HIgher oil prices will only spur the use of new resources. Opec can no longer keep prices low enough to discourage alternative fuel development. The age of cheap oil may be coming to end, but we are still going to have cheap energy.
HIgher oil prices will only spur the use of new resources. Opec can no longer keep prices low enough to discourage alternative fuel development. The age of cheap oil may be coming to end, but we are still going to have cheap energy.
Well looks like we will see if this is the case. Heading towards $60 now
Interesting that Iraq was mentioned in this article too.
Are we actually getting gasoline out of Oil from Iraq now here in the U.S.???
6-17-2005 Oil Prices Top $57 on Supply Concerns
OPEC failed to soothe the market earlier this week when it agreed to raise its daily output quota to 28 million barrels a day because its members had already been unofficially exceeding that level.
Including Iraq, which is not bound by the cartel's quota system, the Organization of Petroleum Exporting Countries is pumping close to 30 million barrels a day, or about 35 percent of global demand.
6-17-2005 Oil Surges To New All Time High
The near-month futures contract shot up $1.89 to $58.47, blowing past the previous record of $58.28 set on April 4.
"We have not driven the price of gasoline high enough to change people's behavior, but we're getting there," O'Grady said.
"We are still early in this energy shock. The last one in 1973 didn't change behavior until 1980. I have no doubt that people will adapt. I just don't know when."
The near-month futures contract shot up $1.89 to $58.47, blowing past the previous record of $58.28 set on April 4.
"We have not driven the price of gasoline high enough to change people's behavior, but we're getting there," O'Grady said.
"We are still early in this energy shock. The last one in 1973 didn't change behavior until 1980. I have no doubt that people will adapt. I just don't know when."
6-20-2005 Oil Reaches $60
NEW YORK - U.S. stock futures pointed toward a lower market open on Monday, with crude oil prices touching the $60 mark and taking a toll on investor confidence.
High oil prices are generally negative for stocks, as they raise many corporate expenses and eat into consumers' discretionary spending.
NEW YORK - U.S. stock futures pointed toward a lower market open on Monday, with crude oil prices touching the $60 mark and taking a toll on investor confidence.
High oil prices are generally negative for stocks, as they raise many corporate expenses and eat into consumers' discretionary spending.
Time for a new Poll.
Will a U.S. lawsuit against OPEC cause WWIII?
6-21-2005 http://news.yahoo.com/news?tmpl=story&u...050621/pl_nm/energy_congress_opec_dc_1
WASHINGTON - The U.S. Senate voted on Tuesday to allow the U.S. government to sue the OPEC oil cartel on antitrust grounds in an outcry against crude oil prices that are fast approaching the $60 a barrel mark.
The measure, added to wide-sweeping energy legislation by a voice vote, would give authority to the Department of Justice or Federal Trade Commission to sue the Organization of Petroleum Exporting Countries.
Gas and oil prices are too high and it's time that we do something about it," said Republican Sen. Mike DeWine
Republican Sen. Pete Domenici, the Senate's top energy bill negotiator, called the measure "nothing short of incredible," but did not act to block it.
"These are sovereign nations," Domenici said. "For us to decide here on the Senate floor that we're going to establish some new forum and litigation against the OPEC cartel is nothing short of incredible."
Will a U.S. lawsuit against OPEC cause WWIII?
6-21-2005 http://news.yahoo.com/news?tmpl=story&u...050621/pl_nm/energy_congress_opec_dc_1
WASHINGTON - The U.S. Senate voted on Tuesday to allow the U.S. government to sue the OPEC oil cartel on antitrust grounds in an outcry against crude oil prices that are fast approaching the $60 a barrel mark.
The measure, added to wide-sweeping energy legislation by a voice vote, would give authority to the Department of Justice or Federal Trade Commission to sue the Organization of Petroleum Exporting Countries.
Gas and oil prices are too high and it's time that we do something about it," said Republican Sen. Mike DeWine
Republican Sen. Pete Domenici, the Senate's top energy bill negotiator, called the measure "nothing short of incredible," but did not act to block it.
"These are sovereign nations," Domenici said. "For us to decide here on the Senate floor that we're going to establish some new forum and litigation against the OPEC cartel is nothing short of incredible."
It just rhetoric coming of DC. Opec does not have enough control on the world market to do anything about current prices.
Stunt
Diamond Member
- Jul 17, 2002
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Not to mention the high price is due to demand increasing much faster than supply, and OPEC cannot increase supply much higher than it's doing now.
The only member able to increase supply is the Saudis, where their oil is sour (full of sulphur) and is unfit/extremly difficult to refine.
Where are you getting your information? The U.S. Oil Minister Cheney himself???
Again, show me gas stations that have run out of gas due to a supply or refining difficulty.
Stunt
Diamond Member
- Jul 17, 2002
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I follow the oil and gas industry very closely as I am fully invested in them. That information was from presidents of O&G holdings companies and Report on Business experts.
Feel free to do your own research before writing off my statements as Cheney fluff, it's very insulting.
Also, basic knowledge of economics would indicate that over-supply reduces prices (ie. surplus product with no buyer), NOT necessarily demand higher than supply.
Originally posted by: Stunt
I follow the oil and gas industry very closely as I am fully invested in them. That information was from presidents of O&G holdings companies and Report on Business experts.
Feel free to do your own research before writing off my statements as Cheney fluff, it's very insulting.
Also, basic knowledge of economics would indicate that over-supply reduces prices (ie. surplus product with no buyer), NOT necessarily demand higher than supply.
We don't get most of our Oil from Saudi Arabia, most that is refined for gas comes from Venezuela. I've never heard it being too sulphery.
Gas shot up 20 cents a gallon here today to $2.20 :thumbsup: :thumbsup:
Stunt
Diamond Member
- Jul 17, 2002
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Last time i checked, oil was a commodity, therefore its cost is a predetermined global price (the one you post on a daily basis, actually that is oil futures, but i'm simplifying here) and no matter where the US gets its oil from, the supply (among other things) is what dictates price.
This is where the Saudis can play a role, even in the US
I'll go get the info for you on the sulphur.
Originally posted by: dmcowen674
Originally posted by: Stunt
I follow the oil and gas industry very closely as I am fully invested in them. That information was from presidents of O&G holdings companies and Report on Business experts.
Feel free to do your own research before writing off my statements as Cheney fluff, it's very insulting.
Also, basic knowledge of economics would indicate that over-supply reduces prices (ie. surplus product with no buyer), NOT necessarily demand higher than supply.
We don't get most of our Oil from Saudi Arabia, most that is refined for gas comes from Venezuela. I've never heard it being too sulphery.
Gas shot up 20 cents a gallon here today to $2.20 :thumbsup: :thumbsup:
sour crude is high in sulfer. New fields tend to product sweet crude, while older fields produce sour crude. Valero is making a killing right now because they can process the sour stuff and it is a good bit cheaper than the sweet crude.
"Our efforts to increase world energy supplies extend to the downstream," Naimi said. "Saudi Arabia is increasing its capacity and upgrading capabilities at its existing refineries in the kingdom and in other major markets where we have a presence. In addition, we are considering construction of new refineries inside the kingdom. We are also looking at building new refineries in other countries, which would be configured to handle sour and heavy crudes."
So the Saudi's are in the refining business and expanding it too???
Don't we refine around 10 million bbls/day for gasoline? I think we import around 1.4-1.5 million bbls/day from Venezuela....
Originally posted by: Stunt
This is expected, their crude is in very low demand, and nobody can process it.
They have to do this, you should be thankful, it will have an effect on you fuel costs (this is a good thing).
So are they going to start shipping gasoline over in the tankers???
TastesLikeChicken
Lifer
- Sep 12, 2004
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It may not be cheap, but eventually we wil have alternative energy. It's inevitable. As OPEC and Saudis keep rasing prices the will price themselves right out of the energy market, and that's the best thing that can happen to us. Americans can rejoice on the day we no longer depend on foreign oil for our energy needs. Once theiy're relatively poor again, with no other natural resources to make them pre-eimnent on the world stage, then they'll fight against each other instead of trying fight against us.
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