Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This is as much of a bubble as gold is. They both will fall. Sure they both are commodies and there is more of both in the ground in many areas of the world. But the problem with both of these bubbles is that the "extremely" rich control the markets and they have two things in their favor, greed and money. Let the revolution begin!!
The demand for oil from China and India is only going to grow. These countries young people are buying their first cars as a result of all the work that companies in our country has moved to their country.
Oil is bought and sold with the US dollar. The US dollar is weak because of - well ya'll know the list of reasons. IF oil were sold by the Euro would it go down? Maybe since the Euro is stronger. Will use less - the demand will go down and so will the price idea work? Probably not in our life time. We are a mobile society that loves to go.
We have oil in our country - we don't have enough refineries. We are selling oil to other countries AND buying oil from other countries. We need people who can figure out this mess in positions to do something about it all. "Oil Bubble" please - just a catch phrase.
The worst part of all this is, WE DON'T NEED OPEC THAT MUCH! We have plenty of oil right here at home that no one is touching, and I don't mean in ANWAR...you know what you get when you heat coal in a vacuum. It sweats. And what does it sweat? OIL! Think of all that coal in the US that we know about, not to mention what we haven't been looking for on account of coal being rather cheap.
And do you know how much it would cost to get oil from coal? About $35 a barrel!
If this government was serious about solving the energy problem it would give big tax-incentives to companies making non-conventional oil here at home and vow ALL-OUT BAN the sale of none pre-owned none hybred vehicles by 2020. But alas, they will probably not act until it's too late (think "Mad Max")
At least with prices on gas going up people are FINALLY starting to think about and use alternatives to driving everywhere (now is a good time to invest in bicycle companies) and people are AT LAST not buying as many of those stupid SUVs.
Really: If you live in LA, where it never snows, what the hell do you need with an Escalade?
If you could get oil from coal for $35 a barrel why would an company like Exxon-Mobil but it on the open market for $120 a barrel? That makes little sense.
If you could get oil from coal for $35 a barrel why would an company like Exxon-Mobil but it on the open market for $120 a barrel? That makes little sense.
Thing is, the reality of high oil prices has only recently set in, so the intrest in non-conventional oil has only recently been raised. But no, that's it: $35 dollars a barrel to make, and if the company really wants to be greedy, it can sell it for double, at $70 barrel and still be selling it for almost half what it goes for now.
I say, give the COAL COMPANIES the tax break to build the infustructure needed. All of a sudden, a COAL COMPANY starts making oil, and Exxon and and their friends all of a sudden have a lot of new competition to deal with
Then I repeat why wouldn't a company like Exxon-Mobil be using it? Its been paying more than $35 dollars a barrel for years now.
Dude, it exists. It has been used before, just never in a mass-production setting, just read the article in the link or google it yourself. Why isn't Exxon doing it? Because they are not a coal company for one and two, Exxon is built into an industry based in the mid-east, and getting oil from the Midwest of the US would anger their Saudi friends (btw, Saudi Arabia has no coal to speak of) I often wondered why the owner of my restuarant used this HORRABLE coffee that cost a bundle AND the customers didn't like until I found out: his brother-in-law was a distributor for the company. Exxon is kind of like that.
If it does happen, you can be guaranteed that it will be a coal company that does it here in the US, not an oil company.
"The likelihood of a global crisis similar to that of 1973 is very high. The precise timing is dependent on the durability of Saudi Arabia’s pro-Western stance, and hence on the stability of the current political regime there. This is because Saudi Arabia is pumping more oil than it needs to, in response to Western (mainly US) political pressure (see graph below). In fact, it is highly likely that if Saudi Arabia were to cut its oil output by 20%, it would actually increase revenue from sales, as the resulting supply shortfall would push prices up significantly. This must be very tempting for a country whose debt to income ratio is approximately 2:1. It is highly conceivable that there will be a change of government in Saudi Arabia within 5 years. This will serve to bring forward the onset of a crisis which, as it stands, is coming anyway." The Hubbert Peak for World Oil
(I have boldened what I believe is a dangerous neo-conservative American foreign policy)
"The likelihood of a global crisis similar to that of 1973 is very high. The precise timing is dependent on the durability of Saudi Arabia’s pro-Western stance, and hence on the stability of the current political regime there. This is because Saudi Arabia is pumping more oil than it needs to, in response to Western (mainly US) political pressure (see graph below). In fact, it is highly likely that if Saudi Arabia were to cut its oil output by 20%, it would actually increase revenue from sales, as the resulting supply shortfall would push prices up significantly. This must be very tempting for a country whose debt to income ratio is approximately 2:1. It is highly conceivable that there will be a change of government in Saudi Arabia within 5 years. This will serve to bring forward the onset of a crisis which, as it stands, is coming anyway." The Hubbert Peak for World Oil
(I have boldened what I believe is a dangerous neo-conservative American foreign policy)
Peak oil, however, refers only to conventional oil. Also, technology to find oil is growing every day, as is fuel efficency. We will run out of oil someday, but I still think it is a few decades away.
No its not. 1.) Most oil does not come from the mid-east, 2.) You seem to not understand what a company like Exxon-Mobil does. If you haven't noticed raw oil isn't particularly useful, it needs to be refined into other products. The refining process is very complex and takes billions in infrastructure to do. 3.) "Coal companies" wouldn't refine oil.
So, I ask again. Why would Exxon-Mobil spend $125 on a barrel of oil instead of $35. The first company to start getting oil at $35 a barrel would make a huge profit so what is stopping them? Just too stupid? The shareholders aren't interested in making money?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
