[Ninong]

Originally Posted by Ninong

I think we will see $60 a barrel oil by early this summer. We may see $75 a barrel oil by sometime next summer.

What will we see first? $100 a barrel oil or $1000 an oz. gold? I think we will see both within the next five years.

Oil broke through $58/barrel this morning: http://moneycentral.msn.com/content/...es/P113941.asp

[Unome]

Originally Posted by pisomojado

...and you will never see $100 a barrel oil. There is a prototype plant currently running in the US and a few in Europe that produce oil from organic material, such as garbage, farm byproducts, etc. They can churn out at $80/barrel atm. WHEN, not IF oil gets crazy, we will be prepared

We need to go to alternative sources for fuel. I've seen reports/shows in past about the possibility of making fuel from corn. Article in paper the other day mentions Brazil where the government has forced car manufacturers to go to alternative fuels or mixed fuels.

We need to do this quickly. And once we have, we can quit depending on oil from other countries. Can we all imagine what the economies of each of these nations is going to be like once we don't require their oil? What are they going to export? Sand?

Oh, wait....the Chinese are going to be the next superpower that is going to need foreign oil. But they've got enough people to go and take what they want with no problem.

[almostdiva]

I've seen reports/shows in past about the possibility of making fuel from corn

Diesel fuel is already widely available in the midwest made from corn. It is substantially cheaper than "regular" diesel. It is slowly working its way east and west. I have been trying to find a local (reasonably...) service station for about 3 months here in the Phila metro area that carries it.

Diesel fuels have also been made from blends which include reprocessed oil used to make french fries in fast food restaurants like McDonands and Burger King. I have heard/read in multiple cases that your car smells like a french fry as this particular blend burns.

[pisomojado]

We have corn based "gas" fuel as well. Here we sell 10% ethanol(pure corn alcohol) mixed with gas, as well as 85% ethanol 15% gasoline mix.

France has a production car that runs on compressed air

not that great for real driving, but would definatly be good in pollution heavy cities at short ranges.

[wingsfan]

I think this week end prices are supposed to go up . Here are the new prices.

[vtec si]

What I do not understand is why is diesel so high!? Here in colorado I have seen it up to 3.05 a gallon! Its not much more than crud oil. There is little refinnery done to it? Right?
I paid today 2.19$ a gallon for 85 octane! (THE CHEAP STUFF!) OUCH

Martin

[Ninong]

Gas in San Francisco has now reached $3.25/gal and in Big Sur it's as high as $3.69/gal: http://sfgate.com/cgi-bin/article.cg...AGOBC5R3Q1.DTL

[Reefland]

In KY we're paying an average of $2.25. Yesterday I paid $2.29 in Bardstown and 2 towns away on my way to work it was $2.09; too bad I didn't have enough to get me there.

[Ninong]

Here in SE Louisiana gas is currently $2.199, $2.299 & $2.399.

[pisomojado]

Originally Posted by vtec si

What I do not understand is why is diesel so high!? Here in colorado I have seen it up to 3.05 a gallon! Its not much more than crud oil. There is little refinnery done to it? Right?
I paid today 2.19$ a gallon for 85 octane! (THE CHEAP STUFF!) OUCH

Martin

The reason i understand is that while crude is at max production, the demand for diesel is WAY higher because of emerging markets in China and India. So basically law of supply and demand, with a cartel thrown in for good measure.


Here in SD today we are 2.33/2.33(corn gas)/2.45 and 2.51 for diesel

[Poseidon]

I just spent $41.00 to fill up my Jeep Grand Cherokee.... ANd with me looking for a new house, I must say the cost of gas is making an impact on how far away from work I am willing to move!

[Penguin]

Here in NJ I found a place for $1.99 yesterday. Pretty much everywhere is well over $2.00 now though.

[charlie]

$2.23 here in NW Montana, and still on the rise!!

[NoSump]

Originally Posted by Ninong

The dollar is falling due to our balance of trade deficits and our obscene budget deficits.

A major factor in the drop of the dollar is the strategic decision to pressure the PRC to revalue or float the Yuan. China's export boom has been fueled largely by a dramatically undervalued currency pegged to the dollar. As a mean's of addressing the spiraling trade deficit, we have allowed out currency to drop, in part, to compel China to adjust it's currency.


The problems in Venezuela are also a factor in the rising prices of oil. Hugo Chavez seems intent on becoming the next Castro, and views his nations oil reserves as a tool to punish the U.S.

[NoSump]

France has a production car that runs on compressed air
[/quote]

Glad to see that the French are putting all that "hot air" to good use!

[Ninong]

Originally Posted by NoSump

A major factor in the drop of the dollar is the strategic decision to pressure the PRC to revalue or float the Yuan.

Eventually China will have to float the Yuan. Our government's monetary policy right now is to ignore the fall in the dollar so that it will help with the balance of trade deficit. In due time, everything has a tendency to balance out. However, as long as the administration continues running gigantic budget deficits, things will not improve anytime soon.

I was surprised that the ECB a few weeks ago adopted a new policy for the euro. They are becoming more and more like us every day. In addition to monetary stability, they now expect to use the euro to combat slumps in their economies. So the euro is becoming more and more like the dollar.

The problems in Venezuela are also a factor in the rising prices of oil. Hugo Chavez seems intent on becoming the next Castro, and views his nations oil reserves as a tool to punish the U.S.

Maybe they're still upset that the Bush administration was congratulating their political opponents on a coup d'etat that eventually did not succeed? Our track record with coups d'etat isn't all that encouraging. Maybe they're better off with their Socialist regime for the time being. Can we really say that Iran was better off with the Shah? Was Chile better off with Pinochet than Allende?

BTW, Venezuela denies that they are cutting back on oil exports to the U.S.

Besides the obvious pressure on oil prices from expanding industrialization in China and India, there is the problem with credibility of stated reserves. Shell Oil famously overstated their reserves until their restatements last year. And everyone knows that the reserves claimed by the OPEC countries are grossly inflated. In fact, you can look back to the date in 1990 when they all jumped up overnight in response to a change in the quota system that assigned quotas based on reserves. Saudi Arabia and Kuwait in particular switched to claiming the original amount of reserves for a particular oil field with no allowance for depletion. In fact, by their accounting, some of their fields have larger reserves today than they did a decade ago. Too bad the banks are beginning to disagree with them.

Saudi Arabia's main oil field, the largest in the world, is in decline and has been for several years. A larger percentage of their new production will be in high sulphur crude, not light. All of their promises about increasing production are having almost no effect on the price of oil because most people realize they won't be able to do what they promise.

The price of oil is going up. The time to get serious about alternative energy sources is now.

[Samper]

I have to agree that we need to do something. It's ridiculous.

[NoSump]

Originally Posted by Ninong

Can we really say that Iran was better off with the Shah?

That's a tough one.....Yes.

The price of oil is going up. The time to get serious about alternative energy sources is now.

Good Idea, perhaps Al Gore can use his abundent spare time, and invent a new source of energy. For a guy who invented the internet it should be a snap.



Refining capacity is also a factor in higher pump prices. In states such as NJ, which have major refineries within the state, prices are comparitively low.

In California, environmentalist concerns regarding refineries have contributed to the disproportionately high prices (along with higher state taxes).

Personally, I would like to see the U.S. devote more resources to nuclear power generation. Most parts of the world rely much more heavily on nuclear energy (including your Iranian friends - despite the fact that they are sitting on some of the largest oil reserves in the world).

[Ninong]

NoSump,

You do realize that I'm talking about comparing Pahlavi with Mohammad Mossadegh, Henry Luce's Man of the Year for 1951? I'm talking about the 1953 CIA coup (Operation Ajax) that installed the Shah, not the revolution that dethroned him.

Correct me if I'm wrong, but I doubt the CIA had anything to do with the overthrow of the Shah. I was referring to the two most famous CIA coups d'etat -- the replacement of Allende with Pinochet in Chile and the replacement of Mossadegh with Pahlavi in Iran.

[Ninong]

Originally Posted by NoSump

In California, environmentalist concerns regarding refineries have contributed to the disproportionately high prices (along with higher state taxes).

The primary cause of high prices at retail gas stations within the City and County of San Francisco has to do with the fact that more than 90% of the gas stations are owned by the major oil companies themselves. There are major refineries within 25 miles of The City. Once real estate values started skyrocketing in the 1970's and '80's, the independently owned gas stations started selling out to real estate interests. The oil companies stepped in an bought up gas stations just so they would have a presence. Gas prices in San Francisco average at least 20 - 30 cents/gallon more than they do in the rest of the state only because the prices are controlled by the oil companies. Once you get 20 - 30 miles out of The City, the price of a gallon of gas is at least 20 cents cheaper. Get 60 - 70 miles away (as long as you're heading inland) and it can be 40 cents cheaper.