulus.


10 posted on 07/09/2009 8:47:42 AM PDT by GourmetDan (Eccl 10:2 - The heart of the wise inclines to the right, but the heart of the fool to the left.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

and the dems will propose......................raise taxes on gasoline!


11 posted on 07/09/2009 8:47:55 AM PDT by wny
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

Why are prices at the pump rising?


12 posted on 07/09/2009 8:48:33 AM PDT by nikos1121
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007
That kind off price will choke Iran and the OPEc countries unless of course Israel will do them a favor and attack Iran.

That would bring the speculators out and oil would jump back up.

13 posted on 07/09/2009 8:48:36 AM PDT by DainBramage
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009
But T. Boone said it was going to $300 per barrel...?

Pickens: Oil Could Go to $300 a Barrel

14 posted on 07/09/2009 8:48:36 AM PDT by Virginia Ridgerunner (Sarah Palin has crossed the Rubicon!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Rufus2007

Why are prices at the pump rising?


15 posted on 07/09/2009 8:48:44 AM PDT by nikos1121
[ Post Reply | Private Reply | To 1 | View Replies]

To: mysterio

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.”


16 posted on 07/09/2009 8:49:08 AM PDT by Frantzie (Remember when Bush was President and Americans had jobs (and ammo)?)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Rufus2007

‘$20’

Yea, maybe in a IMF currency or ‘World’ denomination.


17 posted on 07/09/2009 8:49:38 AM PDT by BGHater (Insanity is voting for Republicans and expecting Conservatism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

as predicted, the Dimocrats are turning their regulatory blunderbuss on the “speculators” who are starting to head for the tall grass


18 posted on 07/09/2009 8:49:55 AM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

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.


19 posted on 07/09/2009 8:50:06 AM PDT by Da Coyote
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009

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.


20 posted on 07/09/2009 8:50:21 AM PDT by Flavious_Maximus
[ Post Reply | Private Reply | To 2 | View Replies]

To: Rufus2007

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.


21 posted on 07/09/2009 8:50:39 AM PDT by Star Traveler (The God of Abraham, Isaac and Jacob is a Zionist and Jerusalem is the apple of His eye.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

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.


22 posted on 07/09/2009 8:50:54 AM PDT by xcamel (The urge to save humanity is always a false front for the urge to rule it. - H. L. Mencken)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009

No joke. It cost way more than that to get it out of the ground.


23 posted on 07/09/2009 8:51:36 AM PDT by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Rufus2007

Harry Dent predicted bubble burst for commodities
This is not necessarily good news for the economy. A dead patient has very low blood pressure.

http://www.youtube.com/watch?v=e_JzAEzYLt4


24 posted on 07/09/2009 8:51:47 AM PDT by silverleaf (Save the earth. It's the only planet with chocolate!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nikos1121

You said — Why are prices at the pump rising?

Ummm..., let’s see... “because you’re buying it?”... LOL...


25 posted on 07/09/2009 8:51:50 AM PDT by Star Traveler (The God of Abraham, Isaac and Jacob is a Zionist and Jerusalem is the apple of His eye.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: An.American.Expatriate

Poor choice of words. More like a pay raise.


26 posted on 07/09/2009 8:51:56 AM PDT by Eric in the Ozarks
[ Post Reply | Private Reply | To 9 | View Replies]

To: An.American.Expatriate

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.


27 posted on 07/09/2009 8:52:26 AM PDT by babble-on
[ Post Reply | Private Reply | To 9 | View Replies]

To: silverleaf
"Harry Dent predicted bubble burst for commodities"...

..

Also a 30,000 dow I seem to recall....Now a depression til 2020??

28 posted on 07/09/2009 8:53:11 AM PDT by litehaus (A memory tooooo long)
[ Post Reply | Private Reply | To 24 | View Replies]

To: napscoordinator
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.

Because it's closer to 20% that are unemployed, and it's heading higher.

29 posted on 07/09/2009 8:53:25 AM PDT by PugetSoundSoldier (Indignation over the sting of truth is the defense of the indefensible)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Rufus2007

Anyone who believes this nonsense, can become a millionaire by selling “big oil” short. Post your results here.


30 posted on 07/09/2009 8:53:38 AM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nikos1121
"Why are prices at the pump rising?"

They've been dropping (modestly) here in Louisiana for the past few weeks.

31 posted on 07/09/2009 8:53:47 AM PDT by Joe 6-pack (Que me amat, amet et canem meum)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Jewbacca; TexasFreeper2009

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.... :-)


32 posted on 07/09/2009 8:53:54 AM PDT by Star Traveler (The God of Abraham, Isaac and Jacob is a Zionist and Jerusalem is the apple of His eye.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Rufus2007
Is so, Chevy should start making these again, 68' Motion and Baldwin 427SS at maybe 8 mpg.... I'll take 2 :-)...


33 posted on 07/09/2009 8:54:07 AM PDT by taildragger (Palin / Mulally 2012)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rufus2007

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.


34 posted on 07/09/2009 8:54:22 AM PDT by depressed in 06 (For the first time, in my life, I am not proud of my country. Thanks ZerO.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: goodnesswins

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.


35 posted on 07/09/2009 8:55:08 AM PDT by ChildOfThe60s (If you can remember the 60s........you weren't really there)
[ Post Reply | Private Reply | To 3 | View Replies]

To: nikos1121

Prices have been dropping around where I live. Was $2.69 last week. It is $2.49 today


36 posted on 07/09/2009 8:55:21 AM PDT by sneakers
[ Post Reply | Private Reply | To 15 | View Replies]

To: Rufus2007

But gas taxes will go up to make up for lost revenue ...


37 posted on 07/09/2009 8:55:31 AM PDT by SkyDancer ('Those who hammer their guns into plows will plow for those who do not..' ~ Thomas Jefferson)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PugetSoundSoldier; napscoordinator

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...


38 posted on 07/09/2009 8:56:22 AM PDT by Star Traveler (The God of Abraham, Isaac and Jacob is a Zionist and Jerusalem is the apple of His eye.)
[ Post Reply | Private Reply | To 29 | View Replies]

To: Da Coyote
Yes, indeed. And look out for Obama’s next massive stimulus coming with an new exciting highly inflationary feature. Oil is much more likely to go to $200 than $20.
39 posted on 07/09/2009 8:56:45 AM PDT by MBB1984
[ Post Reply | Private Reply | To 19 | View Replies]

To: PugetSoundSoldier

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.


40 posted on 07/09/2009 8:56:49 AM PDT by napscoordinator
[ Post Reply | Private Reply | To 29 | View Replies]

To: sneakers

$2.28/9 here in Missouri.


41 posted on 07/09/2009 8:57:22 AM PDT by Eric in the Ozarks
[ Post Reply | Private Reply | To 36 | View Replies]

To: nikos1121

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.


42 posted on 07/09/2009 8:58:08 AM PDT by MediaMole
[ Post Reply | Private Reply | To 15 | View Replies]

To: TexasFreeper2009
If it does hit $20 again, I won't have any spare dimes.

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.

43 posted on 07/09/2009 8:58:11 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Virginia Ridgerunner

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”.


44 posted on 07/09/2009 8:59:05 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
[ Post Reply | Private Reply | To 14 | View Replies]

To: mysterio

That’s what the bad thing is -

consumer demand is down for energy because the economy is being intentionally driven into the shtter.


45 posted on 07/09/2009 8:59:15 AM PDT by MrB (Go Galt now, save Bowman for later)
[ Post Reply | Private Reply | To 7 | View Replies]

To: nikos1121

The dollar’s value has decreased.


46 posted on 07/09/2009 8:59:40 AM PDT by MrB (Go Galt now, save Bowman for later)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Star Traveler

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.


47 posted on 07/09/2009 8:59:48 AM PDT by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem.)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Jewbacca

Yeah..., it will only last for so long.... :-)


48 posted on 07/09/2009 9:01:24 AM PDT by Star Traveler (The God of Abraham, Isaac and Jacob is a Zionist and Jerusalem is the apple of His eye.)
[ Post Reply | Private Reply | To 47 | View Replies]

Comment #49 Removed by Moderator

To: Rufus2007

Never heard of him.


50 posted on 07/09/2009 9:01:46 AM PDT by Sequoyah101 (Half of the population is below average)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-92 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson