ZMaNFaRLee

Is Oil a Bubble? Part One

www.ft.com/cms/s/0/571...

uh oh.......

Is Oil a Bubble? Part One

We drill it, suck it up, and it flows. All I can say in defense. And I think it is a proper defense.

Is Oil a Bubble? Part One

One thing to note user is that reserves are based on what oil is profitable to get to. If oil Hits $150 maybe drilling through Ice in Russia becomes worth it economically, maybe boiling oil shale in Colorado becomes worth it, etc. The odd thing about oil and using the word production or reserves is that when price goes up so does supply..... odd as hell but absolutely true. This would make price increases in oil haveing an almost plateau like effect. So it would make sense to figure that into your numbers. It only takes one pipe in russia drilled through the Ice to change everything once again.

I just hope we don't have to get it. Keep it in the ground and let us continue our work on alternative sources. It is extremely unfair to talk about how long it will take technology to offset current demands when technology grows faster than the price of oil.

Is Oil a Bubble? Part One

Ship Shape... He was not using wheat or corn to show there must be a reversal but showing why putting a wondfall tax on corps in oil makes no sense.

And AMR and ford he used as examples that trasportation is failing right now due to high oil which will in turn drive demand down for oil not that one company will take it down.

I was a little harsh.... didn't think you were still looking at article :)

Is Oil a Bubble? Part One

The simple fact is that oil is at $130 a barrel. We have been talking about alternative energies since it was much cheaper, now/soon those alternative energies can get real margins going because of demand for energy. Maybe Oil makes it to $150 let's say, anything above that will be spikes and nothing more, oil can't stay that high without alternative sources eating up market share.

In the end, high oil prices will be what helped us get away from it's leash. When 400 miles travelled can cost you $50 vs. $100 people will start thinking that an extra $2500 for hybrids/elictricals are pretty smart.

Say what you will about emerging markets needing oil, if the U.S. cuts it's usage in half over the next 30 years oil goes down (adjusted for inflation ofcourse).

Also don't forget..... OIL IS PRICED IN DOLLARS!!!

see what happens eventually when rates go up (that is definitely more long term however)

Disclosure:

Disregarding numbers which were used to just have a number, the logic I don't think can be argued. There was an old saying in times long ago "No wood, No kingdom" wood was the fuel, then came coal, then came oil, next is something else. When people say oil is a necessity it just makes me laugh. Intelligence and ingenuity is teh necessity.

Agree?/Disagree?

Is Oil a Bubble? Part One

Ship shape I am convinced you didn't read the article.