$4 gas, free market, tax burden question

[Arraya]

“If this is a bubble, are the speculative costs being passed proportionately down to the consumers? It obviously doesn’t feel that way if Exxon is pulling in a few straight quarters of record profits”

Oil is NOT a bubble.

-World production is flat and has been for 2+ years
-Exporting countries are using more of their oil internally thus exporting less.
-Even though there is a world economic slowdown demand is still higher than last year.
-Oil prices are very in-elastic
-The high quality oil is becoming harder to get and being replaced with lower quaility oil that is more expensive to refine.
-a 4% decline in the 70s and caused a 400% spike
-EIA put world demand down to 87 million bbl per day from 88 while production is still at 85ish.
-This trend will not stop with the exception of a serious recession/population reduction etc

All these so called analyists do a disservice by not explaining in more detail the supply/demand dynamic.

http://www.arabianbusiness.com/512436-oil-could-reach-us300-claims-expert

Just and FYI if read the article Matt Simmons was on the Cheney energy task force that is so so secretive.

[Aecetia]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

[Aecetia]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

[Aecetia]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

[Aecetia]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

[Aecetia]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

[Arraya]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

You have to understand EROEI(energy returned on energy invested). Shale is negative. They have pretty much given up on shale.

[Arraya]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

You have to understand EROEI(energy returned on energy invested). Shale is negative. They have pretty much given up on shale.

[Arraya]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

You have to understand EROEI(energy returned on energy invested). Shale is negative. They have pretty much given up on shale.

[Arraya]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

You have to understand EROEI(energy returned on energy invested). Shale is negative. They have pretty much given up on shale.

[Arraya]

Perhaps Congress should sponsor shale oil development, now that it is more affordable (at the current cost of oil). That should limit the oil hegemony.

You have to understand EROEI(energy returned on energy invested). Shale is negative. They have pretty much given up on shale.

[Aecetia]

I found this on the Econbrowser, apparently oil was on $66. a barrel then…. something for the politicos to ponder.

“September 27, 2005
Oil shale report
A number of observers have been pointing to oil shale as the solution to all our energy problems. If oil shale does turn out to be the resource of the future, then our problems are only beginning.

Instapundit sees a ‘plan to put Middle East oil producers out of business’ in this story from the Rocky Mountain News:

[W]ith crude oil above $66 a barrel at the close of trading [on Sept. 20], oil shale is a promising alternative to crude. The Green River shale deposits in Colorado, Utah and Wyoming are estimated to contain 1.5 trillion to 1.8 trillion barrels of oil, and while not all of it can be recovered, half that amount is nearly triple the proven oil reserves of Saudi Arabia.”

[Aecetia]

I found this on the Econbrowser, apparently oil was on $66. a barrel then…. something for the politicos to ponder.

“September 27, 2005
Oil shale report
A number of observers have been pointing to oil shale as the solution to all our energy problems. If oil shale does turn out to be the resource of the future, then our problems are only beginning.

Instapundit sees a ‘plan to put Middle East oil producers out of business’ in this story from the Rocky Mountain News:

[W]ith crude oil above $66 a barrel at the close of trading [on Sept. 20], oil shale is a promising alternative to crude. The Green River shale deposits in Colorado, Utah and Wyoming are estimated to contain 1.5 trillion to 1.8 trillion barrels of oil, and while not all of it can be recovered, half that amount is nearly triple the proven oil reserves of Saudi Arabia.”

[Aecetia]

I found this on the Econbrowser, apparently oil was on $66. a barrel then…. something for the politicos to ponder.

“September 27, 2005
Oil shale report
A number of observers have been pointing to oil shale as the solution to all our energy problems. If oil shale does turn out to be the resource of the future, then our problems are only beginning.

Instapundit sees a ‘plan to put Middle East oil producers out of business’ in this story from the Rocky Mountain News:

[W]ith crude oil above $66 a barrel at the close of trading [on Sept. 20], oil shale is a promising alternative to crude. The Green River shale deposits in Colorado, Utah and Wyoming are estimated to contain 1.5 trillion to 1.8 trillion barrels of oil, and while not all of it can be recovered, half that amount is nearly triple the proven oil reserves of Saudi Arabia.”

[Aecetia]

I found this on the Econbrowser, apparently oil was on $66. a barrel then…. something for the politicos to ponder.

“September 27, 2005
Oil shale report
A number of observers have been pointing to oil shale as the solution to all our energy problems. If oil shale does turn out to be the resource of the future, then our problems are only beginning.

Instapundit sees a ‘plan to put Middle East oil producers out of business’ in this story from the Rocky Mountain News:

[W]ith crude oil above $66 a barrel at the close of trading [on Sept. 20], oil shale is a promising alternative to crude. The Green River shale deposits in Colorado, Utah and Wyoming are estimated to contain 1.5 trillion to 1.8 trillion barrels of oil, and while not all of it can be recovered, half that amount is nearly triple the proven oil reserves of Saudi Arabia.”

[Author]

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