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Oil hits $100.00 a barrel !!!!

Discussion in 'Uncategorized Threads' started by marty childs, Jan 3, 2008.

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  1. marty childs

    marty childs TS Member

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    Will $100.00 a barrel oil slow your shooting down???
     
  2. rooferbob

    rooferbob Active Member

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    Depends on how much this affects gas pricing for most people!
     
  3. noseeam

    noseeam TS Member

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    I don't know about $100.00 per barrel oil.

    But, one thing for sure $4.00 per gal. gas will slow me down.

    Bo
     
  4. Tom

    Tom TS Member

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    The higher it goes, the better the chances I'll get more oil leases. Yipee.
     
  5. pendennis

    pendennis Well-Known Member

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    The jump was in the futures price. A single commodity trader bid $100 for a contract (1000 bbls minimum). He later sold the contract for $99.40, a loss of $600. All he was doing was getting his fifteen minutes of fame.

    Dennis
     
  6. Capt. Morgan

    Capt. Morgan TS Member

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    There is really nothing any more significant about the $100 figure than about a $99 or $101 figure except for the roundness of the number and the supernatural characteristics some people attribute to it.

    Morgan
     
  7. willing

    willing Member

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    The price of oil is based on the US Dollar(except in Ven), so if the dollar continues to decline in value, the price of oil will continue to rize.

    Bill
     
  8. Hipshot 3

    Hipshot 3 TS Member

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    Here we go again! We got to grow more CORN...or build Hydrogen cars[for which the technology already exists]..........thats all there is to it!
     
  9. pendennis

    pendennis Well-Known Member

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    Hipshot3 - There isn't enough acreage in the US to grown sufficient corn for ethanol. There is no infrastructure to handle the necessary volume.

    Hydrogen technology does indeed exist. However, it isn't scalable. It won't be for multi-decades.

    CDCONLEY is correct. The answer is independence, not retrenching. We have to grow to survive. Nobody ever won a war going on defense.

    Don't be so naive! Think through the process.

    Dennis
     
  10. TC

    TC TS Member

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    Is there any refinery anywhere in the world that buys crude oil on the spot market? Think this is all a shell game!
     
  11. noseeam

    noseeam TS Member

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    People don't seem to be slowing down.

    What is the magic number,price per gal. that will slow people down?

    Bocephas
     
  12. pendennis

    pendennis Well-Known Member

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    TC - refiners do not pay spot prices unless there would be a real emergency. Their contracts are long-term, not short-term.

    The futures price is a ninety-day lead, and fraught with politics, and emotion.

    Best,
    Dennis
     
  13. Tripod

    Tripod Well-Known Member

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    Iowa man!!
    my energy mutual fund has been making over 30% a year for the last three years. Buys lots of gas
     
  14. cdconley

    cdconley TS Member

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    As for ethanol, both sides so far are right and wrong. This could be a viable, readily accessible fuel source. And no corn is not the answer any longer for ethanol fuel stock. We have an ethanol plant that has obtained it’s permits and will be starting construction soon in my county. But they will not be using one ear of corn. The fuel stock they will be using is Sorghum that with the newer process (developed in Canada, thanks to the guys to our north) is massively more efficient than the old corn and wheat process. On top of that it takes about 1/4 the water to grow the sorghum compared to the corn. Interestingly the plant that Dr Lalani is putting in is on the 160ac next to the site of the new oil refinery (1st in 30yr if it ever gets started) so 100% of the ethanol will be sold to the refinery to make up the 15% required by the epa in the gas produced next door. Also there is a deal pending that will ship the waist 15 miles down the road to one of the largest cattle feed yards in the country. Interestingly the fields used to grow the sorghum will replace Sudan grass (a rotator) between produce crops that is currently used for animal feed as the sorghum will be after the starch is removed, so it will have 0 effect on the productivity of the land regarding food or feed. Slick ingenuity don’t you think?

    But ethanol is only a small part of the issue. We’re sitting on up to 20 trillion barrels of fuel oil for conventional gas and diesel in shale rock. We now have technology that allows us to extract that fuel oil without mining any of the rock. The current estimate for this process is the equivalent of between $30-$40 per barrel of oil compared to the $17 per barrel it cost to extract the average barrel of crude. We’re hovering at just under $100/ barrel on the world market, so the shale oil looks very good. The problem is that no oil company is going to invest in brining this fuel because they risk total bankruptcy as long as OPEC has the power to lower the price of crude to below that $30 range. The cost of one plant is about 5 billion. BTW, OPEC has made it very clear that if any of our oil companies make these investments, they will drop the price effectively putting that company out of business. There is a bill that has been at least once rejected by our democratic controlled congress that was written by Boucher and Shimkus that would guarantee a pricing floor by our government to the companies that made this investment. Assuring the success of the venture along with our strategic and economic security. The problem is that those on the left that buy into the GW BS will have nothing to do with new sources of fuel unless they are green fuels, no matter what the economic impact is. That’s because they put there junk science above our strategic and economic security. The original bill allowed for 6 plants, although we need 70 to become totally energy independent. But this is how it works. If a company spends (their own money) and builds a 5 billion dollar plant and OPEC gears up and drives the price of oil down below the $40 range, lets say it goes to $20 (we can only hope) the bill would require the federal government pay the difference to make up the cost. But before you think about this as giving oil companies money, remember the amount of money that is currently being sent out of this country to buy fuel at $100/ barrel. What would happen if we did this. Arab nations and other oil producing nations would lose their hold on us. Radical Islam would be crushed by our new best friends (Saudi Arabia). Our trade deficit would reverse itself, our dollar would skyrocket, us tax revenue would skyrocket because of the massive economic growth, fuel prices would be cut in half and the industry growth in the rocky mountain states and coal producing states would bust wide open. The key to most of our problems lies in the ground beneath our feet. We just have to shut up the liberals nutjobs and go after it.
     
  15. Pump Gun Pimp

    Pump Gun Pimp TS Member

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    Pendennis hit it on the head. They said they are going to investigate it to see if he had something to gain.
     
  16. oz

    oz Active Member

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    you think OPEC sets the prices? we get most of our oil from Canada. The stock market sets the prices to get rich. oz
     
  17. noseeam

    noseeam TS Member

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    Supply and demand, that is the key.When people cut back on their driving oil will go down.Then Opec will cut production.
    Everyone is for (Me,Me,Me) don't care what oil goes to as long as my stocks pay off.
    Well,when the country goes into a Depression,and no one has any cash to buy that oil or gas,then watch your stock.

    \Opec is no friend of ours.

    How much money did Desert Storm cost us?

    Have we been repaid for that?
    I think that little piece of sand we saved from Iraq is a member of Opec.

    They could care less about America.

    Yet, to think the last three presidents have kissed the Royal Saudi family's ass.

    We have no friends in the middle east.

    If you think we do,when oil drops watch them cut production.
    Anyone remember the 1973 oil crisis, and the Yom Kippur War?That should tell you something.

    Bocephas
     
  18. cdconley

    cdconley TS Member

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    OZ,

    I'm going to respectfully disagree with you on that. The stock market trades in oil futures that are pushed up or down based on world demand and production. World demand is controlled by oil users and oil production is controlled by oil producing nations. OPEC is a group of oil producing nations (hum I wonder what OPEC stands for) that collectively control enough world production to move the market at any time they wish. The reason that oil is selling for $100 per barrel when the average cost to produce it is $17 per barrel is because the demand is progressively increasing while OPEC continues to restrict production. Please tell me that you were aware that every time OPEC gets together and decides to “cut” production oil prices go up. That’s because the stock market (buyers) are anticipating a shortage. OPEC in fact does control the world price of oil not the stock market. The stock market simply reacts to the supply and demand climate. The only way to keep this from happening is to control either supply or demand. We are decades from controlling demand (usage) but we realistically could make a huge impact on supply, if we had the will and told the Global Warming nuts to take a hike.
     
  19. Big Al 29

    Big Al 29 TS Member

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    1980 price per barrel of oil = $38.00

    Adjusted for current value of dollar in 2008 is $100.38

    The sky is not falling.

    Build the god damned machines to extract that sweet, sweet, crude from the shale below our feet. 20 Trillion barrels = rest of my life

    At current consumption the USA burns 800 million barrels of oil every 90 days. If we have 20 Trillion barrels in the shale, IN THE USA, at the current rate of consumption we would have enough oil for the next 6,165 years.

    I am questioning the 20 trillion. I am reading more like 1.5 trillion barrels. BUT... The total amount of oil extracted in the history of the word is 1 trillion so what the F are we waiting for?

    The Saudis claim they are not even at peak. They say they are still sitting on 5.7 trillion and don't predict a peak production for another 100 years.

    F' OPEC, F' the Middle East! Who the hell are they trying to threaten? Keep the 20 trillion for ourselves. At 40 a barrel who the hell cares about Saudi oil. Our government talked about how we are addicted to Middle East Oil and how the money we pump into it feeds the terrorists. Well.... screw them and they can get their money from the Chinese yuan or the Indian rupee.

    Global Warming??? Did these guys look outside for the past few weeks?

    Burn baby burn. We got the oil, the world has the oil, suck it out, refine it (real problem is we need more refineries to increase the supply), and lets go!!
     
  20. grammie

    grammie TS Member

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    BucPride29:

    Oil from shale cost more than that per barrel to produce....An economy based on oil from shale would not last the time it took to recover it....

    Price of gold 25 years ago was about 850 per oz.,,,,,adjusted for curent value of dollar in 2008---about 2900.00 dollars!!!!!!!

    With more interest rate cuts coming,,,the value of the dollar will drop even further,,and force the price of gold up---INFLATION!!!!

    The price between 850 and 2900 dollars is what we face with continued Oil per barrel at the current costs!!!!

    Oil from shale would turn the downward slope into a headlong rollercoaster ride with no brakes.................

    AKA Grammie..........
     
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