$135 a barrel

[dedazo]

$135 A Barrel.

 

[Quimby]

tomorrow by noon.

next.

 

[GOULET!]

$150 easy by the end of June. $200 by years end. There is nothing to stop it.

 

[Smacktard]

$135 A Barrel.

I'm really glad D!ck Durbin (D) 'grilled' the oil execs today, he really showed them! Take all the profits you want D!ck, the price of a gallon of gas (without profits) is still over $3.50. The Republicans were too intoxicated with their power (after '94) to ever make right what the Democrats have done been doing all along, pandering to the lobbyists, ignoring the real problem and then grandstanding to show the folks back home they 'mean business'. Symbolism over subtance. The best footnote ever for politics in a modern America.

 

[Swass]

Speculators, it's them.

 

[satpak77]

Speculators, it's them.

please explain why you think this

 

[Max Powers]

please explain why you think this

No its soccer moms driving their SUVs

 

[Smacktard]

please explain why you think this

I read that the bloated-payoff-pork-feast, known as the Farm Bill, closes the Enron Loophole. This loop hole allows the trading of energy commodities by large firms on OTC electronic exchanges to be exempted from CFTC oversight. Hence, the Goverment can't monitor the trades. So maybe the bloated farm bill passage is a good thing...

 

[JECKEL]

Speculators, it's them.

please explain why you think this


CNN had a good take on this subject earlier today, but I missed a lot of the substance.

What I did take from the report was that the current supply and demand for oil should place the cost of a barrel somewhere between $60 and $85. The report stated that "speculators" and the investments folks alone are driving up the price per barrel by $50 to $75.

The report concluded that the over-the-top price of oil was due mainly by investor greed and speculator hype and not the result of the Big Oil Companies or the Arab world.

Hopefully CNN will run that report again.

 

[Crzipilot]

CNBC had something along the same lines. Only cought a second of it, but after the bell the talking heads were looking at each other, and some interview guy, and basically they were saying. We don't know why it's gone so high, there isn't the fundamentals for it to be that high...etc etc....
Anyways...

 

[dtfl]

Speculators, it's them.

please explain why you think this


CNN had a good take on this subject earlier today, but I missed a lot of the substance.

What I did take from the report was that the current supply and demand for oil should place the cost of a barrel somewhere between $60 and $85. The report stated that "speculators" and the investments folks alone are driving up the price per barrel by $50 to $75.

The report concluded that the over-the-top price of oil was due mainly by investor greed and speculator hype and not the result of the Big Oil Companies or the Arab world.

Hopefully CNN will run that report again.

..and the Saudi Prince who "runs" the oil in that country agreed to produce more, but stated, last week in the news, that it would do NOTHING for the price of oil. He singled out the weak US dollar and speculation as two reasons.

 

[Dizel8]

Not sure there is a simple answer, the devaluing dollar, investors buying oil commodities to offset the dollar, increased demand worldwide, supply disruptions, continued instability in oil producing countries.

Even those paid to analyze are all over the place, Goldman Sach says $200 oil is likely, Lehman says it will fall to around 70.

The Saudis have another two million barrels a day capacity at present, but they cannot find buyers for it. The oil sands are coming along nicely, Canada now has the second largest, proven reserve in the world. Saw a report recently that said, Iraq may have reserves that equal Saudi, but little investment nor research have been done since 1990.

It may be all BS, but the OPEC nations persist in saying there is no shortage and indeed, you can buy all the oil you want, just have to pay the price for it.
Wonder what would happen if we stopped oil commodity trading?

Hopefully though, this time, as opposed to last time, with the oil embargo, we will indeed get our stuff together and come up with solutions that will reduce our reliance upon foreign oil.

 

[chuckthepilot]

http://www.explosm.net/comics/431/

 

[brokedash]

Greedy, fear mongering speculators are the answer to why oil is high. If you removed them, oil would cost in 60-80 dollar range, as mentioned above.

As long as the greedy fat cats are allowed a free pass they will keep jacking the price to profit for themselves. Eventually, if oil gets much higher, we consumers will stop doing less and pay for less fuel, which would cause a demand drop. Hopefully the traders on Wall St. that are in check with reality can get control of this situation and restore some order to the oil trade madness.

The Farm Bill was a giant POS that was signed after Kenny Boy stuffed politicians coffers to ensure there was no check and balance to the blatant practices of Enron. Same story is happening now, only Kenny has been replaced by greedy speculators and the are destroying not a company, but the US economy!

 

[list2002]

And they are American? WTF.

 

[CatfishVT9]

Tech bubble, IPO bubble, Housing bubble, Oil bubble.

There's 10 times the mount of money in oil today than there was just a few years ago. Who knows how long it will take for them to bail out for the next great investment.

Add to that comments by Bonne Pickens on CNBC tuesday morning that oil will be $150 by the end of the year (oil moved up $2.50 or so right after that) and then 535 of the stupidest people on the planet who live in Washington and only make policy that panders to their little niche of the country in order to get re-elected. Did you hear their latest idea? They passed a new bill allowing the Justice Department to sue OPEC. How F---in stupid is that. Maybe that's why oil jumped $5 a barrel yesterday.

And don't get me started on how we are help hostage by the environmental case mafia...........

 

[spitfire1500]

Tech bubble, IPO bubble, Housing bubble, Oil bubble.

There's 10 times the mount of money in oil today than there was just a few years ago. Who knows how long it will take for them to bail out for the next great investment.

Add to that comments by Bonne Pickens on CNBC tuesday morning that oil will be $150 by the end of the year (oil moved up $2.50 or so right after that) and then 535 of the stupidest people on the planet who live in Washington and only make policy that panders to their little niche of the country in order to get re-elected. Did you hear their latest idea? They passed a new bill allowing the Justice Department to sue OPEC. How F---in stupid is that. Maybe that's why oil jumped $5 a barrel yesterday.

And don't get me started on how we are help hostage by the environmental case mafia...........

I think it will be 150 in a few weeks.

 

[cjdriver]

Why do we have to ask Saudi Arabia to increase production? Are we not occupying one of the largest producers of oil in the world? WTF?

 

[Dizel8]

"The Organization of the Petroleum Exporting Countries, source of more than a third of the world's oil, started to reduce oil output in late 2006 to stem a fall in prices."

 

[Dizel8]

Why do we have to ask Saudi Arabia to increase production? Are we not occupying one of the largest producers of oil in the world? WTF?

Iraq claims largest oil reserves
Tue, 29 Apr 2008 08:42:52

An Iraqi oil official has claimed Iraq has the world's largest oil reserves, putting the country's reserves at 350 billion barrels.

Iraq's Deputy Prime Minister Barham Salih cited estimates from unnamed 'reputable sources, reputable companies' to put Iraq's reserves at 350 billion barrels, a figure that exceeds about 264 billion barrels of oil in Saudi Arabia and around 137 billion barrels in Iran.

The massive figure is way above the country's current proven reserves of 115 billion barrels as well.

"The real tragedy of this country is that Iraq is home to possibly the world's largest oil reserves. Some estimates put it at 350 billion barrels," he told Reuters.

"Extraction costs are very minimal compared to anywhere else in the world and we are still at 2 million barrels a day of exports. It's ridiculous."

Huge amounts of investment are needed for boosting oil production and reconstructing the war-shattered country.

While oil giants such as BP, Chevron, ExxonMobil, Royal Dutch Shell and Total are lined up to invest in the country, Iraq is negotiating deals with these companies for two-year oil service contracts.

"We are still talking about technical service agreements with majors at a time when oil prices are at record levels and the world needs (our oil). To me that is obscene," he noted.

 

[~~~^~~~]

It is not normal speculators.

Try "Sovereign Wealth Funds" operated by the governments of Venezuela and Iran. Our other friends the Russians and Chinese have been playing, as well as a bunch of hedge funds.

Remember, when folks start talking about paradigm shifts the market is over bought. When the Flight Attendants talk about buying in to commodities on the crew van, it is time to sell.

 

[Kugelblitz]

Like I said in another thread, we are fighting a war in the middle east for American sovereignty against middle eastern forces that we have already handed over control of our economy too. After many years of bi-partisan efforts to block alternative energy research and initiatives - at the bribed expense of the oil industry - we now find ourselves in a position where the only answer to our problems is to give big oil whatever it needs.

Let them drill in Montana, Alaska, wherever and then they (the US oil companies) can sell that oil to southeast Asia at a higher profit just like they do right now with the extant Alaskan pipeline.

So with everyone and their brother selling out the American people, what exactly was 'patriotism' anyway? The combat personnel in Iraq get to come home and work at Wal-mart because previous senators, some of which were combat vets themselves sold their jobs away to pocket some cash from big business. What was patriotism?

How about a new initiative? Lets replace the American flag with a new one, one that looks like a dollar bill. No, better yet, make that a Euro so it has some value.

 

[XJWRENCH]

I would like to know why there are supply concerns. Could someone explain this to me, besause my take is, if the oil producing countries are dialing back production then they are not running at 100% pumping capacity, right? So I'm taking that there isn't the demand for the Suadi's to pump 100%. I could see there being supply concerns if and only if they had every well head pumping and the ships were backing up in the harbour to get filled. but as I alreadey stated, if the current demand is x amount of barrels dailt, then why pump 2(x) amount of barrels. I don't here about refineries shutting down because they don't have the crude to process... Is it just me or is this whole run up based on crap and the traders not the oil co's taking us for a ride for them to get rich on furtures?

 

[FlyFastLiveSlow]

Like I said in another thread, we are fighting a war in the middle east for American sovereignty against middle eastern forces that we have already handed over control of our economy too. After many years of bi-partisan efforts to block alternative energy research and initiatives - at the bribed expense of the oil industry - we now find ourselves in a position where the only answer to our problems is to give big oil whatever it needs.

Let them drill in Montana, Alaska, wherever and then they (the US oil companies) can sell that oil to southeast Asia at a higher profit just like they do right now with the extant Alaskan pipeline.

So with everyone and their brother selling out the American people, what exactly was 'patriotism' anyway? The combat personnel in Iraq get to come home and work at Wal-mart because previous senators, some of which were combat vets themselves sold their jobs away to pocket some cash from big business. What was patriotism?

How about a new initiative? Lets replace the American flag with a new one, one that looks like a dollar bill. No, better yet, make that a Euro so it has some value.

Nicely said.

 

[Jim Smyth]

We need to get our collective US A$$ in gear before its too late and develope an alternative fuel source! Then Opec can keep all there Oil!

In the interm I have seen suggestions to boycot gas for a day. What not boycot it for a month instead! Dont drive anywhere you dont absolutely have to go for a whole month. When you do go out make multiple stops so you dont have to drive again for a while. That should back up supplies enough to get there attention and maybe start the price going the other direction!

We could also try to start a natioinal data base for fuel costs in your area. "Only" buy gas from the cheapest guy in your area. Once that starts working the rest of the other gas stations will have to under cut the other station to survive. Think this wont work? Look at how well its done for the airline business model!

 

[rumrunner300]

The Farm Bill was a giant POS that was signed after Kenny Boy stuffed politicians coffers to ensure there was no check and balance to the blatant practices of Enron. Same story is happening now, only Kenny has been replaced by greedy speculators and the are destroying not a company, but the US economy!

Remember the great California electricity crisis of 2001? Sky high prices, rolling blackouts, all sorts of talk about the end of the world. All driven by forces not of the actual market, but by relatively small groups. Whatever became of that?

At some point, the sources of all this hype will do themselves in.

I just hope we (airline types) all live that long to see the result.

 

[Soverytired]

Speculators, it's them.

No, it's a world at max production capacity of 80 million barrels a day, when the world needs 87 million barrels per day (and growing).

 

[Soverytired]

I'm really glad D!ck Durbin (D) 'grilled' the oil execs today, he really showed them! Take all the profits you want D!ck, the price of a gallon of gas (without profits) is still over $3.50. The Republicans were too intoxicated with their power (after '94) to ever make right what the Democrats have done been doing all along, pandering to the lobbyists, ignoring the real problem and then grandstanding to show the folks back home they 'mean business'. Symbolism over subtance. The best footnote ever for politics in a modern America.

Yeah, I agree. If you're really "wonkish" you should watch those hearings. Our elected leaders looked like fish in a barrel. What a bunch of morons.

Some fascinating snippets:

• US oil companies can only compete for 7% of the worlds oil reserves
• 75% of the world oil markets are nationalized and heavily subsidized by their governments
• Exxon may seem huge, but only produces about 3% of the world's oil, and controls only 1% of the global reserves

And this statement says it all:

"According to the Department of the Interior, 62 percent of all on-shore federal lands are off limits to oil and gas developments, with restrictions applying to 92 percent of all federal lands. We have an outer continental shelf moratorium on the Atlantic Ocean, an outer continental shelf moratorium on the Pacific Ocean, an outer continental shelf moratorium on the eastern Gulf of Mexico, congressional bans on on-shore oil and gas activities in specific areas of the Rockies and Alaska, and even a congressional ban on doing an analysis of the resource potential for oil and gas in the Atlantic, Pacific and eastern Gulf of Mexico.

The Argonne National Laboratory did a report in 2004 that identified 40 specific federal policy areas that halt, limit, delay or restrict natural gas projects."

But remember! IT'S THE EVIL OIL COMPANIES FAULT!

Christ, they can't even develop natural gas, which is cheap, burns cleaner than oil, and there's lots of it right here in the US.

Our government (elected by us, sigh), is:

INSANE

 

[PlaneDrvr]

I would like to know why there are supply concerns. Could someone explain this to me, besause my take is, if the oil producing countries are dialing back production then they are not running at 100% pumping capacity, right? So I'm taking that there isn't the demand for the Suadi's to pump 100%. I could see there being supply concerns if and only if they had every well head pumping and the ships were backing up in the harbour to get filled. but as I alreadey stated, if the current demand is x amount of barrels dailt, then why pump 2(x) amount of barrels. I don't here about refineries shutting down because they don't have the crude to process... Is it just me or is this whole run up based on crap and the traders not the oil co's taking us for a ride for them to get rich on furtures?

Not an expert, but pretty knowledgeable, so here goes.

The GS and Boone Pickins statements about $150-200/bbl. oil comes from the following FACTS.

-The world currently has the ability to produce somewhere around 85-86M bbls of oil a day; and the world currenly consumes about 83-84M bbls of oil a day. Meaning there is only about 2M bbls of spare capacity and any supply disruption (instability in Middle East, Nigeria, etc), and the market is in the Negative.

Current growth trends in the world economy (think China, India), call for an increase in demand for oil of about 4-5% per year, and current growth in supply (increase in production) of oil going forward is about 1% per year. So, the growth of oil being produced is very Very likely NOT going to keep up with the growth in Demand in the future years (at least 1-5yrs out).

The Saudis do have about 2M bbls of extra/spare capacity available; however, most of that crude is 'heavy sour crude' which is very expensive to refine, and further there are few refineries that have the capability to refine it.

Off the U.S. east coast (the outer continental shelf) there is an estimated 20-40 Billion Barrels of oil, and even more, there is Billions of cubic feet of 'clean burning' Natural Gas. WE, thanks to Congress and 'special interests' in the this Country, completely refuse to drill for it. ALL of the Oil Executives before congress yesterday, all said, open up these areas for us to drill for more oil here, Domestic Production. In the future, we will be paying $7-9.00/gal. for gas, and probably still refuse to develop our own oil reserves.

All our 'so called' leaders (and future so called leaders) keep talking about is "Wind and Solar" which are good future resources and should be employed to add to our future needs. However, my car does NOT run on Solar power and Doesn't have a Sail.

O.K. so I've gone on long enough. Hope it helps, for what its worth.

PD

 

[pilotss]

It is not normal speculators.
When the Flight Attendants talk about buying in to commodities on the crew van, it is time to sell.

HA! That's great! Reminds me of all the people who gave up the job and went into Real Estate!

But seriously. Speculators. I ask everyone this question who states speculators, and I am not convinced because I want to know how speculators cause this. Don't give me a supply and demand answer, I would like a very detailed answer. Not just numbers, I want how their contracts are signed and what is needed on their end and how their profits are made and what is needed to make their profits. What makes their field volatile.

This web board is the greatest source of armchair misinformation from people who have nothing else to do but ramble on. We pilots are experts on flying and passing hot gas out of both ends and not much else.

Don't try to get fancy...just shoot the approach.