Saturday, July 19, 2008
Natural Gas: Cliffdiving
Here's WTI (crude oil):
The actual "price" for oil - the price at which in a tight demand environment it could conceivably move is probably in the $90-$100 range, so there's further to fall.
It's all very well to talk about China and India expanding, but one must also ask the question "at what price can they afford to buy oil on the world market?" Recent developments have shown that they can't at current prices.
One of the things that just amazes me is that so many people accept without question the idea that the only monetary interests affecting public debate are those of "big oil".
I left it in 1960 because the price of oil was stuck at $2/barrel and no increases in sight because they were bringing in all those big fields in the Middle East. The only way I could keep my job was to go to Iraq. I hate the desert and heat, so I opted for another path. Prolly a good decision.
What I see though is more boom and bust if this country doen't put together a practical energy plan to get us from fossil fuels, which are finite, to the sustainable energy sources of the future.
Conservation, alternative energy, and new technology will all help, but the enviros believe that is all we need to do. They have no idea of the scale of the problem.
But the greatest thing that could happen to this country was the price to go as high as it did(if not higher)—to get people to pull their head out of their...
Seems that people are more than willing to leave their heads there so as not to disturb anything.
We need to drill, we need to go nuclear, we need to find an alternative source of fuel, we need to be independent so we can't be held hostage! There are plenty of reasonable, environmentally safe, that everybody could be happy with.
We are the number 3 oil producer in the world, we just use more than we produce—if someone comes up with an alternative the oil companies could still sell to the rest of the world and we would have favorable cash flow problems!
It's not an emergency so why would we dip into the EMERGENCY oil reserve? Why would we scream about blood for oil when we could get our own oil? Why??? It's politics plain and simple. Not about right and wrong—just about power!
Like I said I'm tired of high gas prices, but I don't know if it went high enough, or that people have lost enough jobs, or gone into enough debt, or realized what's necessary to remove their head from that safe warm comfortable place...
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