If true, this should changes the dynamics of the markets considerably.


July 23 (Bloomberg) -- The $100-a-barrel oil that Goldman Sachs Group Inc. said would prevail by 2009 may be only a few months away.

Jeffrey Currie, a London-based commodity analyst at the world's biggest securities firm, says $95 crude is likely this year unless OPEC unexpectedly increases production, and declining inventories are raising the chances for $100 oil. Jeff Rubin at CIBC World Markets predicts $100 a barrel as soon as next year.


Source

That might be the wake up call we need to get serious about conservation and a shift towards renewable energy.

A lot of people don't know, but oil is not as scarce as we think it is...

There are oil reserves all around the world that are known and well-recognized for their ability to maybe power the whole world for centuries(at the rate we use oil now, which I hope reduces as time goes on).

The problem is, they are so deep in the ground, and mixed with so many rocks and dirt and other junk that the oil companies don't want to spend the money digging it out and cleaning it up. They'd rather solely use the ones that are easy to obtain so that they don't start spending more money. If they thought about the future, they would work on it. But most people running the companies aren't exactly the most considerate of people. So their concentration is on how much money they can make before they die.

That is why oil is becoming so "scarce." They pretend it is because they don't want to spend money. Obviously, they won't go broke, but their salaries will go down noticibly(even though they will still be well above everyone else's income sufficiently). But that lump of money keeps them from trying anything.

There seems to be lots of oil, but until we stop importing so much of it, we are at their mercy, and too often we have to interfere with foreign government to ensure we have a constant supply.

Until that changes, we will constantly be in wars like Iraq, or involved in evey conflict that involves our oils supply.

Tumbleweed wrote:There seems to be lots of oil, but until we stop importing so much of it, we are at their mercy, and too often we have to interfere with foreign government to ensure we have a constant supply.

Until that changes, we will constantly be in wars like Iraq, or involved in evey conflict that involves our oils supply.

Canada actual has an enormous reserve that no one is trying to get to because it would costs so much to obtain.

trivium666fan wrote:Canada actual has an enormous reserve that no one is trying to get to because it would costs so much to obtain.

I know it's certainly not because we're afraid of their overwhelming military superiority.

Wait until we're running on empty, and then we'll see a change towards exploring new methods of extraction. Of course by then oil will be too expensive for anyone besides the military to buy, and that will be a truly scary condition. Unless we invest in alternative technologies ASAP. If we didn't need oil, no one would be lacking.

Coyote wrote:

trivium666fan wrote:Canada actual has an enormous reserve that no one is trying to get to because it would costs so much to obtain.

I know it's certainly not because we're afraid of their overwhelming military superiority.

Wait until we're running on empty, and then we'll see a change towards exploring new methods of extraction. Of course by then oil will be too expensive for anyone besides the military to buy, and that will be a truly scary condition. Unless we invest in alternative technologies ASAP. If we didn't need oil, no one would be lacking.

It shouldn't matter what situation we are in with oil for us to invest in alternative fuels and technologies. Oil companies just keep everyting under wraps so that no one investigates it and the don't lose money.

trivium666fan wrote:It shouldn't matter what situation we are in with oil for us to invest in alternative fuels and technologies. Oil companies just keep everyting under wraps so that no one investigates it and the don't lose money.

Even some conservatives are starting to agree with that.

The low supply is not from the oil producing countries, it is because of refineries. Oil companies use this as a supply control. Oil countries are producing at record rates, so to blame them is a short sighted blame. I do not know if it will go that high, Saudi is a big bud that helps keep prices down and as long as we massage their egos they will help.

Canda's oil in in "oil sands", from what I have read, not much right now, it is rather a complex and sometimes expensive technique toi separate the oil from the sands.

European markets are sucking, Asian markets are down and the US markets are sinking because of mortgage pracitces and sliding indices. Amd now for the bad news.


Oil prices have climbed to a record high of $78.71 a barrel amid worries about whether oil supplies can meet global demand.

The price of a barrel of US light, sweet crude passed the previous high of $78.40 a barrel, reached in July 2006.

Prices have risen steadily in the past few weeks following disruption to output in Nigeria and the North Sea and set a new closing high on Tuesday.

The latest rise was triggered by data showing a fall in US crude stockpiles.


LINK


What will the pric e go to time, they went to well above $3 last time, where will it go this time?

An explanation it you would like one.


(Reuters) - Crude oil hit a record high of $78.77 a barrel on Wednesday after a larger-than-expected drop in crude inventories in the United States, the world's top fuel consumer.

Real and threatened disruptions to crude oil supplies, constraints at refineries in consuming countries, resilient global fuel demand and a flow of investor money into oil and other commodities have pushed prices higher.


LINK

If another hurricane were to hit the gulf coast it could really send prices through the roof.

It would not be because of crude supplies but the lack of refinberies and that would drive gas to well over $4. If a large hurricane hit between La. and TX. then a bunch of refineries would go off line and hence supply of gas would be low and the price would go beserk.

It is getting closer and closer.


SINGAPORE (AP) -- Oil prices dropped Thursday as traders took profit after U.S. crude stocks fell and drove oil futures in the previous session above US$80 a barrel for the first time ever.

Light, sweet crude for October delivery lost 26 cents to US$79.65 a barrel in Asian electronic trading on the New York Mercantile Exchange by midmorning in Singapore.

The contract climbed as high as US$80.18 a barrel Wednesday before settling at a record close of US$79.91 a barrel, up US$1.68.



LINK

It's not bad enough that oil went up but the dollar is down so it's a double whammy.