Oilman is a crook

[Pat53]

The whole thought of the sky is the limit on oil prices................not sure if I agree, the world market will not support it. I am usually wrong. But the world economy will go into a depression that we have never seen on high oil prices, if they never lower the prices. It's not sustainable.

Yup, there is no way this economy can withstand $4 gasoline. I'm sticking to my prediction that oil will fall to $40/bbl and copper to $1/lb within 2 years..... unless Bernanke embarks on another massive money-printing scheme. If he does, buy as much gold as you can !!

 

[rkusek]

$20 a gallon for gasoline are you insane. Take everything you buy times 5. $15 for a loaf of bread, $20 for a hamburger, $25,000 for a cheap boiler, $75,000 for a real nice boiler, $150,000 for a basic car, etc. We will be back to sticks and stones far before we ever see $20 gasoline.

That is all Bernanke can do now is print money. The Chinese holding of T-bills is almost non-existent from a peak in March 09 and they are have been getting out of the longer term US debt as well since Oct '10. The Chinese share of the total US debt peaked in Oct '10 and has declined every month since then. The T-bills mature in less than 1 year and acct. for about $1.7 trillion of our $14+ trillion debt from what I have read. That means in the next 12 months we have to renew or replace the buyers of those T-bills and the Chinese definitely seem no longer interested in being a part of that. We are truly tapped out!! The US Govt credit card is at it's limit and the banker will loan no more.

 

[Frozen Canuck]

Why cant we withstand $4? Some nations in Europe are doing OK at $12! Are we 3X worse than they? I sure hope not.

AFA $40 oil.....no way will not happen even the Saudis will cut back production at that price, then the price goes back up as demand rises vs production.

See were all addicted to the stuff & the cheap stuff is going fast.... if not already gone.

Commodities ie. real tangible things will all remain high as oil is used in their production also, every mine I have ever seen uses alot of diesel to get product out of the ground.

Bernanke will have no choice but to print more money to make interest payments on the national debt if nothing else.

Unless America is willing to offer something else to China in exchange for buying your debt. I hear they would like your Navy, maybe you can make a deal!

I agree buy as much precious metal as you can (the real stuff) not futures or options. Then buckle up tight..... it is going to be a bumpy ride.

 

[Frozen Canuck]

$20 a gallon for gasoline are you insane. Take everything you buy times 5. $15 for a loaf of bread, $20 for a hamburger, $25,000 for a cheap boiler, $75,000 for a real nice boiler, $150,000 for a basic car, etc. We will be back to sticks and stones far before we ever see $20 gasoline.

That is all Bernanke can do now is print money. The Chinese holding of T-bills is almost non-existent from a peak in March 09 and they are have been getting out of the longer term US debt as well since Oct '10. The Chinese share of the total US debt peaked in Oct '10 and has declined every month since then. The T-bills mature in less than 1 year and acct. for about $1.7 trillion of our $14+ trillion debt from what I have read. That means in the next 12 months we have to renew or replace the buyers of those T-bills and the Chinese definitely seem no longer interested in being a part of that. We are truly tapped out!! The US Govt credit card is at it's limit and the banker will loan no more.

Nope not insane, at least I hope not ;-)

What we will have to do sooner or later is get back to community based lifestyles (whether we do it before or after oil becomes too precious to waste is up to us), buy things locally instead of shipping it cross country or further, get back to being more self sufficient instead of waiting for an easy fix supplied by someone else (using cheap oil of course). Yes everything will cost more... no getting around that as we run out of cheap oil (at least not until we change the way we think/behave).

 

[Frozen Canuck]

BTW some nations in Europe have already seen $20 gas & they are still using transport, just not as wastefully as we are. So I hope we will survive too just like they did.

 

[rkusek]

I don't think you can compare the US to Europe. We became what we are because of the expansive, diverse territory and the the different types of people who settled it. The whole "melting pot" thing combined with the potential of great rewards for you hard work, innovation, efficiencies produced a "sky is the limit" mentality. Tell everyone including doctors, lawyers, businessmen, entrepreneurs, and oilmen that they going to have to have to drive little compact smart cars that get 90mpg and top out at 40mph, give them all universal health care, and take away every incentive to be sucessful and before long you won't have any doctors, lawyers, businessmen, entrepreneurs, or oilmen left. Stick us into 900 sq ft government housing with only public transportation, take away our guns, pay us all the same wage and retirement, put Dr. Kevorkian in charge of medical care and many of us would probably commit suicide without any assistance.

I will never forget the foreign exchange student my sister and her family had about 5 yrs ago from Germany. Real nice kid, polite, well mannered but one of the things we remembered most from his time here was how amazed he was at how ambitious we were in our careers, how much our families got together to visit, how big our homes and cars were (all definitely middle class), and yes how much gas we burned. It was obvious that he was exposed to none of this at home. It made us all appreciate what we have for sure.

 

[Frozen Canuck]

Yes & we did it all on the back of cheap oil, that was the real engine driving the "sky is the limit" train & that engine is close empty & there isnt a fuel station in sight.....at least not a fuel station that we can afford.......so we are going to have to change whether we like it or not & many of us wont. I am sure many europeans did not like the changes they had to make post WWII.....they had few choices either change, move or perish. For many of us moving to a new nation is a no go so we will have 2 choices & the last one is permanent.

I hope having to conserve/use less does not drive us into a suicide frenzy. I am not sure if the Grand Canyon can hold us all should we decide to step off the edge rather than make do with less. Now there is a volume calc to try & wrap my brain around. Maybe they should take away the guns.... just in case it turns into a homicide frenzy! Thats a lot of bodies to clean up! Maybe if we kill each other to the last one standing then the continent will be open for someone else to settle. I hear south east asia has a large population that is looking for room to live.. NAH never mind lets just take away the guns & avoid temptation.

I have exposure to western europreans as well on an annual basis at the cold climate building expo held in Edmonton. Yes they are polite sometimes to a fault, as until they have you in a private conversation they wont really tell you what they think of how wasteful we are with the resources we use. For them the equation is simple conservation of the resource is #1 all other factors are considered only while keeping #1 in the forefront of your thoughts. Many have told me that what they see on their trips over here would simply never be approved by the governing bodies in their nations as it is far too wasteful of non renewable resources & is therefore prohibited. They are not limiting their observations just to building science/practice either, as much of what they see in our nation/communities is to them very simply..... unsustainable.

OK lunch time is over back to work for me.

 

[flyingcow]

Yes & we did it all on the back of cheap oil, that was the real engine driving the "sky is the limit" train & that engine is close empty & there isnt a fuel station in sight.....at least not a fuel station that we can afford.......so we are going to have to change whether we like it or not & many of us wont. I am sure many europeans did not like the changes they had to make post WWII.....they had few choices either change, move or perish. For many of us moving to a new nation is a no go so we will have 2 choices & the last one is permanent.

I hope having to conserve/use less does not drive us into a suicide frenzy. I am not sure if the Grand Canyon can hold us all should we decide to step off the edge rather than make do with less. Now there is a volume calc to try & wrap my brain around. Maybe they should take away the guns.... just in case it turns into a homicide frenzy! Thats a lot of bodies to clean up! Maybe if we kill each other to the last one standing then the continent will be open for someone else to settle. I hear south east asia has a large population that is looking for room to live.. NAH never mind lets just take away the guns & avoid temptation.

I have exposure to western europreans as well on an annual basis at the cold climate building expo held in Edmonton. Yes they are polite sometimes to a fault, as until they have you in a private conversation they wont really tell you what they think of how wasteful we are with the resources we use. For them the equation is simple conservation of the resource is #1 all other factors are considered only while keeping #1 in the forefront of your thoughts. Many have told me that what they see on their trips over here would simply never be approved by the governing bodies in their nations as it is far too wasteful of non renewable resources & is therefore prohibited. They are not limiting their observations just to building science/practice either, as much of what they see in our nation/communities is to them very simply..... unsustainable.

OK lunch time is over back to work for me.

Sorry to be grumpy. We "ain't" europe(never have been). Should never have plans to be like them. We bailed 'em out once............But i digress? Not sure what that means. But here's the deal. The free market should help us decide on rates, not the damn government and the economists that they hire. Live and Die by the sword!!

 

[EricV]

In my neck of the woods, marcellus shale, the wells are being drilled and fracked (at least in PA) but intentionally shutin...waiting until the prices jumps to produce. So it isn't just supply and demand affecting the prices....there is also "business" that comes in to play....commonly called greed.

There's no way the demand or supply of oil is driving the price alone....there are so many other interests.

No, supply and demand is not the only problem but this is a great illustration of supply and demand controlling prices. Speculators will buy that gas when the price is right, hence choking supply, driving up the price that the demand (us) will pay.

You said it, GREED is the bottom line.

greedy speculators
greedy lobbys
greedy politicians
greedy consumers that feel they have the right to drive a Hummer to the soccer field because we are entitled to.

If more folks looked at energy like the folks that gather here it would help tremendously. A little environmental concern would go a long way.

Unfortunatley the country is too geographically large for more public transportaion. high speed rail would be one great way to help.