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| Arabia | |
| Saudi king wants crude oil at $75 | |
| 2008-11-30 | |
King Abdullah of Saudi Arabia says measures should be taken to increase the price of crude oil to the "fair price" of $75 per barrel.
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| Posted by:Fred |
| #9 Almost all the growth in oil demand was in China, India, etc. If oil demand is now declining then the economic growth numbers coming out of China and India, 5%+ are BS. |
| Posted by: phil_b 2008-11-30 17:48 |
| #8 From what little I know about "supply and demand" of oil, the average price of oil should be between $50 and $60 a barrel. That would result in gasoline selling for about $1.75/gallon. That's high enough to encourage domestic drilling, and still low enough that the nation doesn't suffer from high transportation costs. There's an area in southern Colorado that used to produce tons and tons of coal, but mining coal there is no longer feasible. The coal has a high sulfur content that requires tons of special equipment when burned. The area has now been opened for natural gas development, and production is high. Most of the natural gas comes from the coal-bearing strata, but is much easier to scrub than the coal. I'm sure there are other regions in the US where this is true. |
| Posted by: Old Patriot 2008-11-30 13:50 |
| #7 It is time he be cut off from any revenues. that's what I think. Greedy moslem. |
| Posted by: newc 2008-11-30 13:43 |
| #6 fwiw, I'll agree with the Saudis on this. $75/barrel is high enough to encourage 2nd generation biofuels, shale, deep drilling and oil sand development but low enough to badly hurt the Persian economy (which needs about $90/barrel to balance the national budget) |
| Posted by: mhw 2008-11-30 09:56 |
| #5 |
| Posted by: GolfBravoUSMC 2008-11-30 09:19 |
| #4 MMBtu = 1 Million BTUs Oil = 5.8 MMBtu So your $6 Nat gas is oil equiv is $34.80. Looking at 11/28 NYMEX Nat gas futures price at $6.51/MMBtu, the oil equiv is $37.76 and WTI crude is $54.43. One other note, oil is easy to transport and export for the highest price. Nat gas only goes where there are pipelines, except for a small portion exported as LNG. There is a lot of new nat gas wells coming on line in the US, so the price differential will increase. A few years ago in my state, even though we are a major nat gas producer, prices got so high that it was cheaper to run industrial processes with coal fired electricity. A startling revelation if you consider all the capital required to generate electricity. |
| Posted by: ed 2008-11-30 07:15 |
| #3 Maybe someone can help me out here. I was trying to figure out the NG to oil price. An NG contract current trades at $6 and Trading Unit Natural Gas Futures: 10,000 million British thermal units (MMBtu). A barrel of oil = 6 million btu which makes natural gas at less than $4 per barrel equivalent, which is way too low. |
| Posted by: phil_b 2008-11-30 06:54 |
| #2 domestic production would quickly tend towards zero. And I'd quickly tend towards unemployed. |
| Posted by: Glenmore 2008-11-30 02:32 |
| #1 Fred it's likely that @ $7.50/bbl domestic production would quickly tend towards zero. Be careful what you wish for .... |
| Posted by: AzCat 2008-11-30 01:26 |