Re: OPEC and gas price

Posted by Errin OH on April 01, 2004 at 09:09:36 from (168.73.245.53):

In Reply to: OPEC and gas price posted by Will on April 01, 2004 at 05:28:39:

Well I been out of the oil field for about ten years now, but can shed some light on the dilemma. Producing oil here isn't the problem. There are many co's that would love to see a boom here again. For this to happen 2 things need to happen. 1st oil needs to be around the $45 mark. This may sound high compared to the 30 stuff but with all the regs, restrictions, OSHA, and such the price of labor to drill here is a ton more than there. So what happens is the OPEC people, who don't have these issues & pay peasant salaries, under cut US, as well as others, production with simple supply / demand strong arming. The run it up to a point where US producers can begin to produce, and then flood the market, drive down the price to the point where the US guys can't compete. They make so much off a barrel it doesn't matter if it's $30 or 50. They are still getting rich. After a few cycles of this the US produces simply say "screw it" and wait. I think we have actually drilled and caped more holes now than we are pumping. The 2nd and most important thing that needs to happen is the market/US needs to tell them to #v(&OFF. Stop buyin period and let France deal with them. Not that anyone is watchin but I think this has been happening for some time now. Just to stinkin slow for my taste. Can't sight exact numbers but where down to something like 30% from them. Which leaves 70% from elsewhere. The elsewhere is the problem at this point. Russia as a supplier has just had some wild things going on and the dependency thing is just crazy. Seems old Puke-tan decided to knock off the top two oil co's leaders. Not real sure we'll be dealin with him, the co's or what. Venaswalla the other big provider has a nut (fido fan) in charge now that seems h#ll bent on knocking of democracy in his country in favor of bein a commie. One day he's willin to deal the next he's not.

So what it comes down to is - Buyers have to have stable "supplies". 2 out of 3 are not. So the infulance of the third is a major deal on futures.

What we should do, short of invading Russia and South America, is have a 45-50$ a barrel price with 90% from the good old US of A. Then drop this hybrid/electric crap that is only going to force us to drive golf cart sized vech's at 35 miles an hour, and invest into Bio-fuels (the only truely renewable alternate), and then work the next 10-15 years on leavin oil behind.

Follow Ups:

• Re: Re: OPEC and gas price big fred 12:00:07 04/01/04 (1)
  • Re: Re: Re: OPEC and gas price cb 06:34:48 04/02/04 (0)

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