...He said something to the effect: "World production is sitting at about 85MM Bbls/day, doesn't seem to be able to exceed that total...

Before you guys start praising this guy, remember, he had a prediction
that oil would go to 50 back in Feb,,,, so why are you guys so enamoured
with him ??
Then everyone on CNBC got on the bandwagon for 50 oil crash before
the oil stocks tanked in Feb.

The Globe and Mail reports in its Friday, Feb. 17, edition that oil stocks were fuelled Thursday by talk the Organization of Petroleum Countries is poised to cut output by as much as 500,000 to one million barrels. The Globe's John Partridge writes in the Market Moves column that OPEC members meet next on March 8. Crude oil for delivery in March climbed 81 U.S. cents to $58.46 a barrel on the New York Mercantile Exchange (all figures U.S.). Crude prices had fallen 15 per cent in February until Thursday's small rebound. Dallas-based hedge fund manager Boone Pickens is still looking for much higher oil prices. He conceded oil prices could dip down to the lower $50 range in the short run. He said Thursday oil could hit $90 to $100 a barrel in the next two years, "if something went haywire." A conflict between the United States and Iran or Venezuela would be the impetus for a price jump. "I don't think I'll see $50 again in my life," added Mr. Pickens, 77. Some observers believe the respite for commodities prices and those of their producers is likely temporary. Scotia Capital equity strategist Vincent Delisle says, "I'm not convinced we've seen the worst of it."

It seems like nobody is listening to us peak oilers...

Ah, maybe he's just manipulating the markets.....which would explain some of that $1B plus that he took home last year.

In all honesty oilluber, I'm not enamoured with him at all....just interested in his take on the oil markets.

I just bought a small piece of land that has hydroelectric potential.

Microhydro,

The stream I bought has about 20 feet of head and I was thinking of putting in a crossflow turbine some time in the future. The Army Corps checked it out in the 80's and it's supposed to have about 600 kw potential.
I'm thinking that it is a good move, in that even if the world goes crazy it can always be used for it's original purpose. I could build a grist mill with an undershot wheel and maybe saw wood up too. If a miracle energy source shows up and energy is too cheap to meter I'll use it as a fishing spot.

You may want to sit down because some of you are not going to like what you are about to read. Ready?
The increasing cost of filling your gas tank is not the result of greedy energy company executives who are price gouging and laughing all the way to the bank. I know some of you, feeling the pinch on your household budgets, have bought into this essentially leftist, anti-capitalist idea of an energy company conspiracy because you have written to tell me that is what you think.

Some have even suggested that the solution is for the federal government to take over the oil companies and set the price at $1.50 a gallon! In other words, some good conservatives are embracing the Ted Kennedy, Howard Dean, Big Media, socialist worldview. Heck, even Republican leaders, like Senator Bill Frist and Speaker Dennis Hastert, have bought into it, sending a letter to the president asking for a federal investigation of market manipulation by “big oil.”

Many people are finding it increasingly difficult to buy a home these days because of the red-hot real estate market. But I don’t hear anyone demanding an investigation of homebuilders, mortgage brokers, and banks, even though they are making large profits due to soaring property values and demand for new and bigger homes. So, why are we holding oil companies to a different standard?

I don’t enjoy filling up my gas tank right now, either. And the recent news about Lee Raymond’s extravagant retirement package from ExxonMobil justifiably raised a few eyebrows. But the answer is not more government regulation of the economy, like Hillary’s healthcare scheme. Remember, my friends, a wise man once said, “Government is not the solution to our problem; government is the problem.” What I would like is an investigation of big government!

Taxes are a big part of the cost of a gallon of gas –about 20%. In
addition, a significant portion of the run-up in prices in recent weeks is due to a government-mandated change in the composition of the gasoline you put in your car. The oil companies have to remove an additive called MTBE because of environmental worries, and they have to add ethanol, which cannot be transported through pipelines. How is most of the gasoline in this country transported? Through pipelines! Thus, there is the added cost of shipping ethanol via truck or rail. This is happening at the same time that the refiners have to make the switchover from producing home heating fuels for the winter to producing gasoline for summer driving.

But there is a bigger problem. It’s called “The World.” It is perceived to be a much more dangerous place right now. What happens if the mullahs in Iran shut the narrow Strait of Hormuz, through which a major portion of the world’s oil passes? What if the jihadists succeed in an attack on the Saudi oil fields? Is Hugo Chavez going to shut off Venezuelan oil to the U.S? What if Nigerian oil is shut down by the guerrillas attacking oil facilities there?

In a world filled with these dangers and uncertainties, countries and businesses that need a reliable supply of oil deal in “futures contracts” to insure the delivery of the product at a date down the road at a guaranteed price. The “forward pressure” pushes up prices, too.

But that’s just the beginning. Consider these factors: explosive economic growth in China and India is driving up demand for oil; the powerful environmental lobby in America has blocked the construction of new refineries for over 25 years and prevented new drilling in larger and larger portions of the U.S., etc., etc.

The Republican Party is obviously worried about a backlash at the polls in November, and today President Bush took action in a number of areas that may help stabilize prices and, perhaps, relieve some of the pressure. Unfortunately, there is no “quick fix” or easy solution to America’s energy needs. But, instead of buying into socialist rhetoric, the administration and conservative members of Congress would be better off explaining the role failed liberal policies have played in higher gas prices.

He´s certainly got one hell of an audience. The big question is, were they really listening, and do any of them understand the implications of peak oil production?