'Less Bad Is Good': The Mantra of Today's Energy Bull [View article]
Reality is perception. All this amazement about crude not following fundamentals is nonsense. Yes, there are high inventories. They may get higher. The fact is, supply and demand are still very tight in relative terms. The oil market is therefore primed for a spike at any semblance of the coming economic recovery. Is there going to be a recovery? When? Yes, and very probably soon.
Oil at $50/bbl: Where to from Here? [View article]
Dr. Laser, I fundamentally agree with your post, however I would love to see your "studies" that "indicate we have Saudi type fields right here in the United States".
This is my 30th year as an independent producer in Texas, and I guess I've had my head in the sand, because I haven't heard of any such potential oil fields here that even come close to the depleting Saudi fields that have produced hundreds of billions of barrels of oil.
I also agree that governmental regulations are one cause of our stagnating industry. Drill Here, Drill Now!!
Oil Futures Market: Unwinding the Bubble [View article]
Alex, You are certainly cocky in your assumption that you "know" what the long term price of oil should be.
Supply and demand will determine the price of oil as it always does. The speculators have been incorporated into the pricing mechanism. Their effect on prices is consequential in the near term but over the long term it is negligible as it will average out with speculated low prices that will be short lived like the extreme highs.
There are many that believe the $147/bbl price is cheap based on available supply for the long term. It seems to me, that if one believes in markets and the law of supply and demand, crude oil is headed north again very soon.
Low prices kill supply development and increase demand. It is a combination punch that will rock most markets.
Yeah I am a believer in peak oil... Better safe than sorry. I am a small indendent producer in Texas. I have cut my production as a result of the decline in prices. There are thousands of producers like myself who have done the same.
Oil to Retest $40/Barrel by Year-End? [View article]
'Less Bad Is Good': The Mantra of Today's Energy Bull [View article]
All this amazement about crude not following fundamentals is nonsense. Yes, there are high inventories. They may get higher.
The fact is, supply and demand are still very tight in relative terms.
The oil market is therefore primed for a spike at any semblance of the coming economic recovery.
Is there going to be a recovery? When?
Yes, and very probably soon.
Oil at $50/bbl: Where to from Here? [View article]
I fundamentally agree with your post, however I would love to see your "studies" that "indicate we have Saudi type fields right here in the United States".
This is my 30th year as an independent producer in Texas, and I guess I've had my head in the sand, because I haven't heard of any such potential oil fields here that even come close to the depleting Saudi fields that have produced hundreds of billions of barrels of oil.
I also agree that governmental regulations are one cause of our stagnating industry. Drill Here, Drill Now!!
Oil Futures Market: Unwinding the Bubble [View article]
You are certainly cocky in your assumption that you "know" what the long term price of oil should be.
Supply and demand will determine the price of oil as it always does.
The speculators have been incorporated into the pricing mechanism. Their effect on prices is consequential in the near term but over the long term it is negligible as it will average out with speculated low prices that will be short lived like the extreme highs.
There are many that believe the $147/bbl price is cheap based on available supply for the long term. It seems to me, that if one believes in markets and the law of supply and demand, crude oil is headed north again very soon.
Low prices kill supply development and increase demand. It is a combination punch that will rock most markets.
Yeah I am a believer in peak oil... Better safe than sorry.
I am a small indendent producer in Texas. I have cut my production as a result of the decline in prices. There are thousands of producers like myself who have done the same.