Oil heading for the stratosphere....

[JPB]

Oil production isn't the major factor for rising prices.

Exxon reported $6B Profit on 1st qtr and x2 on 2nd..$3B for Chevron as the leading sector. The barrel may have gone up 20% or so; much less than the gallon at the pump. And that 's the result of big oil merger. I guess what is bad for the airline industry is not entirely lost after all.

Opening any additional reserve is not going to influence the price at the pump but readjust the bottom line of the big guys. When it comes to new policies and regulations, we are not the center of attention. Reminds me of the EPA break on the industry 6 months ago that was going to lower the price by 10%. It did lower the cost and air/water quality...not the price.....fish....anyone....?

Over 8000 lbs of mercury/plant/year on average but you got to like the TV ads. http://www.epa.gov/mercury/



Yeah I know, EPA is the bad guy and they do it just for fun.
Good day.

 

[Murdawg5]

Lowecur is right...

Lowecur, you are mostly correct...

"Canada's 1.6 Trillion barrels of oil reserve, are the largest behind Saudi Arabia. It comes from tar/oil sands, and at $25. per barrel it will return about 10% to the investors. One doesn't have to be a rocket scientist to see with oil in the $50 barrel range, this will become a major focus for further development."


At some pricing point (you say $25 per barrel) It will become economically feasable to take the HUGE (you say 1.6 trillion barrels, I'm not sure how big the reserve actually is, but it's big) amount of oil stored in tar/oil sands, coal, etc. and turn that into refineable oil... At this price (whatever that price turns out to be) the world's oil market will stabilize for an extened period of time... That amount of time will depend on how much refinable oil is stored in the tar sands and coal deposits in the world... Unfortunately, the price of oil will continue to rise until the price meets that economically feasability price... No offense, I could be wrong, but I don't think the price is $25 per barrel... If it was, then we'd have $25 per barrel oil now.... Fortunaely, most of these types of deposits are in the US and Canada... Therefore, at a certain price, our dependence on importing oil will continue to declline...

Take Care,
Murdawg5

 

[lowecur]

Lowecur, you are mostly correct...


At some pricing point (you say $25 per barrel) It will become economically feasable to take the HUGE (you say 1.6 trillion barrels, I'm not sure how big the reserve actually is, but it's big) amount of oil stored in tar/oil sands, coal, etc. and turn that into refineable oil... No offense, I could be wrong, but I don't think the price is $25 per barrel... If it was, then we'd have $25 per barrel oil now.... Fortunaely, most of these types of deposits are in the US and Canada... Therefore, at a certain price, our dependence on importing oil will continue to declline...

Take Care,
Murdawg5

Most of the tar sands are refined into heavy crude. This includes diesel fuel and heating oil. The 10% is from an article published that I was reading dated in 2003. It makes sense, otherwise you wouldn't have 1 million barrels produced daily.

The Middle East doesn't want high crude prices due to the long term affects if has on the development of alternative fuels. It's the old penny wise and pound foolish adage. Unfortunately, there is not much that they can do to control the consumer end. With China becoming a major consumer, this will only add to the pricing pressures. Even if the US goes into another recession, China will continue to grow as an oil consumer at an exponential rate. This will add inflation to our economy, and no real way to fight it other than higher interest rates.