Originally Posted By Mr X Watch out for peak oil, it may already be here! (I got this commentary from a site which requires signup, I'd be happy to post a link if anyone wants to sign up and read the shoutbox themselves, it's at wallstreetpit.com and the source is very knowledgeable about these things in my experience) "At Ghawar in Saudi Arabia, a field which produces over half of Saudi oil engineers are injecting 7 million barrels of seawater a day into the field dfntly a sign that the world's largest oil field is nearing a collapse of output." "Also in terms of exploration and development bringing new supplies to the market, the top 10 oil companies spent in fiscal '03 $8 billion on exploration but only found $4 billion worth of oil and gas and over the last few years the 70 largest energy companies returned well over $100 billion to their shareholders in dividends and share buybacks, rather than spend the money on exploration." I don't know about you guys, but I found this to be pretty heavy stuff.
Originally Posted By Mr X Here's more. <a href="http://home.entouch.net/dmd/ghawar.htm" target="_blank">http://home.entouch.net/dmd/gh awar.htm</a> Scariest quote? "Few know the actual state of Ghawar". Yikes, and oil at an all-time high of $103 as we speak...what happens when the world DOES find out!!??
Originally Posted By Sport Goofy Mr. X, you are falling for the oldest sales pitch in the book. Commodity prices are probably nearing a peak, so now you get the scarcity arguments to try and get people to buy more at these prices. Gasoline stockpiles in the U.S. are at a 14 year high. There is more oil to be found in the Canadian oil sands than all of Saudi Arabia. We have oil sands in Utah, too. We are quite a bit away from peak oil. The oil companies are investing in exploration because they know they don't need to. They are finding the right amount of oil to keep the amount of product flowing that will keep prices up. These sorts of articles are a lot like what you would see regarding real estate when it was at it's peak -- "Buy now because real estate prices never go down!" We have infomercials now on buying gold because it's going to continue to skyrocket! Once this sort of stuff gets reported with this fervor, it usually means you are at the top of a market or already on the way down.
Originally Posted By Kar2oonMan Does this mean I should stop running in circles, screaming and flailing my arms uselessly? I really need the exercise.
Originally Posted By johnno52 There is more oil to be found in the Canadian oil sands Yes and if Obama or Clinton have their way to change NAFTA, you can kiss that goodbye!
Originally Posted By Sport Goofy Run your circles on a treadmill that's hooked up to the power grid -- that should alleviate some of our oil consumption!
Originally Posted By Sport Goofy << I read that the shale oil thing was unrealistic. >> So unrealistic that they are producing oil from the oil sands as we speak?
Originally Posted By johnno52 I read that the shale oil thing was unrealistic. At $104 a barrel squeezing oil cans at the Walmart dumpster is feesable.
Originally Posted By Dabob2 The oil sands used to be unrealistic because it cost so much more to extract the oil from them than to get oil from conventional sources. But that was when oil was dozens of dollars less per barrel than it is now.
Originally Posted By trekkeruss Upon reading the subject, I was wondering if people were eschewing beer and wine.
Originally Posted By jonvn This place is 5 blocks from my house: <a href="http://www.smdailyjournal.com/article_preview.php?id=88262" target="_blank">http://www.smdailyjournal.com/ article_preview.php?id=88262</a>
