Overflowing With Oil

[XZeroII]

http://www.msnbc.msn.com/id/29495753/

Amazing how fast this turned around. I don't think anyone would have predicted this a year ago.

 

[miketheidiot]

actually stockpiles started building u p quite a bit during the runup, although that was for very different reasons.

anyways, hopefully prices will drop a bit soon.

 

[SigArms08]

Interesting article, thanks!

 

[theeedude]

If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

 

[frostedflakes]

Yup, I'm just waiting until the roller coaster starts to go back up again. Until then, though, I'm enjoying $15-20 fillups.

With any luck the SEC will grow some balls and start regulating the futures market before investors start another run on oil futures.

 

[GTaudiophile]

I suggest a $4.00/gallon gas tax

 

[frostedflakes]

Originally posted by: GTaudiophile
I suggest a $4.00/gallon gas tax

Shhh, don't give them any ideas.

 

[BrownTown]

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

well this has obviously been going on for some time now with oil prices so low. The company I work for has a large portion of their business in oil refineries and such and several huge projects have been canceled already. Not to mention the whole oil sands rush has turned into a ghost town with oil prices so low. Also, while people always seem to mention oil (probably because of gas prices), thats obviously not the only form of energy, natural gas prices are 1/3 of what they were 6 months ago. And obviously bulk electricity prices are also going down due to the lower fuel prices and lower demand. All this combined is worth something like 500 Billion dollars a year in savings to our economy which is pretty much the only ray of light I have seen recently.

 

[sciwizam]

Originally posted by: frostedflakes

Originally posted by: GTaudiophile
I suggest a $4.00/gallon gas tax

Shhh, don't give them any ideas.

Too late in Mass, it's either a 19 cent gas tax hike (totaling around 60cents/gallon) or $7 tunnel toll hike (up from $3.50). It's almost like blackmail.

Also proposed is adding $2 "carbon fee" to the parking fee at Logan Airport.

Add everything up, it'll cost $15-$20 just to pick up or drop someone off at Logan.

 

[dahunan]

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

No.. Supply vs Demand will not be the reason for sharp increase just as it wasnt last time

 

[Zebo]

Originally posted by: BrownTown

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

well this has obviously been going on for some time now with oil prices so low. The company I work for has a large portion of their business in oil refineries and such and several huge projects have been canceled already. Not to mention the whole oil sands rush has turned into a ghost town with oil prices so low. Also, while people always seem to mention oil (probably because of gas prices), thats obviously not the only form of energy, natural gas prices are 1/3 of what they were 6 months ago. And obviously bulk electricity prices are also going down due to the lower fuel prices and lower demand. All this combined is worth something like 500 Billion dollars a year in savings to our economy which is pretty much the only ray of light I have seen recently.

How is that a ray of light? Low gas prices are not a zero sum gain since people you mention at beginning of your post and producers are getting killed e.g. losing jobs and not spending. And taking a long term view prevents alternative energy maintaining smoggy nasty unhealthful cities.

 

[Zebo]

Originally posted by: GTaudiophile
I suggest a $4.00/gallon gas tax

Excellent suggestion. Force so many things in conservation & alt enerygy.... I've never understood being hostage to Jihadis who are an accident of geology.

 

[soccerballtux]

PEAK OIL IS REAL DON'T MISS THE FACTS. WE'RE ALL DOOMED!!!

 

[StageLeft]

Originally posted by: BrownTown

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

well this has obviously been going on for some time now with oil prices so low. The company I work for has a large portion of their business in oil refineries and such and several huge projects have been canceled already. Not to mention the whole oil sands rush has turned into a ghost town with oil prices so low. Also, while people always seem to mention oil (probably because of gas prices), thats obviously not the only form of energy, natural gas prices are 1/3 of what they were 6 months ago. And obviously bulk electricity prices are also going down due to the lower fuel prices and lower demand. All this combined is worth something like 500 Billion dollars a year in savings to our economy which is pretty much the only ray of light I have seen recently.

Cheap energy is good, it is not bad. It is good. The providers suffer but everybody else benefits, just as cheap food is good (notwithstanding obesity rates). Cheap energy is good just as low lumber rates are good to house builders, low oil good for road builders, etc.

?Nobody expected this,? said Antoine Halff, an analyst with Newedge. ?The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.?

What a douche, plenty of people saw this. It was completely unsustainable. People who study the minutiae of economics too much seem to be blissfully unaware of psychology, which is the reason behind these bubbles and oil was a classic one if there ever was one.

 

[dphantom]

Originally posted by: Skoorb

?Nobody expected this,? said Antoine Halff, an analyst with Newedge. ?The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.?

What a douche, plenty of people saw this. It was completely unsustainable. People who study the minutiae of economics too much seem to be blissfully unaware of psychology, which is the reason behind these bubbles and oil was a classic one if there ever was one.

That's why I rarely listen to an analyst. If they had half a brain, they would realize such things are not sustainable. The older I get, it seems the more I realize these numbnuts have no understanding of the real world. My dad and grandfather may not have completed high school, but they sure knew a lot more than these idiots. They had to, they ran a farm and lumber business and had to be able to forecast prices, demand for goods and so forth. The fact that they were successful to me means they were a lot smarter than this whizbang joker.

 

[Moonbeam]

Originally posted by: Skoorb

Originally posted by: BrownTown

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

well this has obviously been going on for some time now with oil prices so low. The company I work for has a large portion of their business in oil refineries and such and several huge projects have been canceled already. Not to mention the whole oil sands rush has turned into a ghost town with oil prices so low. Also, while people always seem to mention oil (probably because of gas prices), thats obviously not the only form of energy, natural gas prices are 1/3 of what they were 6 months ago. And obviously bulk electricity prices are also going down due to the lower fuel prices and lower demand. All this combined is worth something like 500 Billion dollars a year in savings to our economy which is pretty much the only ray of light I have seen recently.

Cheap energy is good, it is not bad. It is good. The providers suffer but everybody else benefits, just as cheap food is good (notwithstanding obesity rates). Cheap energy is good just as low lumber rates are good to house builders, low oil good for road builders, etc.

?Nobody expected this,? said Antoine Halff, an analyst with Newedge. ?The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.?

What a douche, plenty of people saw this. It was completely unsustainable. People who study the minutiae of economics too much seem to be blissfully unaware of psychology, which is the reason behind these bubbles and oil was a classic one if there ever was one.

Psychology? What the hell is that?

 

[StageLeft]

Originally posted by: dphantom

Originally posted by: Skoorb

?Nobody expected this,? said Antoine Halff, an analyst with Newedge. ?The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.?

What a douche, plenty of people saw this. It was completely unsustainable. People who study the minutiae of economics too much seem to be blissfully unaware of psychology, which is the reason behind these bubbles and oil was a classic one if there ever was one.

That's why I rarely listen to an analyst. If they had half a brain, they would realize such things are not sustainable. The older I get, it seems the more I realize these numbnuts have no understanding of the real world. My dad and grandfather may not have completed high school, but they sure knew a lot more than these idiots. They had to, they ran a farm and lumber business and had to be able to forecast prices, demand for goods and so forth. The fact that they were successful to me means they were a lot smarter than this whizbang joker.

It sounds a bit arrogant but there truly are, and very demonstrably, plenty of experts who don't know their ass from their face. It seems to me that in a profession like medicine--also very hard--the experts really are generally pretty good at what they do, but in finance in particular you can have somebody with many credentials and years of experience who completely screws things up hugely. I think they really do spend too much time looking at a single leaf on the tree as indication of its health, unwilling or unable for some reason to see that the trunk is completely rotted through. A lot of them are rich because they sucker others in to give them money, wooing them with fancy bullsh*t.

In their defense, the economy is hugely complex and constantly changing, so it's difficult to consistently predict it, but if common sense and basic reason is saying something cannot sustain, well it cannot. It didn't take a phd in economics to realize that $200/oil was going to stymie the hell out of an already weakening economy. On a very basic and plain level the numbers just did not gel at all.

 

[Moonbeam]

Originally posted by: Skoorb

Originally posted by: dphantom

Originally posted by: Skoorb

?Nobody expected this,? said Antoine Halff, an analyst with Newedge. ?The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast.?

What a douche, plenty of people saw this. It was completely unsustainable. People who study the minutiae of economics too much seem to be blissfully unaware of psychology, which is the reason behind these bubbles and oil was a classic one if there ever was one.

That's why I rarely listen to an analyst. If they had half a brain, they would realize such things are not sustainable. The older I get, it seems the more I realize these numbnuts have no understanding of the real world. My dad and grandfather may not have completed high school, but they sure knew a lot more than these idiots. They had to, they ran a farm and lumber business and had to be able to forecast prices, demand for goods and so forth. The fact that they were successful to me means they were a lot smarter than this whizbang joker.

It sounds a bit arrogant but there truly are, and very demonstrably, plenty of experts who don't know their ass from their face. It seems to me that in a profession like medicine--also very hard--the experts really are generally pretty good at what they do, but in finance in particular you can have somebody with many credentials and years of experience who completely screws things up hugely. I think they really do spend too much time looking at a single leaf on the tree as indication of its health, unwilling or unable for some reason to see that the trunk is completely rotted through. A lot of them are rich because they sucker others in to give them money, wooing them with fancy bullsh*t.

In their defense, the economy is hugely complex and constantly changing, so it's difficult to consistently predict it, but if common sense and basic reason is saying something cannot sustain, well it cannot. It didn't take a phd in economics to realize that $200/oil was going to stymie the hell out of an already weakening economy. On a very basic and plain level the numbers just did not gel at all.

Hindsight is 20-20 and all the wise men are fools. To live with self hate and not know it is to live in a profound state of delusion. The more you know the more you will see that nobody knows anything.

You can't put an old head on young shoulders, eh?

 

[BrownTown]

Originally posted by: Skoorb

Originally posted by: BrownTown

Originally posted by: senseamp
If prices stay low, energy exploration will be cut, companies will mothball more expensive oil projects, skimp on retrofitting existing properties, etc
If demand stays low, supplies will drop until prices stabilize. If we have an economic recovery with growing demand, be ready for a huge spike in oil due to supply demand mismatch this will cause.

well this has obviously been going on for some time now with oil prices so low. The company I work for has a large portion of their business in oil refineries and such and several huge projects have been canceled already. Not to mention the whole oil sands rush has turned into a ghost town with oil prices so low. Also, while people always seem to mention oil (probably because of gas prices), thats obviously not the only form of energy, natural gas prices are 1/3 of what they were 6 months ago. And obviously bulk electricity prices are also going down due to the lower fuel prices and lower demand. All this combined is worth something like 500 Billion dollars a year in savings to our economy which is pretty much the only ray of light I have seen recently.

Cheap energy is good, it is not bad. It is good. The providers suffer but everybody else benefits, just as cheap food is good (notwithstanding obesity rates). Cheap energy is good just as low lumber rates are good to house builders, low oil good for road builders, etc.

not to mention the fact that the majority of our oil and gas is imported, so instead of going overseas this money is being spent in this country. Its bad for some people, but good for the economy as a whole. As for alternative energy, from what I've seen low energy prices are actually helping the environmental movement since they are passing a bunch of anti-oil company type legislation and nobody is really complaiing becasue the price at the pump is still low FOR NOW.

 

[OCGuy]

This is exactly how we bankrupt Venezuela. Low oil prices make me smile.

 

[winnar111]

We should build more storage space with that stimulus money.