Article

2009-06-11 Economy

Predictions of $250 a barrel on fears for oil reserves

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Posted by GolfBravoUSMC 2009-06-11 11:31|| || Front Page|| [11128 views ] Top

#1 And yet the US has 2 trillion barrels of recoverable oil in shale rock and 200 years of coal production. Actual production - zero.
Oil shale economics
Coal liquefaction economics

Instead our leaders choose for Americans to be batted around like ping pong balls and have our economy destroyed while transferring incredible riches to those who want us enslaved or dead.

Posted by ed 2009-06-11 11:55|| 2009-06-11 11:55|| Front Page Top

#2 ...amid revelations that proven reserves had fallen...

I suspect there's a corollary with banning further exploration in many areas by the usual suspects. Can't 'prove' something if you can't look.

Posted by Procopius2k 2009-06-11 13:01|| 2009-06-11 13:01|| Front Page Top

#3 I'll be happy to sell you as much oil as you would like for $250. Special sale this weekend only, oil for $199!

Posted by Richard of Oregon 2009-06-11 13:18|| 2009-06-11 13:18|| Front Page Top

#4 Pump-n-dump. Keep talking it up, boys, maybe it'll get to $500/barrel.

Posted by Anguper Hupomosing9418 2009-06-11 13:28|| 2009-06-11 13:28|| Front Page Top

#5 no one seems too notice that gas and oil shot up RIGHT after Nobama went too Saudi Arabia!

Posted by funky skunk 2009-06-11 13:36|| 2009-06-11 13:36|| Front Page Top

#6 This is a currency issue layered on scarcity concerns ed, the shale reserves wouldn't help much this time.

Posted by AzCat 2009-06-11 15:21|| 2009-06-11 15:21|| Front Page Top

#7 I agree on the currency portion of pricing. When prices were sky high last year the dollar was $1.90+ to the pound. We got to $1.40+ to the pound earlier this year, but now we're back to $1.64 to the pound.

There is also massive speculation by Soros, Goldman Sachs and their ilk.

Posted by GolfBravoUSMC 2009-06-11 16:15|| 2009-06-11 16:15|| Front Page Top

#8 Goldman Sachs Speculation

Posted by GolfBravoUSMC 2009-06-11 16:17|| 2009-06-11 16:17|| Front Page Top

#9 Combination of factors. Supply is decreasing due to the high cost relative to price of adding new supplies. Asian demand (& others?) has recovered somewhat. Currency exchange rate reflects inflationary US debt increases. And some more speculation is going on. Tankers of oil are being held off the market - call it floating storage - on a bet that prices will go up faster than ship lease bills (not a terribly bad bet right now, as low as tanker rates have gotten.)
Oil shale is not even an option at less than about $100 per barrel unless we invent more efficient ways to get it - and that's not even considering the environmental and water use costs.
My guess - over $80 and global economic activity collapses to drive the demand and price down, under $40 and the 'cheapness' drives demand and price up; long-term smoothed-out average would be $60 now plus 3-5% per year. Above and beyond inflation. Eventually it will make $250 per barrel, fo' sho'.

Posted by Glenmore 2009-06-11 20:23|| 2009-06-11 20:23|| Front Page Top

#10 I thought there were new in-situ oil shale technologies that worked out to the 80/bbl range and didn't use much water?

Posted by Thing From Snowy Mountain 2009-06-11 21:23|| 2009-06-11 21:23|| Front Page Top

#11 1.258/(1.261-1.258) => only 419 years

Febrile, indeed. Pump and dump, I say.

Where's my $60 tariff floor?

Posted by KBK 2009-06-11 22:02|| 2009-06-11 22:02|| Front Page Top

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