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Sandmannd

Oil Prices gonna rise again

34 posts in this topic

I heard on the radio today that they are cutting back production on oil by over 1.5 million barralls a day!! They are doing this to get the price back up so they can make more money. That's what I heard anyway.

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I heard they were cutting production as well. One can only assume its becuase they saw profits dip slightly, they can't be having any of that.

I wonder why they didn't do this when gas was $0.99 a gallon, they could have cut production way back to get profits up back then. I suspect they just realized that people will still buy gas no matter what price is. I think we lost our credibility with the oil companies, they know they have us wrapped around their little finger now.

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I heard they were cutting production as well. One can only assume its becuase they saw profits dip slightly, they can't be having any of that.

I wonder why they didn't do this when gas was $0.99 a gallon, they could have cut production way back to get profits up back then. I suspect they just realized that people will still buy gas no matter what price is. I think we lost our credibility with the oil companies, they know they have us wrapped around their little finger now.

Actually the last numbers I heard US demand is down aprox. 10% and polls have shown that people plan to continue conserving even if the price goes down. Of course we need to wait and see if this is actually true.

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Alot of that 10% is do to people driving more efficient cars now, and alternative fuels.

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This cutback is from OPEC who is partially doing this becuase of pressure from countries like Venez. Russia etc. OPEC countys can still make very good money even at $40 barrel oil but many other countries are to dependent of higher oil cosst to fund there government run economies.

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If memory serves me correctly, OPEC already cut production once when the price dropped to about $140 or so. Had no effect.

I remember a couple years ago we were arguing about supply and demand and I was a staunch supporter of the concept. Not so sure about my position any more.

Bob

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Typically its hard to argue against supply and demand. Its a pretty basic concept. But in terms of oil being a global commodity that can be manipulated in so many ways I can see it being hard to see direct correlations at times.

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OPEC or anyone else cutting production at a time like this is precisely the reason the U.S. needs an intelligent energy policy going forward that at least puts on us on the path, however long, of being less dependent on foreign oil.

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The lower gas prices that we've been experiencing the last few weeks is going to be the only saving grace for the economy in the near future. If they jack back up, watch out folks, it's going to get really ugly.

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In my opinion, the problem with supply and demand in the oil market is two fold. First, OPEC is a huge monopoly that artificially manipulates supply and demand has very little ability to change (generally inelastic in economic terms). Second, OIL has become a trading commodity and thus the supply-demand curves are horribly scewed by speculative investment actions. OPEC's reaction now is based on a really huge demand change (for an inelastic product like this 10% is a GIANT change) but the effect won't be the same as you'd expect from a true supply-demand curve because the price is still artificially above the supply-demand curve price.

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Venezuela is having rolling brown outs because they can't pay for their power - in spite of being a huge oil producing country.

Russia pulls out of Georgia too - because oil prices are going down.

Excuse me if I don't shed a tear....

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Drill Baby Drill!!! especially off shore!!! why??? because it keeps the price HIGH Baby High!!

We need a drastic change, these numbers are 2 years old imagine the cost today, we need desperately to loosen the hold of OPEC but at what point would it cost us 10X or 100X for a oil change with a hydrogen or other alternative fuel, I think the greedy dogs will always have us over the proverbial barrel, Pun intended. LOL

Finding Costs by Region for FRS Companies, 2003-2005 and 2004-2006 (2006 Dollars per Barrel of Oil Equivalent)

Region - 2003-2005 - 2004-2006 - % Change

United States: Onshore, 7.05 - 11.34 - 60.9

United States: Offshore, 45.76 - 63.71 - 39.2

Total United States 10.40 15.62 50.2

Canada 17.43 19.39 11.2

Europe 10.26 22.79 122.1

Former Soviet Union 13.74 NM NM

Africa 16.19 25.66 58.5

Middle East 4.95 5.26 6.3

Other Eastern Hemisphere 9.50 12.59 32.6

Other Western Hemisphere 26.56 42.59 60.4

Total Foreign 12.46 19.51 56.6

Worldwide 11.38 17.23 51.3

Notes: NM = Not meaningful. The above figures are 3-year weighted averages of exploration and development expenditures, excluding expenditures for proven acreage, divided by reserve additions, excluding net purchases of reserves.Natural gas is converted to equivalent barrels of oil at 0.178 barrels per thousand cubic feet. Sum of components may not add to total due to independent rounding.

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they need to raise the price of oil or at least stop the free fall. remember it is part of our ecenomy and like it or not people had money tied up there and need to get some back. A happy medium is the desired result: stop the drastic drop in prices while preventing another "gouging". States like ND, WYO, and such need oil above about $50/bl to keep the oil patch jobs there.

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I'm betting that 85million barrels/day will be the peak of oil production for our planet. Maybe not, but I think it has some legs the way our 'slowdown' is shaping up.

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they need to raise the price of oil or at least stop the free fall. remember it is part of our ecenomy and like it or not people had money tied up there and need to get some back. A happy medium is the desired result: stop the drastic drop in prices while preventing another "gouging". States like ND, WYO, and such need oil above about $50/bl to keep the oil patch jobs there.

Like we need to feel sorry for the oil speculators. How about they live of the billions of dollars they banked last year.

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Originally Posted By: papabear
they need to raise the price of oil or at least stop the free fall. remember it is part of our ecenomy and like it or not people had money tied up there and need to get some back. A happy medium is the desired result: stop the drastic drop in prices while preventing another "gouging". States like ND, WYO, and such need oil above about $50/bl to keep the oil patch jobs there.

Like we need to feel sorry for the oil speculators. How about they live of the billions of dollars they banked last year.

Putting money into commodities is like and any other investing venture. You want the opportunity to make big $$$ you are going to take some risk, and sometimes you get bit. My IRAs and 403bs are getting hit pretty hard right now, probably down 30% or more overall and I am not in the risky stuff. Even if things turn around in the next couple years this is going keep me working for a few more years(unless I win the lottery grin )than I had hoped. I don't feel sorry for them, they made a pile of money when things were good and could pulled back a little and not been so greedy.

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it is not the speculators that need help it is the many of pensions and 401ks that have or had money in oil that I am concerned about when the price dropped so fast. Speculators and such pushed the price to unrealistic levels and it was inivetable that the price would drop. Just like housing, artificial demand created by easy credit artificialy raised the price of homes until it was unsustainable now look. The house of cards fell

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Prices are lower then they were a year ago. That must have [PoorWordUsage] off some rich bag oil folks. So they have to cut production so they continue to get rich while the world's economies fail.

Part of the problem is that we have too many soccer mon's that feel the need for an Expedition or Yukon to drive their 1 or 2 kids around in. Thats where part of the real problem is. Why do people feel the need for huge SUV's just because they have a kid or two?

If we really want to get even with these OPEC pigs we need to cut our domestic demand. Give them less money. Yes you have a kid or two. But NO you dont need a mini-van or an a full sized SUV.

Whatever happened to people dragging their kids around in a "family sedan"?

[Admin Note: Please read Forum Policy before posting again. Thanks]

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I know there were some retirement funds that put tons of money in the oil commodities(wheat and corn too) and they were part of what caused the spike. I know where my IRAs and 403Bs are invested and I made sure that they were in more of the brick and mortar type of investments, the more steady funds that are normally in the 10 to 15% range, not the risky "win big or lose it all" funds. These retirement fund managers that put huge amounts of money in the commodity markets should be fired. That is way too risky for actual retirement funds. I feel sorry for those that rolled the dice and loss, but that is the nature of the game.

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Yes, I drive a full sized truck. I'm in landscaping. When I'm no working, I'm hunting, fishing (towing boats) or icefishing (my portable ice hosue in my truck bed). SO I use my truck for its intended purpose. As soon as I can afford a second vehicle, trust me I'll be getting a smaller 4 banger for driving when I dont need my truck.

My point above is that demand here is so high because we have too many people driving huge gas guzzlers they really dont need. Families with 2 or 3 kids could get away just fine with a 4 cylinder car thats cheaper all around.

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2 reasons they will use...the commercials show me that I need one and it isn't cool to have a sedan....suv's and mini vans are the in thing for now. Hopefully that can change some.

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When oil prices were skyrocketing the dems blamed Bush and the reps blamed the dems in congress. Now that the prices have fallen, who should get the credit?

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The consumers for starting to make smarter choices about oil consumption. Dont give either party credit all they did was argue, spend tax payers dollars on [PoorWordUsage] and get nothing accomplished.

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The consumers for starting to make smarter choices about oil consumption. Dont give either party credit all they did was argue, spend tax payers dollars on [PoorWordUsage] and get nothing accomplished.

Now there is a fact!!!

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