[Revi]

$this->bbcode_second_pass_quote('mjdlight', '')$this->bbcode_second_pass_quote('Revi', 'I')t does seem like most people will soon have to make a choice. Feed the car or feed the kids. Easy choice. Houses closer to work are going to start to go up in price. Those McMansions 40 miles out are going to turn to the housing of the poor soon. The repugnicans are going to keep gas down there until the fools vote them in again, then some time next winter the price of oil will creep back up again. Everyone who drove until they qualified will have to sweat the mortgage and pay the gas to get there.

[GoIllini]

$this->bbcode_second_pass_quote('pstarr', 't')his is what peak oil looks like.

When there was a true world-wide surplus (before 2000 and excluding the 1970's shocks) the price moved imperceptively--few cents per season year after year. nothing too sudden.

$this->bbcode_second_pass_quote('yahoo', 'T')he recent drop in energy prices, however, provided people with some relief and propelled confidence to its best reading since February.

[Doly]

$this->bbcode_second_pass_quote('GoIllini', '
')Sorry, pstarr, PO is at least another five years off.

[BigTex]

Remember that things can change for the worse just as quickly as they can change for the better. The fact that we are talking about $60 oil reflecting a price collapse is a whole new world in itself.

We are in a different world than we were in 6 weeks ago and it could be totally different 6 weeks from now.

Long term, though, we are looking at higher energy prices. Terrorists aren't going to stop being terrorists and oil in the ground is not going to get easier to find. The fact that the terrorists live where the oil is will also not change.

We're not doomed, but now is not the time to sound an "all clear."

[captain_planet]

The global supply/demand market determines what the cost per barrel of oil is.

The market can be mulnipilated though:
-For example lets say all those record oil profits is now subsidising the price till the elections. Then the republicans can blame it on the democrats.
-OPEC decides to produce less oil
-War premium
-Terrorist attacks
-Natural disaster
-ects
The global supply/demand market determines what the cost per barrel of oil is, but the market can be too easily changed even by 1 person. One suicide bomber can succed in blowing up a big oil facility and the supplies will be effected, now multiply that suicide bomber by thousands.

Prices need to stay high to force Americans to stop drinking the SUV koolaid.

[Revi]

The price may dip as low as $52 a barrel before it finds a floor. It's still five and a half times what it was in 1998! I just re-read Paul Robert's book, The End of Oil, and he posited a nightmare scenario of oil going up to $50 a barrel and staying there. It's been well past it for the past couple of years, and the world still goes on burning the stuff like there's no tomorrow. I just hope that a few people get the hint and take this time of cheaper energy to get ready for the next upswing. Insulation gives the biggest bang for the buck. Take this lull in the storm to reef the sails and batten down the hatches! Here's a website that tells what to do, and what gives the biggest bang for the buck:

http://www.builditsolar.com/References/ ... Charts.htm

[Gazzatrone]

$this->bbcode_second_pass_quote('Revi', 'T')he price may dip as low as $52 a barrel before it finds a floor. It's still five and a half times what it was in 1998!

[Chicken_Little]

.6ruy

[Bleep]

$this->bbcode_second_pass_quote('', '[')url=http://www.resourceinvestor.com/pebble.asp?relid=24052]Peak Oil Passnotes: Why Is Oil at $60? (link)[/url]
By Edward Tapamor
22 Sep 2006 at 12:15 PM EDT

...skip...

So it is this commentator’s view that oil has had a temporary correction. One that may still be ongoing. But this is not some kind of major sidestep, we are not heading back to $40. Instead we are seeing the collapse of multiple worries all at once. Although too late for the 1200 dead there is a UN force in southern Lebanon. For now Iran seems fairly safe from attack, at least until next spring.

But most of all the expected return of hurricanes to the Gulf of Mexico has not happened. The possible effect of another Katrina, destroying hundreds of millions of pounds of repairs - so shortly after the repairs had been undertaken - was a massive problem at the back of the mind of the market.

One by one the problems underpinning the rise in the price of crude melted away and we saw the first set of falls to sub $70 around the turn of the month. The absence of hurricanes and the effective sanctity of the value of the repairs from Katrina were now safe in the bank.

This culminated in the return of our herd mentality and the profit taking surge. Remember we said the market would sit around $61 at Christmas time? Well it just happened three months early. As we write West Texas Intermediate sits at $61.

So where will it go now. After all we got our timing wrong so why not just get the whole shooting match wrong. Will oil be at $40 by Christmas? It does not look like it.

...skip...

[MC2]

Paid 2.19 for 93 Octane Premium today...

I wouldn't be surprised to see it go a little lower yet, which is amazing, since not long ago I really didn't ever expect it to go below 2 bucks again...

[Revi]

I talked to Chris Miller, the former Peak Oil Governor candidate here in Maine yesterday. He suggested the the reason for this price drop is that they are tapping into the strategic petroleum reserve. He said he's been watching it online. They never filled it back up after Katrina, and they are draining it still, just to keep prices down. What do people think?

I think it's a combo of many factors, including the draining of the reserve, no hurricanes, and the fact that $60 oil is about right for this market. High prices may have flushed a lot of oil onto the market. High prices also encouraged some conservation. We're still up there around the peak, but the price signal has come and gone. It'll be back.

[JustinFrankl]

$this->bbcode_second_pass_quote('GoIllini', 'P')eak oil doesn't look like massive oil discoveries in the gulf and boosts to world oil production.

[shortonoil]

GoIllini said:

$this->bbcode_second_pass_quote('', 'S')orry, pstarr, PO is at least another five years off, despite your apparent hopes that the Republicans win this November.

[Revi]

I agree. The wheels seem like they are going to come off of the economy very soon. Carpenters aren't getting the kind of jobs they had a few months ago. People aren't buying cars. They lost faith in the housing scam, and now it's working it's way into the rest of the economy. We are buying a car, however. It'll be a solar powered neighborhood electric vehicle. The wheels may come off the economy, but they aren't going to come off of my transportation.

www.sunnev.com