Michael Lynch - Disputing Peak Oil

Carlhole · **Joined:** Mon Jul 05, 2004 12:00 am **Posts:** 3942

Oil tumbles below $40 for first time since 2004

Quote:

Oil prices tumbled below $40 for the first time since the summer of 2004 Wednesday despite an announcement from OPEC of a record production cut of 2.2 million barrels a day.

The drop shows that even the mighty Organization of Petroleum Exporting Countries has little sway over a growing global recession, analysts said. Crude prices are down more than 72 percent from their summer peak of $147 a barrel, yet tankers continue to idle in the Gulf of Mexico and other ports waiting for buyers.

"There's just so much oil in inventory out there right now," said Michael Lynch, president of Strategic Energy & Economic Research. "Nobody wants to buy this stuff."

Markets had already priced in a vastly reduced flow of oil and traders focused instead on troubling economic data that points to a long and severe recession.

I wonder where "Spike" is now? He should stop in and say "Toldja!" or something.

kublikhan · **Posted:** Thu Dec 18, 2008 6:13 am

Carlhole wrote:

Oil tumbles below $40 for first time since 2004

Quote:

Oil prices tumbled below $40 for the first time since the summer of 2004 Wednesday despite an announcement from OPEC of a record production cut of 2.2 million barrels a day.

The drop shows that even the mighty Organization of Petroleum Exporting Countries has little sway over a growing global recession, analysts said. Crude prices are down more than 72 percent from their summer peak of $147 a barrel, yet tankers continue to idle in the Gulf of Mexico and other ports waiting for buyers.

"There's just so much oil in inventory out there right now," said Michael Lynch, president of Strategic Energy & Economic Research. "Nobody wants to buy this stuff."

Markets had already priced in a vastly reduced flow of oil and traders focused instead on troubling economic data that points to a long and severe recession.

I wonder where "Spike" is now? He should stop in and say "Toldja!" or something.

"Spike", aka "Michael Lynch", is the one in your quote

TheDude · **Posted:** Thu Dec 18, 2008 6:54 am

Carlhole wrote:

I wonder where "Spike" is now? He should stop in and say "Toldja!" or something.

Why? I re-read most of this thread recently and Mike wasn't talking about a vast economic implosion on the horizon caused by reckless credit policies. His whole rap was that the industry was so unstoppable we'd be drowning in oil soon enough, which never came to pass until demand began to falter massively. That, and poking holes in the arguments of Simmons/Campbell/Laherre.

TonyPrep · **Posted:** Thu Dec 18, 2008 11:30 am

TheDude wrote:

Carlhole wrote:

I wonder where "Spike" is now? He should stop in and say "Toldja!" or something.

Why? I re-read most of this thread recently and Mike wasn't talking about a vast economic implosion on the horizon caused by reckless credit policies. His whole rap was that the industry was so unstoppable we'd be drowning in oil soon enough, which never came to pass until demand began to falter massively. That, and poking holes in the arguments of Simmons/Campbell/Laherre.

I don't think we're quite drowning in oil yet (in fact, just the opposite, according to the latest estimates in the EIA's STEO).

traderm · **Joined:** Thu Jan 01, 2009 1:00 am **Posts:** 4

http://www.youtube.com/watch?v=GP6DhKGDzek

http://www.youtube.com/watch?v=D1t4ue-W ... re=channel

Two very interesting youtube vidoes on Saudi's reserve.

_________________

The Road Ahead

TheDude · **Posted:** Thu Jan 01, 2009 4:09 pm

traderm wrote:

http://www.youtube.com/watch?v=GP6DhKGDzek

http://www.youtube.com/watch?v=D1t4ue-W ... re=channel

Two very interesting youtube vidoes on Saudi's reserve.

That's the 60 Minutes piece on KSA, where they schlepped Leslie Stahl around to look at piping and computer terminals.

Michael Lynch - Disputing Peak Oil

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