Oil marches past $130 a barrel
05-21-2008, 03:36 AM
#1
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Oil marches past $130 a barrel
When will this insanity end?
Shortage fears push oil futures near $140
By Carola Hoyos and Javier Blas in London
Last updated: May 21 2008 10:57
Fears of a shortage within five years propelled long-term oil futures prices to almost $140 a barrel, further stoking inflationary pressures in the global economy.
http://www.ft.com/cms/s/0/c2955660-2...nclick_check=1
Shortage fears push oil futures near $140
By Carola Hoyos and Javier Blas in London
Last updated: May 21 2008 10:57
Fears of a shortage within five years propelled long-term oil futures prices to almost $140 a barrel, further stoking inflationary pressures in the global economy.
http://www.ft.com/cms/s/0/c2955660-2...nclick_check=1
05-21-2008, 03:45 AM
#2
HOSED BY PBS AGAIN
Joined APC: Mar 2005
Posts: 1,713
Ummm, what's the problem? (Being said VERY SARCASTICALLY BTW). The oil companies have the RIGHT to make a small "10%" profit, regardless of who is hurt in the process. Many argue it's a capitalist system and this is GOOD, so why argue with them? Oh well, when a few more airlines go bust and they lose their jobs, they'll see just how good a system this really is........
05-21-2008, 04:55 AM
#3
Retired
Joined APC: Feb 2008
Position: whale wrangler
Posts: 3,527
Ummm, what's the problem? (Being said VERY SARCASTICALLY BTW). The oil companies have the RIGHT to make a small "10%" profit, regardless of who is hurt in the process. Many argue it's a capitalist system and this is GOOD, so why argue with them? Oh well, when a few more airlines go bust and they lose their jobs, they'll see just how good a system this really is........
Can,t imagine what a state run airline would be like!
Oh wait that,s been done before and it worked real well.
Aeroflot anyone ?
05-21-2008, 05:09 AM
#5
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05-21-2008, 05:14 AM
#6
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It's easy to get emotional over the price of oil. I did too, so I went to Amazon and purchased 2 books. Figured it was time to educate myself big-time, as this oil thing has the potential to flatten my profession single handedly.
Here's what I learned in a nutshell.
First, there is no supply side solution to the problem of peak oil (declining output of oil going forward a few decades). When pundits and media gasbags talk about drilling more oil here in Alaska and off our coasts, they fail to know that even with all that oil, our country will STILL require lots of imported oil. We sadly need OPEC oil in the future.
Secondly, a big problem is this: world oil demand is going up exponentially the next few decades just as oil output will fall. If you think prices are high now, wait until they hit $400/barrel within a few years.
The best book was "Profit from the Peak", which really dives into oil, oil alternatives, and renewable energy. It even gives stocks in which you can consider investing in if you believe what the authors are predicting. I sure do, btw.
The airline industry has a major problem on its hands. If it can't make money with oil at $100, it's going to lose barrel-loads when oil is at over $150 later this year. What's the industry to do? Raising prices won't be the answer--sorry. Cutting our pay 20% won't help, either. Government takeover?
This is a major crisis brewing on our hands, and I'm debating switching careers gradually to somehow take advantage of this looming threat (as the book sees it as well). Solar and wind power salesman, perhaps?!
Here's what I learned in a nutshell.
First, there is no supply side solution to the problem of peak oil (declining output of oil going forward a few decades). When pundits and media gasbags talk about drilling more oil here in Alaska and off our coasts, they fail to know that even with all that oil, our country will STILL require lots of imported oil. We sadly need OPEC oil in the future.
Secondly, a big problem is this: world oil demand is going up exponentially the next few decades just as oil output will fall. If you think prices are high now, wait until they hit $400/barrel within a few years.
The best book was "Profit from the Peak", which really dives into oil, oil alternatives, and renewable energy. It even gives stocks in which you can consider investing in if you believe what the authors are predicting. I sure do, btw.
The airline industry has a major problem on its hands. If it can't make money with oil at $100, it's going to lose barrel-loads when oil is at over $150 later this year. What's the industry to do? Raising prices won't be the answer--sorry. Cutting our pay 20% won't help, either. Government takeover?
This is a major crisis brewing on our hands, and I'm debating switching careers gradually to somehow take advantage of this looming threat (as the book sees it as well). Solar and wind power salesman, perhaps?!
05-21-2008, 05:19 AM
#7
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Posts: 698
First, there is no supply side solution to the problem of peak oil (declining output of oil going forward a few decades). When pundits and media gasbags talk about drilling more oil here in Alaska and off our coasts, they fail to know that even with all that oil, our country will STILL require lots of imported oil. We sadly need OPEC oil in the future.
Second, even if it only could supply 10% of our daily needs, it still is supplying 10% of our daily needs. Not sure how that is a bad thing.
05-21-2008, 05:25 AM
#8
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Posts: 2,439
I blame both sides. On the one hand, you could cynically ask, "why shouldn't gas be $4 a gallon?" After all, people have hardly changed their behavior at all. Do you know of anyone who has significantly changed their commute, neighborhood, monster SUV, etc? Is is supply and demand, and if you don't like paying $4 a gallon for gas, then use less of it, etc.
Of course that is very simplistic. The environmentalists at their core are not about clean air and water--they are about an anti-capitalist, anti-modern agenda that would have us all living in caves--except for them of course. They would continue living in their Upper West Side townhomes, sipping nonfat decaf soy chai lattes, congratulating themselves with how utterly hip they are.
How else could you explain the following?
From http://news.bbc.co.uk/2/hi/uk_news/7261214.stm
Kenneth Richter, of Friends of the Earth, said the flight was a "gimmick", distracting from real solutions to climate change.
"If you look at the latest scientific research it clearly shows biofuels do very little to reduce emissions," he said.
"At the same time we are very concerned about the impact of the large-scale increase in biofuel production on the environment and food prices worldwide.
"What we need to do is stop this mad expansion of aviation. At the moment it is the fastest growing source of greenhouse gases in the UK, and we need to stop subsidising the industry."
Greenpeace's chief scientist, Dr Doug Parr, labelled the flight a "high-altitude greenwash" and said less air travel was the only answer.
"Instead of looking for a magic green bullet, Virgin should focus on the real solution to this problem and call for a halt to relentless airport expansion."
Just another version of the Taliban, but with a different ideological motivation.
Of course that is very simplistic. The environmentalists at their core are not about clean air and water--they are about an anti-capitalist, anti-modern agenda that would have us all living in caves--except for them of course. They would continue living in their Upper West Side townhomes, sipping nonfat decaf soy chai lattes, congratulating themselves with how utterly hip they are.
How else could you explain the following?
From http://news.bbc.co.uk/2/hi/uk_news/7261214.stm
Kenneth Richter, of Friends of the Earth, said the flight was a "gimmick", distracting from real solutions to climate change.
"If you look at the latest scientific research it clearly shows biofuels do very little to reduce emissions," he said.
"At the same time we are very concerned about the impact of the large-scale increase in biofuel production on the environment and food prices worldwide.
"What we need to do is stop this mad expansion of aviation. At the moment it is the fastest growing source of greenhouse gases in the UK, and we need to stop subsidising the industry."
Greenpeace's chief scientist, Dr Doug Parr, labelled the flight a "high-altitude greenwash" and said less air travel was the only answer.
"Instead of looking for a magic green bullet, Virgin should focus on the real solution to this problem and call for a halt to relentless airport expansion."
Just another version of the Taliban, but with a different ideological motivation.
05-21-2008, 05:31 AM
#9
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Joined APC: Jan 2008
Posts: 206
Check out this website
http://www.ultracleanfuels.com/main.htm
I know coal gasification has been around but this seems like it should be on the front burner and fast track to make happen.
Seems like a viable solution.
Watch the video
http://www.ultracleanfuels.com/main.htm
I know coal gasification has been around but this seems like it should be on the front burner and fast track to make happen.
Seems like a viable solution.
Watch the video
05-21-2008, 05:36 AM
#10
Self Employed.
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
The End
If the end is coming I have always thought it better to buy other peoples oil while it is still relatively cheap and keep ours safely in the ground. Those environmentalists could be forcing our nation to save our oil till we really need it.
Personally I hope that the prices advance slowly but continuously upwards. People need time to adjust their lives to the changes that $400 dollar a barrel oil will bring. The government could step in and regulate the price so that we have supply troubles and that would really stink. I would rather pay $10 a gallon and be able to still buy fuel when I need it than to have a government mandated price but none available to buy or forced rationing.
We all need to take the long and hard look at what our lives will be like under $10 gasoline and make changes now. As pilots we all have a lot hanging on the availability and cost of fuel. Perhaps it is time to start looking at other career fields? Railroad engineer or Greyhound bus driver perhaps?
Skyhigh
Personally I hope that the prices advance slowly but continuously upwards. People need time to adjust their lives to the changes that $400 dollar a barrel oil will bring. The government could step in and regulate the price so that we have supply troubles and that would really stink. I would rather pay $10 a gallon and be able to still buy fuel when I need it than to have a government mandated price but none available to buy or forced rationing.
We all need to take the long and hard look at what our lives will be like under $10 gasoline and make changes now. As pilots we all have a lot hanging on the availability and cost of fuel. Perhaps it is time to start looking at other career fields? Railroad engineer or Greyhound bus driver perhaps?
Skyhigh
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