Trader: Understand your sentiment but---That approach equals "Short term gain for long term pain".  I have no love for OPEC, but nobody is going to drill for anything at an oil price you describe or one 3 times greater. 

 

Ms Pallin will have to tell her constuents in Alaska, that ANWAR drilling is useless and so will the checks citizens get from the state.  They will dwindle faster than they are now because North Slope oil is running out.  Frankly we are running out in many areas of the world-I have been posting them.  Nobody will replace oil supply destruction at $10.00/barrel!

 

As I mentioned before, "drill baby drill" will become an usless comment written for the history books on this election and down the road you will pay "snap back" gas prices like you have NEVER seen before. 

 

Theres a balance in pricing to be working towards.  We are bouncing from one end to the other and we should be searching for stability in-between?  this is what allows energy companies to invest!

 

SU says watch the refiners-some may have to close down if this pricing drop continues!  That won't work very well and is germaine to the Valero's and Tesoro's of the world!  Thats not really what we want short/mid/ or longterm.

 

JMO

 

Kutz 

Trader:  Low prices stimulate Hummer sales-LOL.  Americans never take it seriously until being smacked in the face with it!  Maybe we will be different this time?

 

Personally I don't think oil going to stay low much past the election.  I guess we will find out how much demand destruction is really there over time?  there will be some great buys in energy coming! 

 

Kutz 

I don't know if it is $65.00?  Their (SA) giant field is getting old. They have been having to pump water into it to keep production up.  Then the process or getting the oil is more costly in processing.  SA production problems are the best kept secret in oil.  They don't tell us much so, their problems may sneak up on us-thats not good given their leadership role and large inventory vs most the world.

 

What SA (and the world producers) actually need is a minimum price to run their economy based on the way its set up internally in SA.  SA can stand a lower price, but many other OPEC members are screwed at these prices (ie Iran/Venezuela).

 

As Trader says-let them eat sand and dirt for now.  They did nothing to slow pricing when it was $140.00 other than SA.  No real reason to feel sorry for them here.  What is happening now (on the low side) balances out the high prices of earlier in the year.

 

We still need to find a balance in energy pricing-booms and busts do not work for ensuring future supply and investment.  We must learn that lesson from the past! 

 

Would bet Bruno "the energy man agrees and has seen this in Texas forever".  OPEC is slowly dieing anyway!  They can't pick a single dinner to eat at these meetings and they all cheat on their quotas anyway!

 

Kutz 

Macro:  there is plenty of oil in the world but "light sweet crude" thats easy to get at is disappearing!

 

Again I refer to SU plans for 2009 exploration and production just release this last week and can be obtained in their news section within Yahoo.  They are cutting expenditures by 3.5 billion (like 35%)  next year in response to the world economy and oil pricing.  They are cancelling little but stretching their investments out over a longer timeframe.  This is ominious!  We will need oilsands over the next 10 years bigtime!  I don't want to rely on the ME for oil-been there done that! 

 

If investment is done across the board by other oil companies and this pattern accelerates for any reason, it won't hurt us today or next month, but in the next 3 years it will be devestating to supply down the road and you will dream of the days when gasoline could be obtained under $3.00.  Got to think ahead for once!

 

"Peak oil baby" and the world recession is only postponing the inevitable a little!  Time will prove me right.

 

JMO

 

Kutz