Mmarrkk

How High Will the Price of Oil Go?

The tax complexities of MLP's are highly oversold!! Its not that dang difficult. I own several MLP's and it isn't that big of a deal.

You may want to pull up your research on Linn Energy. They have a sound story and have locked in oil/gas prices through 2011 so their distribution is pretty stable through that period of time. Solid management team and solid assets with locked in prices make it a winner. Risk is probably dollar related.

BP is a great story.

Understand your thesis on why oil can't sustain really really high prices due to substitutes cutting the market and/or demand destruction. Fitz makes a great point regarding some of these substitutes like oil shales...they are nasty on the environment, take a lot of water and will require coorperation from government...all of which mean they won't happen for a while. I'd rather see us tap into natural gas as a fuel substitute either through direct usage (nat gas vehicles) or as a liquid (GTL) but GTL doesn't make sense until oil prices get really high AND nat gas feedstocks stay low. If oil prices are too low OR nat gas prices too high, GTL is a tough economic bet. Too many BTU's used to make not enough BTU's!!

You may want to follow Fitzsimmon's links to his website with his energy policy. He's got some great ideas. He and I differ dramatically on the political spectrum but he's on track with his ideas around energy. He's even coming around to my side of things a little bit regarding the Chosen One. He probably doesn't distrust Obamma as much as me, but he's seeing a lack of progress from him. We need a new energy policy, not a tax the oil/gas company policy. Fitz's is a good place to start.

Oil Stocks: Where Can You Find Black Gold?

Paul: yes there are several LNG import facilities in the EU and they are increasing. The problem is price. LNG costs more, or at least it used to. The Russians have been allowing the price to rise to get closer to equilibrium with the competition...LNG.

Oil Stocks: Where Can You Find Black Gold?

svosavvy:

The russian shenanigans didn't move natural gas prices because, for the most part, natural gas is not yet a global commodity. Some LNG allows for trading from one continent to another but generally, North American natural gas prices are not impacted by what is/was/will be happening in Europe or Russia or the Middle East. There is very very little NG export out of North America and at this time, very little actually being imported (although there is a decent volume of import facility, not much is being used). So if Russia were to lose all of its NG production today, the impact on North America NG prices would be limited.

In the future, perhaps, NG will become a global commodity but at this time, it is very limited.

Oil Stocks: Where Can You Find Black Gold?

Michael66: Some of your points are outright lies!! Others are extreme over exaggerations.

"1. New oil has been found in Canada, Montana, North & South Dakota and in the ocean near Brazil. Each of these oil fields has more oil than Arabia." Hogwash! The oil you claim as "new" in all of these locations were already found at the beginning of 2008 and were known when oil was $140/bbl. Plus, all of these sources in total will not surpass the oil in Arabia. These finds are just not even close, particularly when you look at RECOVERABLE volumes, not just oil in place. Plus, the cost to Find and Develop these sources are in the $40-50 per barrel whereas the oil in Arabia have F&D costs in the single digits!

"3. New methods of injecting CO2 and surfactants into oil wells is being used to double their output." NEW?? These have been around for many many years...at least 30 years as I studied them in college in the 70's. Plus, only a fraction of reservoirs around the world can benefit from these treatments/methods. And again, the cost to implement is very very high.

Many of the other sources you mentioned are a) small in volume and b) extremely expensive. They don't compete with oil until oil reaches 60-80 dollars a barrel at a minimum.