6.8 Million paid for a #5 ...

Michael, personaly I have no problem with it at all, but if anyone seriously believes that drilling new fields will lower prices their nieve, take a look at North Sea oil (Brent crude) that produces less gasoline per barrel and is only $1 per barrel cheaper, I believe that Gulf crude is also of fairly low quality (like Texas crude), opening new fields (unless very, very high quality crude) will have little or no effect on gas pricing.

Regards

Gerry

Gerry, it’s simple market economics not nievete!

Brent crude’s price is a result of the world market price.

If the supply relative to demand goes up the price will come down.

We are on a path to destruction in economic terms and we have no one to blame but ourselves.

If 2/3 of the cost of a gallon of gas is the crude oil, the price will come down with the drop in crude prices.

It just like HIs, flood the market and everyone’s prices go down.:frowning:

“Simple” market economics has never applied to energy costs, an will not do so in the future, the decline in future production in the middle east in the next 20-30 years will drive down supply.

We need plan “B”

Regards

Gerry

Gerry, that simply is not true.
Do you belong to the Sierra Club?

The market will determine the price.

What do you offer as evidence?

I’ll hold my ammo for now.

Bring it on :wink:

Regards

Gerry

Please explain your “common sense”, after all the world seemed flat at one time by common sense.

Do you mean the 50 year old prediction of the Hubbert peak?

BTW-neither us us knows just how smart the other is. Smart a$$ maybe;-)

The equation is real simple we have a finite supply and a growing market, there is no way it can be sustainable. ergo pricing cannot fall.

Regards

Gerry

More like this:

A. (unknown reserves) +(increasing demand)=(unknown future price)

B. (known reserves) - (untouchable oil)= price increase

Which is the better bet?

BTW- Hubbert peak is a Theory not proven by any means

China’s oil will come from Florida.

Or a bit farther south.:wink:

Hubbert is the best model we have, are your "beliefs going to be a problem again Michael, should we take this straight “downstairs”? :mrgreen:

Try plan “C” reduce consumption of fosil fuels and develope (or hasten developement) of sustainable energies.

Regards

Gerry

Gerry my “beliefs” aside, you have not provided much of substance for consideration.
Your belief that we are running out of oil comes from somewhere doesn’t it?

Renewables and alternative fuels will come when the time is right.

In the mean time we should drill away.
We’d be fools to let the enviro’s control energy policy.IMHO.

frankly,I don’t believe mankind has even dented the earths oil pools in just over a hundred years, and I have seen suggestions by geologist that agree. It has been awhile, but if googled, I bet they could be located. Oil being produced naturally was not a one time occurance, more is being made all the time. I know some claim it takes millions of years, but they said the same about coal also.

I doubt it Ken, but stranger things have been known. The problem is those who think drilling in FL or Alaska is the cure, remember the growing economies of the 3rd world will make the western worlds energy consumption seem small.

Regards

Gerry

Gerry, China has already supplied Cuba with a billion dollars to drill for it in the Florida straights.

Regards

Gerry

Not a cure but part of a multifaceted solution.

If we don’t drill they(3rd world) will have no chance at prosperity.

The present world ecomomy will run on oil for at least the next century.

Maddening. :mad:

Somewhere I have an article from 2004 or 2005 written by Peter O’Dell of Erasmus University that states we have added 1500 billion barrels of oil to the world oil reserves since 1970, while world consumption over that time totaled 800 billion barrels. I could be incorrect, but I believe that Hubbert’s peak was also based upon our ability to recover only 20% of the oil from any given reserve, whereas today we can recover about 35% and some oil industry folks have stated that if oil is at 80 bucks a barrel it is then profitable to recover up to 55% or so. That amount of extra recovery would certainly add to the total reserves.

I also read an article some time back that oil companies (yes those dreaded bastards that make somewhere between 7 and 9 cents per gallon net profit) stated that they are finding that oil fields that were thought to be dry have actually been refilling. That may have been in the WSJ. In that case it may back up the 50 year theory that oil is not “fossil fuel” from dinosaurs, but rather an abiotic process from molten lava and other geologic stuff way on down there in the earth.

China coming into the oil age will certainly increase usage over the next decades, but technology should also make it able to recover more oil from each well.

I’m all for other types of energy, but ethanol ain’t one of them. When it becomes profitable for someone to “discover” an alternative fuel, you can bet it will happen quickly!

Just my thoughts for the night.

Oh, and none of this helps the wallet at $3.43 for premium!

That sounds like a lot of common sense your using there.:wink:

The rest was great too!