Damn Oil Prices

[Eric5273]

They're at it again.

Venezuela may be forced to apply "diplomatic restrictions" on oil supplies to the United States of America

OPEC to cut oil output by nearly 4 percent in pre-emptive move

I think we're soon going to be paying $3 per gallon.

 

[Jimbo]

All the more reason to start ANWR drilling ASAP.

 

[Eric5273]

Either that, or stop pissing off the Venezuelan government. I don't blame them for stoping oil shipments if they do. We would do the same thing if some other country was giving safe haven to terrorists trying to attack the United States. In fact, we would probably invade that country and replace the government.

And maybe while they're at it, stop pissing off the folks in the Middle East. This is all a result of a bad foreign policy. They are going to run our economy into the ground.

 

[Black Knight]

that's weird...the gas prices dropped a few nickels this past weekend. i was surprised to get 91 premium at $2.06/gallon this morning.....

 

[ncdogdoc]

that's weird...the gas prices dropped a few nickels this past weekend. i was surprised to get 91 premium at $2.06/gallon this morning.....

Zowie I paid $1.43 for 93 premium this weekend

 

[JOPRIMO]

Gas prices dropped as Summer is ending... BOOOOO!

http://www.msnbc.com/news/973136.asp

 

[Black Knight]

yeah, the shell gas owner told me that summers tend to hike up the prices and winters normally drop them.

i always thought the more we consume, the cheaper it will be. i guess oil is not just any product.

 

[Sig]

Either that, or stop pissing off the Venezuelan government. I don't blame them for stoping oil shipments if they do. We would do the same thing if some other country was giving safe haven to terrorists trying to attack the United States. In fact, we would probably invade that country and replace the government.

And maybe while they're at it, stop pissing off the folks in the Middle East. This is all a result of a bad foreign policy. They are going to run our economy into the ground.

You are obviously not an economist.

On the other note.
As far as the Middle East is concerned, most of these nations quietly accept the fact that oil will be obsolete in 50 years. Oil's generalized use will be greatly diminished in just 25. Thus OPEC has become a legal monopolistic vehicle to allow the member nations to hold oil prices at artificially high prices in the interest of making as much money as they can while they can.

The real problem comes after that 50th year. Some of the OPEC nations, who's ruling dictators continue to choose a path of non-progress for their nations, will be in serious trouble. Many of these nations will have a GDP of near zero if the market for oil vanishes. This is one of the primary downfalls of dictatorships that make non-progress a way of life for their people in the interest of maintaining their own personal wealth.

 

[Eric5273]

You are correct about the Middle East OPEC nations. But we get more oil from Venezuela than from there, and if you read the article I posted, the Venezuelan government isn't threatening to cut back production because of economics, but they are basically threatening sanctions since our government is providing a safe haven for a terrorist who tried to overthrow their government. It's like a double standard -- our government expects other nations to turn over terrorists who attack us, but then we do not do the same in return.

Also, Venezuela is different than those Middle Eastern dictatorships in that it is a socialist democracy and the oil industry is nationalized. There are no elite wealthy oil sheiks trying to hold onto their vast wealth at the expensive of the poor populations of their country. In Venezuela, profits from oil sales goes towards social programs and education -- it is for the good of everyone.

 

[Yellow Rose]

As far as the Middle East is concerned, most of these nations quietly accept the fact that oil will be obsolete in 50 years.

Totally absurd.....the Earth's oil reserves are proven to be available for 2-300 years. Please read a book titled "The Color of Oil" by economist professor, Michael Economides. Now if you meant that the main end use of oil (gasoline and diesel for vehicular transportation) will deminish, I strongly suspect The Big Three in Detroit will debate with you on that.

Oil's generalized use will be greatly diminished in just 25.

What is your source of this comment?

 

[Yellow Rose]

You are correct about the Middle East OPEC nations. But we get more oil from Venezuela than from there, and if you read the article I posted, the Venezuelan government isn't threatening to cut back production because of economics, but they are basically threatening sanctions since our government is providing a safe haven for a terrorist who tried to overthrow their government.

Propaganda. That article you referenced used the term "terrorist" against the previous president as undermining his country's economy. So let's be careful of word choice, so that the issue is not grossed out of proportion.

Also, Venezuela is different than those Middle Eastern dictatorships in that it is a socialist democracy and the oil industry is nationalized. There are no elite wealthy oil sheiks trying to hold onto their vast wealth at the expensive of the poor populations of their country. In Venezuela, profits from oil sales goes towards social programs and education -- it is for the good of everyone.

The last sentence is so incorrect. I almost pointed out your error yesterday on a different post in this thread, but this post is plain wrong that it cannot go uncorrected. In that country there are the poor and the rich - there is no middle class in Venezuela. And because of corruption, there is very little being done towards social programs and education. When my partner and I travel to Caracas, we "take care" of our cab driver, waiter, maid, etc. These are the working citizens of Venezuela, and they scoff at the notion that oil profits are being invested into the people resource. The rich are corrupt gov't officials that run PDVSA, the nationalized oil company, and other gov't officials from the Chavez clan. Often, the two do not get along and this was the focus of their oil strike last December.

How do I know about Venezuela and their oil practice? I have recently finished a feasibility study to develop the La Vela gas field near Coro, Falcon State. (While visiting the field, we stayed in nearby Cumorebo.....the proverty is so saddening.) The findings were presented to PDVSA and other gov't bodies to obtain a gas permit to produce the field. Side note for those that think the US and Venezuela differ on oil practices - this study was funded by a grant from the United States Trade Development Agency, acting through the US Embassy in Caracas.

Eric - you seem like a pretty intelligent guy that can cite newspaper articles, white paper reports, etc. This is good because knowledge is power. However, incorrect knowledge is useless. I've been in the oil business for twenty-two years, and I can read between the lines of a biased newspaper article with ease. Especially when the article refers to a foreign country that I do business with.

 

[Sig]

As far as the Middle East is concerned, most of these nations quietly accept the fact that oil will be obsolete in 50 years.

Totally absurd.....the Earth's oil reserves are proven to be available for 2-300 years. Please read a book titled "The Color of Oil" by economist professor, Michael Economides. Now if you meant that the main end use of oil (gasoline and diesel for vehicular transportation) will deminish, I strongly suspect The Big Three in Detroit will debate with you on that.

Oil's generalized use will be greatly diminished in just 25.

What is your source of this comment?

If oil falls from grace, it will have little to do with the Earth's reserves. I do not dispute that for a minute. My speculation has to do with the advent of legitimate alternative fuel technology coupled with geopolitical, and politically correct forces.

These statements are not meant to be factual recitations nor politically charged. They are merely my own predicitions. I do believe that Alternative Fuel companies and Biotech companies will be competing for the Most Shiek Award in the coming years/decades, thus attracting big dollars (Biotech has already done this). These dollars will eventually turn into results.

 

[Eric5273]

Propaganda. That article you referenced used the term "terrorist" against the previous president as undermining his country's economy.

No, he was involved in the coup last year that attempted to overthrow the democratically elected government. This coup was obviously supported by those in Washington, and now they are trying to protect those involved.

The American press even went along with the propoganda given by those leading the coup -- all the major American newspapers reported that Chavez had resigned. That was their cover story. They would report that Chavez had resigned and probably later that he committed suicide, and the new leaders would take over. Just like it happened in Chile 30 years ago.

The coup ended up failing when the military refused to cooperate with those leading the coup and they rescued Chavez who was being held captive. Then of course, with Chavez back in power, all the newspapers retracted their stories saying thay had bad information. Chavez had never resigned.

In that country there are the poor and the rich - there is no middle class in Venezuela.

Yes......this is how things have always been in Venezuela. Much like the rest of Latin America. This is how Capitalism works in poor countries. The only way this will ever change is forced wealth redistribution.

The rich are corrupt gov't officials that run PDVSA, the nationalized oil company, and other gov't officials from the Chavez clan.

Just the opposite.....the wealthly elite are the ones who are against Chavez. They are the ones who control most of the large corporations and large businesses in Venezuela and they hate that Chavez is a socialist in favor or wealth redistribution -- they do not wish to share their wealth with the poor.

9 of the 10 television stations in Venezuela are owned by this group. They also own & control all the newspapers in Venezuela. With this kind of influence over the people, it's rather remarkable that a small majority of them still seem to support Chavez, although with all the turmoil of the constant strikes and poor economy, that number is diminishing fast.

In his first Presidential election victory, Chavez won by a huge landslide. In his second, he won by a fair majority, but a much smaller than in the first. It will be interesting to see what happens in the next election. I wouldn't be surprised if he is voted out.

 

[Eric5273]

New articles in today's news:

CNN: World oil and gas 'running out'

Oil and gas running out much faster than expected, says study