MSM - Oil Won't Go Below 100 - High Prices Here to Stay

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1477

Wow. Now the MSM has connected the dots on supply.

How long til they figure out the ramifications long term?

MSMSeesIt

wisconsin_cur

joeltrout

There was some guy on CNBC yesterday saying that the tar sands were still economic at either $45 or $35/bbl. I forget which one but it shocked me and made me realize these are the people who are creating the problems.

joeltrout
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ENERGY is the basis of our industrial civilization and sustains our standard of living. It is the foundation stone of our national wealth. A nation starved of energy.....will be a nation of starving people.

MadScientist · Heavy Crude Joined: May 19, 2004 Posts: 414

because the tar sands are so energy intensive, the price went up 50% as the cost of oil went up.

KSA oil at $1 and Canadian tar sands at $90.

Hmm it would be really interesting to see what the "average cost per barrel of crude oil production" is on a running graph worldwide.
_________________
"The future power is manpower"

ROCKMAN

joel,

So...some people are just making up numbers. So what? Some of us have made a good living in the past doing just that. Of course, now that oil prices are up I don't have to do that any more.

Soory...just a little inside joke for joel about geologists and fund managers.

zoidberg

ROCKMAN

For me zoid the question is: when will OPEC offset demand destruction by lowering output to raise prices while developing the internal self control to not compete with each other for market share? That's the day the world will enter into very new reality.

The answer: I don't make predictions. Maybe 2 years...maybe 30 years. But I do think we likely hit that new reality someday.

And what do you see as THE question?

MadScientist · Heavy Crude Joined: May 19, 2004 Posts: 414

TheDude

Oh, OPEC didn't publicly announce they were giving up on quotas, did they? There were some juicy remarks from anonymous ministers, but ostensibly they'll still attempt to hew to them.

OPEC faces new challenges as global oil demand slows

ROCKMAN

Such a crap shoot, eh Dude. There has to be a few OPEC members (seeing their clearly declining capabilities) ready to cut production to maximize prices. You know Hugo would like nothing better than to give himself a little breathing room and poke the US in the eye at the same time. We may not be too close to that tipping point but my gut tells me it may not be that many years out.

Hey...you wanna put a skids on alt development in the US? Cut oil imports to the point our society can just barely produce the necessities. You gotta admit it: it would be one world class game of "Chicken".

zoidberg

ROCKMAN

Got it zoid. Your's is really THE BIG QUESTION. Mine was just one of the smaller Big Questions that would lead to your Bigger Question. And I do see the analogy to the USSR. We encouraged them to spend themselves into disaster just as we've encouraged our populace to do the same. The USSR built to many tanks and planes and we built too many sub-prime financed homes and big SUV's.

A rather silly comparision but, unfortunately, seems to work uncomfortably well.

doodlebug2 · Tar Sands Joined: May 25, 2008 Posts: 40

This post seems to be going of topic, BUT it is still good reading.

Back to tar sands, I do not know much about them, but all the info I read (here and internet) is that it is still costs more energy involved than to get energy out (bbl oil). To me , if the media ever brought this up, people would freak out. So many people believe that tar sands are our nations oil savior (are they?)

bl00k

timmac · Heavy Crude Joined: Mar 27, 2008 Posts: 135

Yes high prices are here and might hang around for a while but oil looks as if it might dip below $100 a barrel very soon unless opec cuts production,,

how low can it go before it levels out,, I hope $90 a barrel is a least the bottom,, my business needs a gas break for a while,, last months gas bill was $2800.00...