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2007-10-16 Home Front Economy

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Posted by Steve White 2007-10-16 00:00|| || Front Page|| [3 views ] Top
File under: Global Jihad

#1 Heavy Demand + OPEC + Geopolitical Tension = $100 per barrel oil

The only good thing about this is it will make gas-electric hybrids more popular.

Posted by Omomomp Big Foot4885 2007-10-16 01:42|| 2007-10-16 01:42|| Front Page Top

#2 Squeeze the oil shale! Tap ANWR! Buy Canadian/Mexican! Whatever, just don't feed jihadi trolls!

Posted by twobyfour 2007-10-16 03:16|| http://www.twobyfour.info]">[http://www.twobyfour.info] 2007-10-16 03:16|| Front Page Top

#3 The guys in D.C. don't sound overly concerned about this anymore. Never mind that it seems to be affecting every other sector in the market. But what the hell, if we can't all tighten our belts so that a few thousand pigs in the futures market can get stinky rich, what the hell good are we. Why even keep us around if you don't bend over and grab our ankles without an argument.

Posted by bigjim-ky 2007-10-16 16:18|| 2007-10-16 16:18|| Front Page Top

#4 It might surprise the burg that we are only getting a small portion of the total imports of crude from Arab/Muslim countries. Our number one importer is Canada followed by Mexico then the Soddy's and then back to Venezuela, then Nigeria. We get small quantities from Algeria, Kuwait, Iraq and Libya. We are weaning ourselves more and more from the Saudi/Kuwait/Iraq cartel. But we need to do more on hydro-cracking technology and get the costs down on extracting crude from Oil Sands (Canadian Oil Sands represent the largest reserves of crude oil in the world). Also, refracting technology for Shale Oil extraction - Lets make Grand Junction a boom town, one more time. That place is where men are men and the sheep run scared.

Posted by Jack is Back!">Jack is Back! 2007-10-16 16:22|| 2007-10-16 16:22|| Front Page Top

#5 Only a few years ago Venezuela was #3, and Saudi Arabia #4, as I recall. But the Presidente Chavez started replacing the oil men with his own friends and family...

Posted by trailing wife 2007-10-16 16:47|| 2007-10-16 16:47|| Front Page Top

#6 But then

PIMF!!

Posted by trailing wife 2007-10-16 16:59|| 2007-10-16 16:59|| Front Page Top

#7 People are not making much noise about the price of oil hitting $86 because the price of gasoline has not gone up yet - it is still reflecting $65-70/barrel oil prices. Gasoline stocks are still relatively plentiful as the driving season winds down and refineries switch over to heating oil production. Where these prices are going to really hurt is heating oil in a month or two. If crude stays high, next spring's gasoline production run-up will easily hit $3.50 and in places $5. At $86 crude, only the producers (companies or governments) are making money selling $2.75 gas - you have $2+ tied up in the feedstock alone, and another 60+ cents in taxes. Add refining, transportation and marketing, and general overhead (my salary) of something like another 60 cents a gallon and it is clear there isn't any profit right now in the 'downstream' (refineries, gas stations etc.) end of the oil business. Integrated oil companies like Exxon & Chevron will make money on the oil production side, but independent refiners and marketers are going to be hurting, big time. Expect government intervention - extra taxes, even nationalization - in response to peoples' screaming to punish the evil oil companies in the (near?) future, but don't expect that to bring down prices. It will just bring down supply and make lines or rationing.

Posted by Glenmore">Glenmore 2007-10-16 18:44|| 2007-10-16 18:44|| Front Page Top

#8 The car we bought at the beginning of the year gets 50% better mileage than our old minivan (28 mpg vs 17 mpg). When we finally replace Mr. Wife's 1999 Saab, the new vehicle, another inexpensive little SUV which will someday take the second trailing daughter to college, will also get 50% improved gas mileage. So while our cost per fill-up is significantly increased, our total spending on gasoline hasn't gone up nearly as much.

I've been seeing an awful lot of new little cars on the roads around here, where not long ago everyone seemed to have a minivan or a big SUV, so I imagine our experience is fairly common.

Posted by trailing wife 2007-10-16 19:13|| 2007-10-16 19:13|| Front Page Top

23:52 Zenster
23:40 3dc
23:14 Frank G
23:14 Eric Jablow
23:08 Eric Jablow
23:00 Zenster
22:53 Pappy
22:33 Glenmore
22:29 Pappy
22:14 trailing wife
21:55 Broadhead6
21:52 another lame spammer
21:49 Broadhead6
21:46 JosephMendiola
21:46 Frank G
21:40 Frank G
21:40 N guard
21:38 DarthVader
21:36 Frank G
21:32 Old Patriot
21:30 Zenster
21:23 OldSpook
21:19 Nimble Spemble
21:16 JosephMendiola