blu

Oil to Retest $40/Barrel by Year-End?

I'll go with Pickens... Those that have the oil determine the price. Saudi's and OPEC have said they like $75... They have the oil.

Oil Price Economics the 60 Minutes Way

blame..... blame.... blame.....

I am so sick of the blame game we have all been playing for every event that occurs. The media just loves to start the ball rolling with idiotic programs like this 60 Minutes program.

Speculation is what makes a market. Some argue it was the dam*ed speculators that drove up the price.... Well, if that is true, then it was the same speculators that have driven the price down to the wonderful (for some) low price we are seeing at present.

The media has become so very powerful. It can manipulate the masses to follow whatever agenda it wants to follow.

Why Oil Won't Penetrate $150/Barrel

Pickens said it well.
The world can only produce 85 million barrels per day while it is consuming 87 million barrels per day. The price continues upward until this equation balances itself. Unfortunately, at the present time, the first half of the equation is declining while the second half is expanding rapidly.

In the meanwhile, we need to be drilling all of our potential locations in the U.S. to try to slow the upward movement of price.
The idiots in Washington will continue to pander by putting up the oil company execs as an offering and telling the masses that we need to tax these evil corporations more. Why won't they just tell the voters the truth? It's because they believe the voters are not smart enough to recognize that corporations do not pay taxes.

Simply put, it makes no sense to tax something you want more of.
Energy costs are too inelastic to try to manipulate by tax policy. It will create too much hardship on the public sector and curtail growth .

The Crude Oil Price Disconnect

None of your huge discoveries of crude are significant in relation to spiking world demand of crude.
OPEC does not increase production for a very simple reason. It can't without doing great damage to its reservoirs.
I agree that speculators are flooding into the commodities markets.
However, they may just happen to be correct in their assessment of oil.
It is becoming apparent that our planet can only produce 87 million barrels of oil per day. Consumption is on ocassionally exceeding that amount. We have been spoiled to cheap energy for too long.

Now everyone wants a quick fix and some politicians are proposing to instigate another windfall profits tax on crude. (Obama)
The windfall profits tax of 1980 caused over 8,000 domestic oil wells to be plugged and abandoned and reduced our domestic production by 6 percent.... thereby adding to the present high price factors.
We can't afford to repeat that error again.