[Gandalf_the_White]

$this->bbcode_second_pass_quote('dohboi', 'd') wrote:

"Oil is not gold, it needs to be sold to someone who can buy it to use for either driving or making something plasticy and sellable."

Good point, but on the other hand once gold is mined it is pretty much around forever so the total amount is always increasing, while oil is quickly burned up or changed into something else, so is gone for ever shortly after being mined.

[whereagles]

You can probably synthetize gold with some nuclear reaction. Rate of flow will be a few grams a day, though

[shortonoil]

To prevent social anarchy, the oil producing nations must keep oil prices high enough to provide them with the funds necessary to avoid it. As their populations grow, their production falls, their per unit cost increases, and they get more “Westernized” that price will increase. It can easily be assumed that like a parasite, the oil producing nations will feed until the host dies. The only real question is at what price will the host perish?

Answer that question, and you will have established what will be, the maximum oil price.

[Gandalf_the_White]

$this->bbcode_second_pass_quote('shortonoil', 'T')o prevent social anarchy, the oil producing nations must keep oil prices high enough to provide them with the funds necessary to avoid it. As their populations grow, their production falls, their per unit cost increases, and they get more “Westernized” that price will increase. It can easily be assumed that like a parasite, the oil producing nations will feed until the host dies. The only real question is at what price will the host perish?

Answer that question, and you will have established what will be, the maximum oil price.

[Toploader]

$this->bbcode_second_pass_quote('whereagles', 'Y')ou can probably synthetize gold with some nuclear reaction. Rate of flow will be a few grams a day, though

[Revi]

$500 a barrel means $16.25 per gallon gasoline. What's so bad about that? That means that you will transported about a mile with about 500 pounds of stuff for less than a buck. Sounds like a bargain even at that price.

The price doesn't matter. We'll pay it.

[Pholostan]

$this->bbcode_second_pass_quote('Revi', '$')500 a barrel means $16.25 per gallon gasoline.

[chris-h]

103.46 new record

[kilik]

Here in Norway we are alreay paying around $9 USD for a gallon, but I don't think we've seen any decrease in car use yet.

A recent goverment report said that doubling the gas price in Norway would reduce car use with 19%. Three times the price will give a 31% reduction.

[jdumars]

This kinda says it all....

[PeakingAroundtheCorner]

Well folks, we're in historic territory now for sure. Welcome to Era of Decline.

Now that the "inflation-adjusted high" price for oil has finally been reached, the new spin has already begun:

http://biz.yahoo.com/ap/080303/oil_prices.html

Now, the price is going to be spun as being high because the dollar is low.

Which begs the question, can someone explain the relation to price of oil/gas today with the "inflation-adjusted" and "dollar down" prices? I think it's a bunch of hogwash. As far as I am concerned, the price is the price and it's the effect it has on my wallet that I care about, not some 20 year old inflation adjusted amount.

[chris-h]

103.82 now

[Revi]

I thought that this thread was about oil prices and discussion of that. Is this the relative merits of the US vs. Canada thread? I had to go back to the top of the page to reassure myself that it was the Another Record thread.

[gnm]

Strange. Opec announces possible cutbacks in production, and both oil and RBOB are way down. Gold dropping too. Weird given the current dollar/euro situation.

oil $99 and change now...

-G

[PeakingAroundtheCorner]

$this->bbcode_second_pass_quote('gnm', 'S')trange. Opec announces possible cutbacks in production, and both oil and RBOB are way down. Gold dropping too. Weird given the current dollar/euro situation.

oil $99 and change now...

-G

[gnm]

Is this driven by the Saleri (sp?) article - do traders really buy the 16 Trillion in reserves BS he's spewing?

-G

[emersonbiggins]

Good article in the Oklahoman (no mean feat) this morning about how profits from the high price of oil are merely going back into the ground, as production costs soar for domestic crude.

Emphasis mine below.

$this->bbcode_second_pass_quote('', 'C')hip Minty, a spokesman for Devon Energy Corp., said his company maintains a similar perspective in that regard.

"A strong oil commodity market generates revenue and allows us to fund exploration and development programs we need to maintain adequate supplies for consumers,” he said. But all three analysts also agreed Friday that the news isn't all sweet.

Hamm attributes the rise of light-sweet crude's price to added expenses to find and produce it.

Reserves of oil that were easy and cheap to get to and to produce in the United States have been gone for decades, and it costs more money than ever to get to oil reserves that are more difficult to find, she said Friday.

"Everybody's profits are being squeezed,” she said. "The per-barrel production and exploration costs are going up dramatically.

"So, the profits we are seeing on these oil prices are short-lived because their costs to produce are going up so much.

"Wells that cost a million dollars to drill three years ago cost $3 million now.”

And the economy's problems aren't helping because the state's oil producers are competing in a global economy using a weaker U.S. dollar for rig time and materials, she pointed out.
...

[BigTex]

$this->bbcode_second_pass_quote('', 'C')hip Minty, a spokesman for Devon Energy Corp., said...

[emersonbiggins]

$this->bbcode_second_pass_quote('BigTex', '')$this->bbcode_second_pass_quote('', 'C')hip Minty, a spokesman for Devon Energy Corp., said...