anaconda

Is Oil a Bubble? Part Two

Regrettably, Mr. kahn overstates the bubble. The price most likely will drop, but down to $100 a barrel. That's not a bubble, that's a correction, or "bump." There simply is too much pent up demand in the market (demand is restrained at this price, but will jump at lower prices). Maginal addition to supply, which balances the supply - demand equation is from deepwater, deep-drilling, which costs about $70 a barrel to "lift" during production onto the market.

To Ernie Montague: The supply of petroleum is not constrained from a physical aspect. There is lots of oil to discover and produce, expensive, yes, but will be produced at the right price.

Most of this oil is offshore, as to your comment, "They ain't making oil anymore. Any sophmore in petroleum science knows that."

That may be true. But there is a lot more oil than is currently generally believed. And, sorry, but sophmores in petroleum science don't know squat, because, oil geologists wrap themselves in dogma.

There is hard science, lots of it, that says oil is not due to algae, but you wouldn't learn that in petroleum science class.

Check out today's Oil Is Mastery blog post and subsequent comment on George F. Becker. Interesting science that contradicts "fossil" theory, which has never been rebutted by "fossil" theorists.