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Wednesday, October 10, 2007

$125 per barrel of oil is not far off

Mr. Abdullah AlAteeh,The Qatari minister of energy and industry, stated that the fair price of one barrel of oil should exceed $100 and possibly $125 if inflation is taken into account.

Energy production is only a fraction of what oil and gas (fossil fuels) provides the world. Did you know that Urea (Fertilizer) is made out of fossil fuels? So are many products like plastics, medicines, roads, wire insulation, feed stock, fabric, tables and much more.

It’s ridiculous to assume that it can be replaced. In reality nothing can replace it as we stand today. Funding is needed for R&D to look for logical and economical replacements for it.

What fossil fuels we have has to be used scarcely. Immediate action is needed to avert global catastrophe when its production dips below the world demand. It’s not a matter of if, but when.

There is not enough natural fertilizer in the world to keep everybody fed. Countries are not going to go away and die peacefully. Wars are inevitable. He who controls fossil fuels controls the future.

This mediocre attempt to use corn or soy beans is a farce. There are studies that estimate that the amount of energy put into producing a gallon of ethanol is almost as equal if not more than the gallon can produce.

A hydrogen cell is another farce. As anyone who worked near an MRI can tell you, Hydrogen molecules are the smallest and can actually squeeze out thru metal and tanks leak all the time. Additionally you would require a huge tank for the same task and is susceptical to explosions during an accident as it is under extreme pressure.

Real and scientific research is needed and needed NOW. We don’t need to be pacified.

I believe that this is the most important issue facing all of humanity.

Comments

Funny, I just checked and the ppb of oil is falling.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 11, 2007 at 05:47 am

Oil prices are subject to many factors, political, economics and whether. The price of oil has no where else to go but up. Extreme pressure is being exerted on producing nations to keep the flow and raise production to the max. This is the pacification phase.

Oil is a finite commodity and as such a point is going to be reached where supply can’t meet demand. Steps have to be taken now to prepare alternatives for that fateful event. 

The world as a whole has to share in this task. No other calamity facing us today can come close to its sheer effect on all our lives and on so many levels.

By the way 2Hotel9 nice motto “The one hope of the

doomed is not to hope for safety”

nalhamid on October 11, 2007 at 08:58 am

Oil is priced in $$$$. As the dollar falls in value, oil prices go up.


“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark D on October 11, 2007 at 09:19 am

2h
Have you checked what the DX Z7 is doing? 77.97 ouch....that’s gonna hurt.
It was over 1.25 when oil was $22
Now it’s 78 and oil is $83

Dollar Index


“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark D on October 11, 2007 at 09:28 am

Oil is priced in $$$$. As the dollar falls in value, oil prices go up.

By your reasoning, then, Mark, if the dollar rises, oil prices will go down, right?  You just don’t understand markets, along with a lot of other things.
In our system, things are worth what people are willing to pay for them.


If life doesn’t begin at conception, why do they call it birth control?

robert108 on October 11, 2007 at 09:48 am

All of your babble about currency is meaningless until you name the Democrats that stole your city’s money. That is the currency you should be concerned about, markie.

nalhamid, they are words to live by. As are Nex Pro Inhonesto.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 11, 2007 at 09:49 am

Oil is a finite commodity and as such a point is going to be reached where supply can’t meet demand.

Hate to break it to you, but another knucklehead beat you to this rant; his name was Thomas Malthus, and you can Google him.  He was wrong too.


If life doesn’t begin at conception, why do they call it birth control?

robert108 on October 11, 2007 at 09:50 am

r108

Mark, if the dollar rises, oil prices will go down, right?  You just don’t understand markets, along with a lot of other things.

Yes it would go down....
and if it goes below their comfort zone(take a look at Dubai, their comfort zone has exploded) they will cut production.


“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark D on October 11, 2007 at 10:23 am

2Hotel9 I think you meant Potius mori quam foedari.
That, I believe, is what you wanted to say.

I never said I had the idea, but you only have to look at the U.S. oil production to know that oil is finiate.

nalhamid on October 11, 2007 at 12:30 pm

No. Not sure where you got that. Death Before Submission.

Oil production in America is restricted by environmental regulation, not by lack of oil. We have not built a new refinery in America since the 1970s, and our domestic drilling and extraction are heavily restricted.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 11, 2007 at 12:50 pm

2h

Oil production in America is restricted by environmental regulation, not by lack of oil

Than why has oil flowing out of the pipeline gone from 2.2 million bpd(max flow) to 700,000 bpd?
Goto DOE and you will see the decline from it’s peak in 86.


“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark D on October 11, 2007 at 01:10 pm

Restrictions placed upon drilling/extraction have forced a stead drop in domestic production.

Then again you are terrified to even utter the names of the Democrats that have stolen your city’s money, no wonder you do not know what is happening anywhere else in America. Now cry for us some more, squeeze out a few tears. That is always entertaining.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 11, 2007 at 01:20 pm

2h

Restrictions placed upon drilling/extraction have forced a stead drop in domestic production

Please.... show me the restrictions.

Did you use the same research techniques for this info as you did when tried to figure out the difference between a town and s city?


“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark D on October 11, 2007 at 01:38 pm

There you go. Have fun.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 11, 2007 at 01:45 pm

True, but existing wells are drying up. What you’re talking about is new exploration in protected areas. My point is existing wells allowed the U.S. to be at one time the largest oil producer in the world. Now it is only producing a fraction of what it used to.

All the major players are moving aggressively in the area. Notice that the Sudan had an on going domestic problem for 30 years. Why all of a sudden this increased and non stop criticism of the regime there? The answer is China. China signed a long term agreement with the Sudan for oil exploration and found huge oil fields there.

It is estimated that there are 20,000 Chinese “workers” in the Sudan. It is believed they are actually several red army brigades, there to protect the oil fields from rebel attacks. These rebels are allegedly funded and armed by the U.S. to make the Chinese’s life as miserable as possible. Note not a single U.N. security resolution was taken against the Sudan, due to the threat of a Chinese veto. 

Iran was a nuisance ever since the revolution, but no serious act on the part of the U.S. has ever materialized. Iran then went into agreements with Russia and China for its oil. Then it showed up on the radar screen.

As Lord Palmerston observed: ‘Nations have no permanent friends or allies, they only have permanent interests.’ And as such each nation evaluates its “friendship” based purely on how much interest that friendship reaps. Pure and simple without all the sentimental hog wash you hear day in and day out.

These movements are but the first chess moves of many to try and dominate the oil production. I envisage we are on the verge of major wars that will last for several years resulting in dire misery and retaliation from the weak. In all likelihood it will be an asymmetrical war.

Sorry, but I tend to forget myself when writing.

nalhamid on October 11, 2007 at 02:14 pm
Avatar for Bike Bubba

It would be interesting to see what the OPEC commissioner would have said back in the early 1980s when oil hit around $35/barrel....I would have to guess that they would have assumed that high prices were here to stay as well. 

More or less, the Qatari is assuming “ceterus parabus” with consistent growth, and I don’t know that we can assume that.

Bike Bubba on October 11, 2007 at 02:25 pm

Agreed, but in the 1980’s the main oil consumers were the west and Japan. Today India and China are importing a huge amount of oil to fuel their humongous economies. In the 80’s it demand was well within the level of production. Many countries produced half of their existing capacities to keep prices artificially high.

Today production is at its maximum level, without a barrel to spare. Any disruption of oil production even for a few days may result in short term havoc.

nalhamid on October 11, 2007 at 03:18 pm

Today production is at its maximum level, without a barrel to spare.

This is false.  Brazil recently brought in a deep water platform off its Atlantic Coast, and we just struck a deep water field in the Gulf de Mexico.


If life doesn’t begin at conception, why do they call it birth control?

robert108 on October 11, 2007 at 03:31 pm

robert108

Everything is relative; we’re talking about 90 million barrels being produced every single day. If Saudi Arabia would go off line for any extended period, no oil field anywhere can compensate that loss. A couple of hundred thousand barrels here and there isn’t going to help that much. By the way “not a barrel to spare” was dramatization on my part. You can always squeeze a few hundred thousand here and there. But overall demand is rising and whatever fields remained untapped has been with the exception of some protected areas.

nalhamid on October 11, 2007 at 03:42 pm

Everything is relative; we’re talking about 90 million barrels being produced every single day.

You made an absolute statement, and it’s wrong.  You based your chain of logic on that premise, so the rest of your conclusions are also wrong.  GIGO


If life doesn’t begin at conception, why do they call it birth control?

robert108 on October 11, 2007 at 03:51 pm

robert108
What statement are you referring to specifically?

nalhamid on October 11, 2007 at 03:56 pm

Today production is at its maximum level, without a barrel to spare.

Your initial premise for everything that follows.
Read up on Malthus; it might give you some perspective on your false scareology.


If life doesn’t begin at conception, why do they call it birth control?

robert108 on October 11, 2007 at 04:05 pm
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