Whos to blame for $4 gasoline....
05-20-2008, 05:54 PM
#42
Gets Weekends Off
Joined APC: Mar 2008
Position: dogstyle
Posts: 375
Yes but unlike tech which had massive overvaluation without ANY cash value, oil has a great deal of capital behind it. Housing is not crashing but correcting. Tech crashed. Yes it may seem with the subprime debacle, inflated asking prices and LOTS of foreclosures that it is but this isn't a crash.
Oil will retrace, absolutely, but its going to be back down to the mid $90's when the correction happens. If you can read a commodity chart and recognize trend formations, shorting oil is a windfall as much as its been a boom on the way up for savy investors. But overall it won't resemble tech, much more like housing.
Oil will retrace, absolutely, but its going to be back down to the mid $90's when the correction happens. If you can read a commodity chart and recognize trend formations, shorting oil is a windfall as much as its been a boom on the way up for savy investors. But overall it won't resemble tech, much more like housing.
05-20-2008, 06:12 PM
#43
Gets Weekends Off
Joined APC: Sep 2006
Posts: 112
Who is the blame for 4/gal
The planet earth, bad planet for running out of oil and making the normal laws of supply and demand apply.10 dollars is just around the corner, what will we do then. I do not think the wastefull ways of all these airplanes in the air can keep going. What do you folks think. Ockham
05-20-2008, 06:17 PM
#44
Gets Weekends Off
Joined APC: Sep 2006
Posts: 112
Now here is someone who gets it
Let me address a few key misconceptions about the price of oil.
It is all because of the weak dollar.
True, the price of oil rose because the value of the dollar has gone down. However, the value of the dollar is the same today (with oil at $130/barrel) as it was in the beginning on March 2008 (with oil at $103/barrel). So why has the price of oil increased $27/barrel (about 27% in 3 months) when the value of the dollar has been stable?
Drilling in ANWR is the solution
ANWR has oil predicted oil reserves of approximately 4 billion barrels. To put that number in perspective, the US consumes 20 million barrels of oil per day. The world consumes 83 million barrels of oil per day. If we drilled in ANWR, they estimate we could produce 1 million barrels per day. That is only 5% of what we consume every day. Barely 1% of the world oil supply. Oh yeah, and it would be all gone in 11 years. Do you really think that will solve our problems? Today the Saudi's announced they were increasing production by 300,000 barrels to day. Despite this news, the price of oil went up $2.30/barrel to an all-time record high. 1 million barrels a day is nothing on the global scale. It is just a short term solution to a long term problem. It is like putting a band-aid on a gushing wound, and quite frankly, I don't think that small amount of production will make a difference. Plus, you would have to be an idiot to drill in some of the most sacred environment on the face of the planet. Drilling in ANWR is not the solution to our energy crisis.
The law of supply and demand will cause the oil bubble to burst
That entire statement is so wrong. The rising price of oil defies the law of supply and demand. In May 2003, the price of oil was $30/barrel (hard to believe, huh?). In May 2008, the price of oil is currently $130/barrel. The price has increased 433% over 5 years. Demand in the world has slightly increased from 78 million barrels to day in 2003 to 83 million barrels per day in 2008. Barely a 6% increase.
Oil prices can continue to rise because there is demand for oil. The price has increased 433% in the past 5 years, yet we are consuming more oil than 5 years ago. Is oil worth $130/barrel? Of course it is! If you bought gasoline recently, you are certainly willing to pay $130/barrel. Anything is worth what you are willing to pay for it. If you continue to pay for oil when the price hits $150, $180, $200/barrel, you must believe it is worth the price.
Up until very recently, OPEC had a strategy of not letting oil prices get out of control because they thought if they drove the price too high, the world economy would crumble, and someone would develop an alternative to oil, leaving Saudi Arabia as a piece of desert atop 200 billion barrels of worthless black crap. Oil kept going up and no one has done anything about it (including the US, the worlds richest, most powerful, most technologically advanced country who is the world's largest oil consumer). So recently it seems like they have changed their strategy, and are just going to let oil prices rise, and see how much oil is really worth. My opinion is oil is worth about $200/barrel. That is gas at $6-$7 a gallon. Above that, you will start to see a significant reduction in oil consumption.
In short, the people most responsible for $4/gallon gas are ourselves, because we continue to buy gasoline and not do anything about the rising price of oil. The price of oil is only going to go up and up and up. The only thing we can do to stop it is to stop consuming a big portion of it (by developing an alternative energy) and leaving Saudi Arabia with 200 billion barrels of worthless black crap. Until we switch to an alternative energy, there is really not much we can do. Crude oil was a one time gift to mankind. It was nice while it lasted...now lets get over it.
It is all because of the weak dollar.
True, the price of oil rose because the value of the dollar has gone down. However, the value of the dollar is the same today (with oil at $130/barrel) as it was in the beginning on March 2008 (with oil at $103/barrel). So why has the price of oil increased $27/barrel (about 27% in 3 months) when the value of the dollar has been stable?
Drilling in ANWR is the solution
ANWR has oil predicted oil reserves of approximately 4 billion barrels. To put that number in perspective, the US consumes 20 million barrels of oil per day. The world consumes 83 million barrels of oil per day. If we drilled in ANWR, they estimate we could produce 1 million barrels per day. That is only 5% of what we consume every day. Barely 1% of the world oil supply. Oh yeah, and it would be all gone in 11 years. Do you really think that will solve our problems? Today the Saudi's announced they were increasing production by 300,000 barrels to day. Despite this news, the price of oil went up $2.30/barrel to an all-time record high. 1 million barrels a day is nothing on the global scale. It is just a short term solution to a long term problem. It is like putting a band-aid on a gushing wound, and quite frankly, I don't think that small amount of production will make a difference. Plus, you would have to be an idiot to drill in some of the most sacred environment on the face of the planet. Drilling in ANWR is not the solution to our energy crisis.
The law of supply and demand will cause the oil bubble to burst
That entire statement is so wrong. The rising price of oil defies the law of supply and demand. In May 2003, the price of oil was $30/barrel (hard to believe, huh?). In May 2008, the price of oil is currently $130/barrel. The price has increased 433% over 5 years. Demand in the world has slightly increased from 78 million barrels to day in 2003 to 83 million barrels per day in 2008. Barely a 6% increase.
Oil prices can continue to rise because there is demand for oil. The price has increased 433% in the past 5 years, yet we are consuming more oil than 5 years ago. Is oil worth $130/barrel? Of course it is! If you bought gasoline recently, you are certainly willing to pay $130/barrel. Anything is worth what you are willing to pay for it. If you continue to pay for oil when the price hits $150, $180, $200/barrel, you must believe it is worth the price.
Up until very recently, OPEC had a strategy of not letting oil prices get out of control because they thought if they drove the price too high, the world economy would crumble, and someone would develop an alternative to oil, leaving Saudi Arabia as a piece of desert atop 200 billion barrels of worthless black crap. Oil kept going up and no one has done anything about it (including the US, the worlds richest, most powerful, most technologically advanced country who is the world's largest oil consumer). So recently it seems like they have changed their strategy, and are just going to let oil prices rise, and see how much oil is really worth. My opinion is oil is worth about $200/barrel. That is gas at $6-$7 a gallon. Above that, you will start to see a significant reduction in oil consumption.
In short, the people most responsible for $4/gallon gas are ourselves, because we continue to buy gasoline and not do anything about the rising price of oil. The price of oil is only going to go up and up and up. The only thing we can do to stop it is to stop consuming a big portion of it (by developing an alternative energy) and leaving Saudi Arabia with 200 billion barrels of worthless black crap. Until we switch to an alternative energy, there is really not much we can do. Crude oil was a one time gift to mankind. It was nice while it lasted...now lets get over it.
Thank you for seeing the what is happening
05-20-2008, 06:40 PM
#45
Gets Weekends Off
Joined APC: Dec 2007
Position: Hot tub for now
Posts: 1,203
That is a pretty bold prediction. If you are so sure put your money where you mouth is - I mean if it will never go down put all your money into oil commodities and you won't even need a job as a pilot.
Hydrogen cars are far far away. The infrastructure and the energy required to make hydrogen cars is in no way feasible in the near future (at least 10 years). Barring any exceptional breakthrough a hydrogen society is still science fiction. Take the time to watch this video all the way through please. While you will see hydrogen cars are possible, the technology still has a long way to go before a hydrogen society becomes a reality.
http://www.pbs.org/wgbh/nova/sciencenow/3210/01.html
Do some research on EV and you will see that not only are electric cars an option right now - they were years ago. Yes, the technology exists right now for you and me to drive around 100 miles on one charge at speeds fast enough to drive on freeways and not use one drop of gas/oil (assuming your electricity comes from a non oil burning electric plant). I'd put my hopes into an EV way before a hydrogen based car. Go to your local library and rent the documentary 'Who Killed the Electric Car?'.
Hydrogen cars are far far away. The infrastructure and the energy required to make hydrogen cars is in no way feasible in the near future (at least 10 years). Barring any exceptional breakthrough a hydrogen society is still science fiction. Take the time to watch this video all the way through please. While you will see hydrogen cars are possible, the technology still has a long way to go before a hydrogen society becomes a reality.
http://www.pbs.org/wgbh/nova/sciencenow/3210/01.html
Do some research on EV and you will see that not only are electric cars an option right now - they were years ago. Yes, the technology exists right now for you and me to drive around 100 miles on one charge at speeds fast enough to drive on freeways and not use one drop of gas/oil (assuming your electricity comes from a non oil burning electric plant). I'd put my hopes into an EV way before a hydrogen based car. Go to your local library and rent the documentary 'Who Killed the Electric Car?'.
Don't believe that hydrogen is not going to be available soon.
There are already conversion kits available that will convert water into hydrogen in addition to burning gas in your car HHO for under $200. You can double your gas mileage Today. I am in the process of installing a kit on an old VW to see how many miles/gallon i can increase it too. HHO is three times as powerfull as straight gasoline. Youtube it......
05-20-2008, 07:09 PM
#46
Gets Weekends Off
Joined APC: Nov 2005
Posts: 1,425
There are already conversion kits available that will convert water into hydrogen in addition to burning gas in your car HHO for under $200. You can double your gas mileage Today. I am in the process of installing a kit on an old VW to see how many miles/gallon i can increase it too. HHO is three times as powerfull as straight gasoline. Youtube it......
05-21-2008, 06:08 AM
#49
Kept down by the man
Joined APC: Dec 2007
Position: 767 CA
Posts: 657
Hydrogen cars are already on the horizon. Ford has 33 test vehicles out on the road which are commercial versions of these add on kits for your cars. The technology uses electrolysis to take hydrogen out of water and add it to your current fuel. I have actually seen one on the road and from what ive read, they work very well.
Also the first ALL electric commercially available car has been released by a company called Tesla. Its not quite affordable for those of us not making millions, but its still a big step towards weening ourselves off of gasoline... Jay Leno bought the first one. Take a look at it here... http://www.jaylenosgarage.com/video/...tml?vid=229378
I wouldnt mind having one
Also the first ALL electric commercially available car has been released by a company called Tesla. Its not quite affordable for those of us not making millions, but its still a big step towards weening ourselves off of gasoline... Jay Leno bought the first one. Take a look at it here... http://www.jaylenosgarage.com/video/...tml?vid=229378
I wouldnt mind having one
05-21-2008, 07:25 AM
#50
Gets Weekends Off
Joined APC: Dec 2007
Position: Hot tub for now
Posts: 1,203
Yes i have been following Tesla for some time. This is the new "Gold Rush" era. Whoever can come up with an alternative fuel, enviromentally friendly car will be rich....Hydrogen is just about the most enviromentally friendly that there is. Of course electricity is not as clean as most will think. Half of all electricity in this country comes from Coal. 70% of coals energy is wasted just trying to harness the energy in it.
The sun is our best bet for electricity. Or wind.
Buy stock in Tesla. You won't be sorry. It will be the next Ford or GM. The technology won't go away. The guys that started Google own the company. They have more money then god so Big Oil can't buy their product and bury it.
The sun is our best bet for electricity. Or wind.
Buy stock in Tesla. You won't be sorry. It will be the next Ford or GM. The technology won't go away. The guys that started Google own the company. They have more money then god so Big Oil can't buy their product and bury it.
Thread
Thread Starter
Forum
Replies
Last Post
