Free Republic
Browse · Search
Topics · Post Article

Skip to comments.

Analyst Makes Bombshell Prediction Of $50 Oil, More Production Than Possibly Know What To Do With
Business Insider ^ | December 1, 2012 | Joe Weisenthal

Posted on 12/04/2012 12:02:23 AM PST by 2ndDivisionVet

For the US economy, this would be a 'Black Swan' of a totally different variety.

In Bank of America/Merrill Lynch's 2013 Energy Outlook, analyst Sabine Schels and colleagues make a shocking prediction about the possible path of West Texas Intermediate oil.

Surging US shale oil output creates risk of $50 WTI North America’s energy supplies are surging while the rest of the world continues to fight for scarce molecules of oil and gas. On our estimates, onshore US crude oil output now vastly exceeds previous growth rates in liquids and nat gas, particularly in Lower 48 states. With profitability for US domestic oil producers very high and no change in sight to US rules preventing crude oil exports, we expect WTI prices to continue to lag international prices. Indeed, we see a risk of WTI temporarily falling to $50/bbl over the next 24 months to force a slowdown in supply growth or a change in crude oil export rules.

A key point that Schels & Co. make is that the crude oil market could come to resemble the Natural Gas market. In the natural gas market, the US has natural gas coming out of its ears, as it just has way more supply coming out of the ground than it could possibly use or export. So while prices remain decent throughout much of the world, domestic natural gas prices have collapsed...

(Excerpt) Read more at ...

TOPICS: Business/Economy; Culture/Society; Front Page News; News/Current Events
KEYWORDS: economy; gas; oil; shale
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-89 next last
To: 2ndDivisionVet

That’s funny.

How the mighty have fallen. Aeroback with a 305. And a 4 cylinder 442! Sigh.

61 posted on 12/04/2012 6:46:19 AM PST by ecomcon
[ Post Reply | Private Reply | To 15 | View Replies]

To: dalereed

My folks and I sailed into Oakland after overseas duty back in 1961. California looked damned good to me.

62 posted on 12/04/2012 6:48:49 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
[ Post Reply | Private Reply | To 58 | View Replies]

To: 2ndDivisionVet

Even if it happens gas prices will remain high. Too many oxes would be gored by lower prices, not the least of which being Dear Leader. Market manipulation is the name of the game. $3+ per gallon is the New Normal.

63 posted on 12/04/2012 6:49:21 AM PST by jboot (This isn't your father's America. Stay safe and keep your powder dry.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2ndDivisionVet; ecomcon
Please, if you are going to picture the 442, use a decent year.

Mine was black with gold pin-striping. Sadly, not the 442 option, but I totaled it anyways using only a rocket 350 engine.

64 posted on 12/04/2012 6:51:23 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 15 | View Replies]

To: calex59

Because natural gas is a “fluffy” fuel unless you liquify it. Compressed natural gas tanks in a car won’t get you more than, oh, 150 miles of range - if that.

LNG infrastructure would be expensive and “lossy” (you lose gas as the liquid heats up and converts to a gas) and the tanks have to be built to keep the gas in a super-cooled state. Compressed natural gas tanks need to be built to withstand impacts in crashes, because the compressed gas (even if not flammable) would cause quite an enhancement to a crash if the tank vented explosively - not from the gas burning, but from the sheer force of becoming explosively de-compressed.

Here’s a rule of thumb: Ever been in a shop with a 80 to 120 gallon air compressor? Ever wonder how big a bang that tank would make if it exploded at 175PSI?

It would be about the force of .75 to 1.0 sticks of dynamite.

Now think about the force of a CNG tank rupturing at thousands of PSI...

65 posted on 12/04/2012 6:58:22 AM PST by NVDave
[ Post Reply | Private Reply | To 7 | View Replies]

To: Jack Hammer; Fred Nerks; Beckwith

Obama will find a way to f*ck it up somehow, never fear.>>>>>>>>>>>>>>>>>>

Few people know how true your words are and how it will be done.

The EPA now operates on executive orders from POSHITUS
and Obama is quite ready to destroy andy initiative inside the USA that will reduce the price of oil, and he has likely guaranteed this activity to the Saudis.

The only way West Texas oil will ever impact the market is to go to war and shoot at EPA enforcers.Will that happen?
Who knows?

66 posted on 12/04/2012 7:28:36 AM PST by Candor7 (Obama fascism article:(
[ Post Reply | Private Reply | To 2 | View Replies]

To: Candor7

To cadge a phrase from the ancient Left, “You don’t need a weatherman to know which way the wind blows.”

Obama is set on destruction of the United States; his method will reveal itself in time, but the result is a foregone conclusion.

67 posted on 12/04/2012 7:39:06 AM PST by Jack Hammer
[ Post Reply | Private Reply | To 66 | View Replies]

To: Jack Hammer; stephenjohnbanker; Fred Nerks; Beckwith

Remember what a real president is like and remember conservatism. We need rid of the RINOs, they have failed yet dop not want to accept the failure to win the presidency. They own it, now we get rid of them all.

Just listen to this:

68 posted on 12/04/2012 7:55:51 AM PST by Candor7 (Obama fascism article:(
[ Post Reply | Private Reply | To 67 | View Replies]

To: Candor7

“Remember what a real president is like and remember conservatism.”

Yes, by all means, hang in there and fight the good fight.

I’m afraid i’m getting a little too old for that sort of thing, and this election may have been my last.

Possibly, and with a little luck, I’ll live to see the next president - a conservative - inaugurated, but I’m not making any plans.

You kids do what needs to be done - it’s your world now.

69 posted on 12/04/2012 8:39:39 AM PST by Jack Hammer
[ Post Reply | Private Reply | To 68 | View Replies]

To: thackney

Maybe the technology would allow for wildcatters again and the John Q Public could drill his own well and sell it.

70 posted on 12/04/2012 8:43:32 AM PST by Resolute Conservative
[ Post Reply | Private Reply | To 50 | View Replies]

To: Jack Hammer

Don’t worry Jack. It will be turned around.

71 posted on 12/04/2012 8:57:22 AM PST by Candor7 (Obama fascism article:(
[ Post Reply | Private Reply | To 69 | View Replies]

To: chrisser

Interesting info. I imagine fuel injection versus carburetors may make it more difficult as well.

72 posted on 12/04/2012 9:20:40 AM PST by Average Al
[ Post Reply | Private Reply | To 54 | View Replies]

To: Average Al
Actually fuel injection is not a problem for a gas conversion. The gas conversion can be easily done with a fuel injector into the throttle body controlled by a "mega squirt" programmable fuel injector system. With a fuel injector system, some of the parts you need to use are already there like the mass flow sensor. Mega Squirt
73 posted on 12/04/2012 9:54:42 AM PST by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
[ Post Reply | Private Reply | To 72 | View Replies]

To: 2ndDivisionVet

The EPA will “Kill Colorado” long before oil ever approaches $50/barrel. The Agenda will not be sidetracked.

74 posted on 12/04/2012 10:01:51 AM PST by Mr. Jeeves (CTRL-GALT-DELETE)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2ndDivisionVet; Jack Hammer
Here's how they're going to screw up our first genuine shot at energy independence:

Once the greens demagogue the issue of fracking, the EPA will shut it down.

75 posted on 12/04/2012 10:12:46 AM PST by Lakeshark (!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: American in Israel
I would love to convert my cars over to use natural gas. Particulary since it is much cleaner and I wouldn’t have
the concerns about using corrosive ethanol in my engines.
76 posted on 12/04/2012 10:53:18 AM PST by Average Al
[ Post Reply | Private Reply | To 73 | View Replies]

To: Spktyr
However - after a number of ‘genius’ individuals blew up entire city blocks trying to rig up home filling stations and a number of cars were involved in incidents that killed everyone in a 100’ radius because of tank ruptures and improper maintenance, it was filed away as a bad idea for the vehicle population as a whole.

Do you remember where you read these articles? My impression is that most natural gas related accidents come from crashing into natural gas pipelines. To my knowledge, Mexico's CNG conversions are completely unregulated, and I've never heard of spectacular accidents.

77 posted on 12/04/2012 10:55:14 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 18 | View Replies]

Always thought the first 4 in 442 stood for 400ci.
I stand corrected.
Do know at the end of production they were up to the 455ci.
They were pretty hot, but GTO looks and sales kind of did them in.
78 posted on 12/04/2012 11:42:32 AM PST by The Cajun (Sarah Palin, Mark Levin......Nuff said.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Candor7

Yes, it’ll be turned around eventually, and thank you for striking a positive note.

For everything there is a season; however, I doubt very much I’ll be here to see it.

In the interim, I’m a little tired of - and sore from - being ‘turned around’ by the president.

79 posted on 12/04/2012 3:59:22 PM PST by Jack Hammer
[ Post Reply | Private Reply | To 71 | View Replies]

To: 2ndDivisionVet

If oil drops that low it won’t be profitable to extract it from shale.

80 posted on 12/04/2012 8:50:09 PM PST by Terry Mross (I haven't watched the news since the election. Someone ping me if anything big happens.)
[ Post Reply | Private Reply | To 1 | View Replies]

Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-89 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
Topics · Post Article

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