[PeakingAroundtheCorner]

$this->bbcode_second_pass_quote('pstarr', 'T')he NYT has a handy explanation for the drop in prices Link

$this->bbcode_second_pass_quote('', 'O')il prices fell sharply Thursday after the Energy Department reported unexpected declines in crude oil supplies last week but said the drop was due to temporary delays in unloading oil tankers along the Gulf Coast.

[Novus]

There are a lot of positive feedback loops that are going to drive the price of everything up no mater what. Look at the high price food. This is enabling farmers to purchase more oil and fertilizer to plant crops. This increases the price of oil which spurs alternative energy schemes AKA burning food in our tanks. Then food prices take another step up and the cycle continues. Total vehicle miles driven are down but energy use continues to climb. World wide EROEI is collapsing. This will not end until their is a massive catastrophe the likes of which the world has never seen before.

I found this graph over two years ago and it explains where we are and where we are going:

[dohboi]

Nicely put, Novus, and nice graph. Any thoughts on when we reach point Z?

[ki11ercane]

Does it really matter what a barrel of oil closes at? Down four bucks? Peak Oil is solved!

The world stage is too pre-occupied with doing "nothing" to try to work towards a solution to the problem. Consumption, trinkets, and pollution. The simple reality that oil is for sale to consume without any indication of a change in attitude to it's impact on the future of this world either economically or ecologically is insanity in itself. The world cannot even see the train coming at it.

I hope oil goes down to a $1.00 or up to $1000.00 a barrel. It's not going to make a difference on the outcome of their not being enough to go around or the oceans are dead. Whether the ill effects happen in 5 years or 30 or next winter, the price of 55 gallons of it isn't going to change that.

If 10% of 10% of 10% of the world gets it in time, that will be a feat in itself.

[Starvid]

Working for gas.

[dohboi]

Nice post, Killercane. I'm looking forward to more.

One minor point: I believe oil barrels as a unit of measure ("bbl") are 42 gallons (even though modern steel drums are 55).

[dohboi]

Nice graph. It needs to be extended to include our current ~$130/bbl rate. That puts us back to the equivalent of the price in about 1880, when oil was a relatively rare, recently discovered material, mostly used in engines of pumps in coal mines and other specialized functions!

We really are returning to the 19th century faster than most here expected!

[ki11ercane]

$this->bbcode_second_pass_quote('dohboi', 'N')ice post, Killercane. I'm looking forward to more.

One minor point: I believe oil barrels as a unit of measure ("bbl") are 42 gallons (even though modern steel drums are 55).

[threadbear]

A lot of gaming action, accompanying peak. That's what is responsible for most of the recent run up. I posted this on the tanker thread as well. It's worth reading.

Seeking Alpha:

NYMEX canceled all but 22M barrels that were scheduled for May Delivery, over 20M barrels below Cushing’s normal capacity.

Not only that, but the "experts" estimated we would have an inventory build this week, when clearly a massive shortage had been created. This led to a "disappointing" crude inventory report today and gave the NYMEX pump crew a chance to test $135 this evening.

http://seekingalpha.com/article/78440-t ... airy-tales

Whether the author of the article thinks there is anything to actual peak oil, can't be determined from this article, but his description of attendant manipulation needs to be taken into account.

[mos6507]

$this->bbcode_second_pass_quote('dohboi', '
')It needs to be extended to include our current ~$130/bbl rate. That puts us back to the equivalent of the price in about 1880, when oil was a relatively rare

[charliehelyes]

$this->bbcode_second_pass_quote('mos6507', '')$this->bbcode_second_pass_quote('dohboi', '
')It needs to be extended to include our current ~$130/bbl rate. That puts us back to the equivalent of the price in about 1880, when oil was a relatively rare

[yesplease]

Most analysts these days will state that oil is the highest adjusted for inflation, but others, likely because they are using a different inflation adjustment, may still state it's lower. As for which inflation adjustment is the best, well... Who knows? Most, for example what the government uses, show that oil passed it's inflation adjusted peak from 1980 whe it hit ~$100, but others are higher at ~$115, and perhaps there are others that need it to go above ~$140...

[mos6507]

$this->bbcode_second_pass_quote('yesplease', 'M')ost analysts these days will state that oil is the highest adjusted for inflation, but others, likely because they are using a different inflation adjustment, may still state it's lower. As for which inflation adjustment is the best, well... Who knows? Most, for example what the government uses, show that oil passed it's inflation adjusted peak from 1980 whe it hit ~$100, but others are higher at ~$115, and perhaps there are others that need it to go above ~$140...

[yesplease]

I doubt anyone would be making that claim at ~$200-300. Right now it's still ballpark, at least according to the first inflation calculator that comes up googling for said dealy, give or take five or ten bucks, so it could still be within the inflation adjusted range depending on what set is used to figure inflation. I don't think anyone could say that w/ a straight face if oil went to ~$200-300 unless it was because the dollar index went to 30-45.

[Troyboy1208]

Damn yes please I want the original Jack English quote!

[yesplease]

$this->bbcode_second_pass_quote('Troyboy1208', 'D')amn yes please I want the original Jack English quote!

[biofuel13]

Tropical Storm Arthur about to enter the Gulf........

http://www.cnn.com/2008/WORLD/americas/ ... index.html

Ladies and gentlemen let the rally to $150 begin!!

[jbrovont]

$this->bbcode_second_pass_quote('biofuel13', 'T')ropical Storm Arthur about to enter the Gulf........

http://www.cnn.com/2008/WORLD/americas/ ... index.html

Ladies and gentlemen let the rally to $150 begin!!

[lowem]

Looks like it's going to test $125.
Been drifting downward all afternoon over on this side.

[lowem]

Oh, and apparently I'm "Light Sweet Crude" nowadays.

Over 1000 posts!