Home Forums Hunting & Shooting Hunter's Campfire Interesting article--oil to stay at/below $80 permanently

No, it's not.

Supply/Demand, and whole lotta speculation. The majority of the world's crude oil is owned by narcissitic, evil, semi retarded dictators. I would submit we are closer to $150 crude than $50 crude.

Kashagan?

Can't believe it's taken so long for that project to production. I was involved with the Parker Rig when they were drilling the first hole, 15 years ago. But considering what a cluster that was, I'm not surprised at the delays, and the cluster was on the part of the expats not the Kazakhs.

So is the field as nasty as predicted with high H2S, CO2 and pressures?

I stand corrected, I shouldn't have used the wording "..out the back end..". Point being that Oil co.s make big bucks off the other stuff too, whether gas comes out of the process or not. I have no problem with this, just get a little rankled when some oil execs. whine about the cost of production of gas when they know full well they're making a lot of money off the other stuff.

We all bitch about the price of gas, but it is like 22 ammunition. It hasn't gone up with the cost of everything else, when we see $3.50/gal when we used to buy it at $.32/gal. If you figure out how much time you had to work to buy a gallon of gas in 1970 when it was $.32 vs how much time it takes now at $3.50. you had better be getting at least the same value or you are sweeping floors at McDonald's and that's nobodies fault but your own...

As much as people complain about the price of gas, I don't see them moving close enough to their jobs to walk, or trading in their cars for bicycles or horses. Relatively inexpensive hydrocarbons have been the biggest boon to the quality of life we enjoy.

Big business makes something everyone wants or needs and hence make a profit, I don't see how that is a crime? BTW, if you look at the Forbes 400, You'll find few of those listed made their fortunes from oil and gas, most from technology, investments, or food.

The book 'The Prize' by Daniel Yergen is a history of the oil industry. I recommend it.

Yes it is. Demand has fallen. Guess what the price of oil did? If the Saudi's had cut production, guess what the price will do?

I'm sure it's better to stomp your feet and claim it's the mid term elections, etc.

word

I wish I could give tours to refineries and the shops that keep them running. Then you'll ask why gas isn't $7.00 gallon all the time.

It is a bit more complex as it's not as simple as a factory producing widgets where the factory can simple crank up or throttle back the factory.

Every field has a few years were production peaks, then it starts a decline for the next 20, 30 or however many years it continues to produce. As a field ages it's more expensive to produce the oil, same number of workers, equipment that is wearing out and lower production.

If oil companies don't continually invest in new exploration, then they'll soon not be selling enough oil to cover their costs, but if they invest too much too soon they cut themselves off by putting too much oil on the market. Don't invest enough and they won't produce enough to keep the lights on no matter what the price of crude. Then you through in countries using oil as a political tool or weapon, traders and speculators and it's much more complex than simple supply and demand.

I wasn't around in 1970.....,,


In 2000 gas was 1.25ish in the Midwest. It's now three times that on average. Very few people (outside the oil field or health care) can say their wages are triple what the were in 2000.

Dink

All this discussion on who makes how much, and why prices vary so much, and who's fault is the price of gasoline mandated by is WAY over what my poor thought process can comprehend. What I do know is that I'm headed for central South Dakota early Sunday morning, and would be both happy and surprised if prices are the same a week later as they are going out. I can't help myself for thinking the elections are more of an influence on current oil prices than anything else. Prices have dropped in NE Wisconsin around 50 cents/gal in the past month, a steady decline of 10 or more cents/week. Election coming Tuesday; yes I cast an absentee ballot.