Archives

Last I checked, oil was at $54.

My concern: the price has to be high enough for exploratin and drilling.

Don't know today's break-even point but in the late 80's under $20 was unprofitable.

No - I'm not sympathizing for Big Oil.

Hard to call that one. I can’t see the price going much lower but I’m no financial wizard. If it does go lower it won’t be there for long before it goes back up to some equilibrium price. Even with the world economy the way it is, I think the current price is way too low. I’m not complaining though! I’m taking advantage of it and trying different hypermiling techniques now when the financial impact of a screw-up won’t cost me a day’s wages (after taxes of course).

I don't think it will be low for long, but the consequenceds could stall alternative energy as well as drilling.

I'm not a Trump fan but he did predict this right.

http://www.foxnews.com/story/0,2933,430583,00.html


TRUMP Sept 30th: Well, I think there is always a silver lining, and the beautiful silver lining to this is that oil is going to drop down to nothing, it's about time. And there is nothing OPEC can do about it. And they're taking tremendous losses like everybody else. And I love the fact that it is almost a cleansing action.
It's cleaning up — oil got up to a phony price of $150 a barrel, and I think oil could go down to $20 or $25 or lower depending on the severity of the so-called recession, meaning depression. I love the fact that oil dropped, I guess, over $10 a day, and it will continue to drop, and that is the beauty.

I have heard that a lot also, price too low to make exploration for oil or oil alternatives unprofitable. How can any energy company rationalize that thinking for their long term strategy? It is going to take years, not weeks or months, to develop anything. Are they thinking why invest in alternatives; oil will always be a cheaper alternative? Oil will always be around so why try anything else? I would think they would be thinking that if they start now, they will be on the forefront of any new technology. That would give them a good jump on the competition and a better share of the market. Might even give them THE technology that will be the future fuel if they find the right one in time and become the market standard!

Granted, it is impossible to estimate what the cost of alternatives would be. How much to spend now to make money later. But the inevitable is coming, oil will not be the major source for transportation fuel in the future, in the nearer that farther future is my thinking.

I remember in 2004 my nephew who worked logging new wells that were drilled told me if oil ever gets over $30 a barrel they will be making a killing.....I am a believer in the high price of oil being the biggest contributing factor in bringing the economy to its knees.Screw OPEC!!!!! And the speculators who helped them.