Something EVERYONE should be aware of

[Jerry]

erased off of board

[RogerL]

Most of that is valid. There are some potential holes in the theory. The Saudi oil minister just a few days ago said that Saudi Arabia was capable of bringing 1.3 million barrels/day of production capacity online immediately but would not do so for one reason: they couldn't find anyone to sell it to.

The main reason for oil's ridiculous price right now is speculation on higher prices. As it continues to rise, speculators continue to flow into the market continuing to push prices higher and higher.

There are few short term solutions that could help. President Bush can immediately order a halt to filling the SPR, which at current rates is eating up 100,000 barrels/day. That could drive out a good number of speculators as they will suddenly fear a release from SPR could drive down prices. I've seen lots of analysts say that the natural oil supply/demand price would likely be closer to $35 than $49. Still high, but not stratospheric. The rest is probably being boosted by speculation only.

George HW Bush did something similar when oil started spiking during his administration. Just releasing a small amount from SPR collapsed oil prices from near $40/barrel to $10 as speculators were driven out of the market.

A second short term possibility is to modify the regulations on boutique fuels. Environmental regulations make it necessary to produce thirteen different blends of gasoline for different regions of the country. If only a single version was refined, that could alleviate any potential shortages popping up in various regions of the country. That wouldn't alleviate oil prices but could help in gas prices. We'd get fewer price distortions on gasoline where the west pays more than 30% for gasoline than the rest of the country.

Long term, we need an energy policy. Unfortunately, it's been blocked for over three years in the Senate. Congress refuses to allow any more output within the US, insisting on only conservation and alternative fuels, a very, very long-term solution. And they refuse to allow conditions that make it possible to build additional refineries. No refinery has been built in over 20 years due to regulations. It's not just oil that's the problem. Refining capability is another.

Fortunately, some people are doing something about it. Governor Murkowski of Alaska is permitting oil drilling in areas around the periphery of ANWAR, which in a few years time could signficantly boost our daily oil output. Now if we could only get the Senate to act.

Iraq is also trying to up production and refining capability, as we've seen on some links posted on this message board. But again, that's still a few years out.

[Iraqi Al Yahud]

All this talk about Saudi "extra" capacity to produce is just that, talk. The Saudis are maxed out. Iraq is essentially off line. While the supply end is worrysome, the demand from China and India is growing daily. China and India were non players during the 1970s. We will be paying $3.00 per gallon within 1 month.

[CramptonMotorsports]

All this talk about Saudi "extra" capacity to produce is just that, talk. The Saudis are maxed out. Iraq is essentially off line. While the supply end is worrysome, the demand from China and India is growing daily. China and India were non players during the 1970s. We will be paying $3.00 per gallon within 1 month.


who's "We"?

[FAST1]

The Russian gov. kicked off the drama with oil by threatening their largest producer to repay debts now. The situation in Venezuela also had many pinheads on Wallstreet panicking.

The Saudis know that the high prices are bad for the economy for the long term, they will do whatever needs to be done to get the prices back to reasonable levels.

What I am trying to say is- It will all work out, you'll see.

[Iraqi Al Yahud]

The Saudis cannot and will not pump more than what they have. Can the Saudis pump 13 million barrels per day? Nope. China and India both are demanding more oil than the "experts" thought. Iraq could ease the situation if it were allowed to open up fully. The Iraqi western desert is unexplored and could hold another tresure trove of oil according to Total.
"We" meaning you, I and the rest of the USA will be forced to pay more at the pump within 1 month.

[FAST1]

The Saudis are not the only oil producer. I tell you what, buy an electric car. Maybe the sky is falling!

[Iraqi Al Yahud]

Sky may not be falling, electric car? not for me. I am just waiting for "mission accomplished" in Iraq. Bush promised us cheap oil. We should all be paying $1.10 per gallon after this mess. Maybe Uncle Dick can work some magic? The Russians are too busy trying to jam their own producers. I totally support Manifest Destiny. What about you?

[Collegeinvester1000]

I say Drill ANWAR. Whe someone plugs their electric car up, where does the energy come from? coal burning plants? hmmm how enviromental

(yes some power does come from dams/nuclear power)

[Iraqi Al Yahud]

However, Alaskian crude is difficult to drill? Anyone know? then what about transporting oil to market, infrastructure? The costs associated with Alaskian oil I believe is not ecconomically feasiable. I have no problems drilling due to environmental concerns. I want to keep my Jeeps, the hell with electric.

[Collegeinvester1000]

I think it's actually in the oil companies best interests (economically and politically) to drill in the most enviromentally friendly way. They can build over ice (I saw it on tv it HAS to be true)

[FAST1]

That was a statement that Gen. Tommy Franks wanted Bush to declare for the troops that busted their tails over there. I don't remember Bush saying anything about gas for 1.10 a gallon either. If he did say that, I would think it to be very irresponsible.

Maybe drilling in Alaska would produce jobs.....Dems can't have that these days. The energy bill proposal might have curbed some speculation that is driving the oil prices-but not much. Anwar could help some but mpg regulations could help also.

If we cut our usage(if we were able to) the oil producers would panic. They are happy when we drive suv's.
Keep your Jeep's! They are much more fun than electric cars!
Uncle Dick could have his buddies fix up Alaska for sure.
In the late 70's we explored the possibility of extracting fuel from coal, it works well, only problem is it was not cost effective at the time due to the price of crude. It dropped so they scrubbed the plant. They could pull it off the shelf if prices get too high.
I've seen the same media as you, if I hear anything good-I'll mention it. I still think that things can get worked out. I may be able to buy a Dodge 4x4 Hemi one day-I hope!

[FAST1]

Looks like I need to inspect that engine! I knew it was not the 426 ci but thought the hemispherical heads were of same basic design. I would really like to see a Hemi Jeep.

You are right about the gas lines.....I may just keep driving my Iraqi honda. We may all have something in common with Lance Armstrong one day.......

[CramptonMotorsports]

Sky may not be falling, electric car? not for me. I am just waiting for "mission accomplished" in Iraq. Bush promised us cheap oil. We should all be paying $1.10 per gallon after this mess. Maybe Uncle Dick can work some magic? The Russians are too busy trying to jam their own producers. I totally support Manifest Destiny. What about you?

your posts crack me up, but I'm afraid you're serious in all of them.

When did Bush promise cheap oil? Before the war I made the statement that gas would never drop below $2.00/gallon again, and I know a few station owners and they agreed. It has dipped below $2 a few times, but not for long, and by the time the Saudi reserves are known, if ever, and Iraq's production and economy is online and stable the inflation will be at the point that even if gas was $2/gallon it would be "cheap". I only have a problem with inflation when salaries/wages don't rise with the cost of living.

Also, there is plenty of "clean" energy, my father works for MidAmerican Energy, Mr. Buffet's company, and the plants he's worked on use a natural resource to power/spin the turbines to create power. Currently he's in the Salton Sea area where they use the natural pressure from underground wells to spin the turbine's then filter/clean the extracted mess and have to put 90% of it back into the ground. He's also worked on plants that use natural gas and steam to power the turbines. Not to mention Dam, Solar, and Wind power that exists. Coal and Nuclear are far to detrimental as far as I'm concerned, but necessary for some places.

Electric vehicles are teh suck!, have sucked and will continue to suck until someone can workout perpetual motion, until then we will have the Hybrid. GMC now has a Hybrid fullsize pickup! And with time and development, hopefully Hybrid's will provide all the power we know and love from gasoline engines.

[zepharis]

However, Alaskian crude is difficult to drill? Anyone know? then what about transporting oil to market, infrastructure? The costs associated with Alaskian oil I believe is not ecconomically feasiable. I have no problems drilling due to environmental concerns. I want to keep my Jeeps, the hell with electric.
I live in Alaska and most of the population strongly supports drilling in the ANWR due to the economic benefit to the people of Alaska, jobs, good for our State budget reserve etc.., however, no matter how strongly we have pushed the environmentalists have persuaded most people from the lower 48 that it will hurt the caribou and other wildlife and it has failed to be approved for drilling year after year even though it would be of great benefit to everybody in the USA. I am not optimistic.

[FAST1]

I don't know what I would do driving a real 426 hemi, I don't think I could handle the fuel bill-or the power. I've been driving 4 cyl's for so long....well, you know.

Anyway, I've been watching various news agencies on the crude prices and have come to the conclusion that I do not know what will happen. I am lucky enough to have a relative that just retired from a major oil co./ if I get a chance I will ask him what's up. His last job was actually purchasing of crude and scheduling. He knows far more than I.

I had heard that it would be possible to drill a small portion in Alaska without disturbing the wildlife. It would be great for the economy if it ever happens.

I just hope that Iraq gets their oil flowing real soon....they need to stay in the black!

[Just_Sayin]

I had heard that it would be possible to drill a small portion in Alaska without disturbing the wildlife. It would be great for the economy if it ever happens.


Of course it's possible!! We've been doing it since the 1970's in Prudhoe Bay! I lived in Alaska for 15 years and it is by far the most pristine and natural state in the union. And no, the oil industry hasn't ruined it, despite anything that you may hear from the "bunny-huggers" (most of whom have never been to Alaska).

In fact, many of the technologies developed at Prudhoe Bay are aimed at reducing the "footprint" of the drilling operations. For instance, did you know that a single platform can drill sideways? And actually "steer" the drillbit? This technology and technique is what Gov. Murkowski is proposing that the oil companies do just beyond the ANWR border.

As far as infrastructure is concerned, I assume (and I haven't confirmed this) that the plan is to trunk a section of the current Alaska Oil Pipeline to the new drilling platforms for transport South to Valdez.

Honestly, this should have been done years ago. Myopic environmental policy has been a very real part of our current energy problems. Alaska's oil & gas reserves would never make us totally independent of foreign oil, but it would give us another volume option to reduce prices instead of thumping the SPR.

Just_Sayin...

[FAST1]

If we did this, and went to a required mpg for manufacturers(unpopular I know), we could slowly chip away at our demand. I had heard the proposal of a minimum 20 mpg.

Thanks for the insight.

[MJI Capital]

Three words for you all:

Canadian Tar Sands.

Go research that. That is and will be the answer.