THE Chevron Thread (merged)

[frankthetank]

http://www.marketwatch.com/news/story.a ... mktw&dist=

Is he speaking with PO on his mind?

[frankthetank]

The country is becoming more energy interdependent, not less; demand is increasing and shows no signs of abating; reliable supplies "are critical to sustained economic growth;"

reliable supplies=economic growth
lack of supplies=depression???

[Jack]

I suspect he's being as clear and explicit as he can. People DO NOT want to accept this message, IMO.

[BabyPeanut]

Too little too late?

[Jack]

Too little too late?

Let's suppose, purely for the sake of discussion, that Peak happens on Thanksgiving, 2005. That day, exactly, at 12 noon. Further, let's suppose that the political and economic leaders know this without a shadow of a doubt?

What should they do? Level with everyone and promise them a generation, at least, of economic privation, scarcity, hunger, and the death of billions? They'd have panic in the streets. The world would collapse instantly.

I think they'll do what the Easter Islanders and Mayans did...make promises, try to keep things patched together, and fight wars.

[maverickdoc]

I think it is very telling that British petroleum changed it name to beyond petroleum

http://www.fortune.com/fortune/articles ... 12,00.html

[Doly]

I'm quite positive that world governments and economy leaders are aware of the issue, especially the managers of oil companies. What I'd really like to know is: what are their plans? Apart from trying to pretend that everything's OK.

[maverickdoc]

HOUSTON (Reuters) - Asia's insatiable appetite for oil coupled with tight supplies has triggered the start of a global bidding war for oil from the Middle East, the head of ChevronTexaco Corp. said on Tuesday.

"What I see happening is the beginning of alliances forming between Asian entities and Middle East entities for the long term," O'Reilly told reporters. "And I think it's very important that our government recognizes and understands the implications of that."

http://www.boston.com/news/world/asia/a ... dding_war/

[maverickdoc]

I'm quite positive that world governments and economy leaders are aware of the issue, especially the managers of oil companies. What I'd really like to know is: what are their plans? Apart from trying to pretend that everything's OK.

Read Dick Cheney’s energy task force report. remember the one thy have been trying to keep confidential.

[savethehumans]

Doly:

Plans?!

[BabyPeanut]

I'm quite positive that world governments and economy leaders are aware of the issue, especially the managers of oil companies. What I'd really like to know is: what are their plans? Apart from trying to pretend that everything's OK.

Read Dick Cheney’s energy task force report. remember the one thy have been trying to keep confidential.

http://www.gao.gov/new.items/d03894.pdf

http://writ.news.findlaw.com/dean/20030829.html

[Ferretlover]

http://quote.bloomberg.com/apps/news?pi ... 6hU.b2I3KQ

The deal only makes sense if prices stay north of $35 according to this article.

[frankthetank]

Whats with this $30/barrel shit. If production is peaking, and demand stays strong i have no reason to doubt it wouldn't stay 50+. I guess maybe there thinking the possiblity of a global economic meltdown that could cause prices to drop due to wide spread job loss and roving gangs of starving lunatic zombie masses. something like that

I noticed this in an article from ADN this morning.

read here
"The forecast shows North Slope crude averaging $41.75 for the fiscal year ending June 30, then slipping to $38.60 next year -- "

and here
http://adn.com/news/alaska/story/6347136p-6224328c.html

[nth]

hey, remember they don't believe in PO.
If you don't believed in PO, then prices are supposed to go down.

[chargrove]

It's funny to see some of these cornucopians talk about $30 oil, like it's anywhere close to reality. Didn't one of the OPEC honchos (maybe from Kuwait I think) say not long ago that we were guaranteed to never see $30 oil again in our lifetimes? And then not long after that another one was saying the same thing about $40. And these are the folks that actually know something about this since they're the ones producing the stuff, ya know?

I can understand some overly optimistic speculators still talking about $40 oil like it's a possibility. But nobody in their right mind should be talking about $30 oil anymore for any reason, because it will absolutely never happen again.

[PlannerBee]

I don't think they actually believe that $35 is a possibility. I think it is just a reference point for their breaking even. We know good and well that they will make far more on this than at that rate. I do think the rest of that article was interesting though. If you could find it and find it for cheap then you would do just that. You wouldn't go out and buy it. We are in big trouble.

[Clouseau2]

I think it is possible for oil to go down to $35, after a big global meltdown caused by, say, US interest rates skyrocketing or some giant hedge fund going bust and not being bailed out by Uncle Sam or GM going bankrupt.

However, as soon as things recover, it would quickly zoom back up to $50+.

[DriveElectric]

Based on the 1.7 billion barrels of oil equivalent in reserves, Unocal actually sold for $10.20 per barrel.

That is heavily discounted into the future because much of that oil will not be pumped for years. But on a pure price per barrel, Unocal sold in the middle of the range compared to other oil mergers lately.

Article from TheStreet.com

Certainly, the price Chevron paid for the assets was not cheap. Given total consideration of about $18 billion, Chevron paid about $10.20 per barrel of oil equivalent for Unocal's reserves, or about $1.71 per thousand cubic feet on a gas equivalent basis. While that is not at the top of the range for recent acquisitions, it is by no means cheap.

<<skip some stuff>>

And, what will keep acquisition prices moving higher and should help support stocks in the coming months is the fact that you can still buy oil and gas reserves on Wall Street as a relative bargain compared to the current price of the commodity and even to the price in the futures market a year-plus out.

[savethehumans]

Chevron CEO Debunks US Energy Independence

David O'Reilly, the head of Chevron Corp., took a shot Tuesday at the notion of the United States gaining oil independence, a current theme among Washington lawmakers promoting domestic energy policies.
"I want to talk about the notion of independence and debunk it," O'Reilly told a conference sponsored by the Center for Strategic and International Studies.

"Our industry, this business, has not been independent as far as the United States is concerned for a long, long time. We gave up on that notion 50 years ago."
O'Reilly, chief executive of the No. 2 U.S. oil company, dismissed suggestions that the nation could rely fully on domestic resources to satisfy its growing appetite for energy.

(All bold print and italics mine.)

What else is there to say? It all came out of the oil industry CEO's mouth!
Naturally, the story goes on to say that they're going to invest in other countries and their oil, since that's where the oil is--except regions that have barred them from investing. He also mentioned that fighting for the oil could only go so far...so a resource warrior, he ain't.
Anyone have comments? Besides "about time they told the truth," I mean?

[Tanada]

David O'Reilly, the head of Chevron Corp., took a shot Tuesday at the notion of the United States gaining oil independence, a current theme among Washington lawmakers promoting domestic energy policies.

"I want to talk about the notion of independence and debunk it," O'Reilly told a conference sponsored by the Center for Strategic and International Studies.

"Our industry, this business, has not been independent as far as the United States is concerned for a long, long time. We gave up on that notion 50 years ago."

O'Reilly, chief executive of the No. 2 U.S. oil company, dismissed suggestions that the nation could rely fully on domestic resources to satisfy its growing appetite for energy.

(All bold print and italics mine.)

What else is there to say? It all came out of the oil industry CEO's mouth!

Naturally, the story goes on to say that they're going to invest in other countries and their oil, since that's where the oil is--except regions that have barred them from investing. He also mentioned that fighting for the oil could only go so far...so a resource warrior, he ain't.

Anyone have comments? Besides "about time they told the truth," I mean?

The old sayings of watch where the money goes and see what I do ignore what I say have lead me to beleive that the oil execs beleive we are at PO. Now they are not only acting like we are at PO they are in effect saying it.