Don’t worry, just a little bump - $70 is just around the corner. Short traders just keep making those margin calls, mortgage the house if you have to. Fortunes await you! PO is for pansies and doomers. At $70 short some more ..... it is going back to $22 .... the world is awash with oil ........ reality has nothing to do with it, its all in those charts!!!!!!!!!!
Posted: Sat Jun 07, 2008 3:56 am Post subject: US Energy Secretary: Flat production behind oil prices
US Energy Secretary: Flat production behind oil prices
Quote:
Nations should fight rising oil prices by cutting subsidies and vastly increasing investment in energy, while oil-producing countries need to ramp up output and divulge more information about how much they produce, the U.S. energy secretary said Saturday.
Samuel Bodman, attending two days of meetings in northern Japan among energy chiefs from Group of Eight industrialized countries and other top economies, said the surge in world oil prices was largely a simple problem of supply and demand.
Production has stalled since 2005 at 85 million barrels a day, while economic growth — particularly in China and India — has pushed demand ever higher, Bodman said before a meeting of ministers from the U.S., Japan, South Korea, India and China.
"We're in a difficult position where we have a lid on production and we have increasing demand in the world," he told a small group of reporters, dismissing the effects of speculation and unclear inventory levels and other factors on oil prices.
"I would devoutly hope we ... see a reduction of the use of oil in the world on the one hand, and an increase in the supply so we can see some mitigation in the pressure on price," Bodman said.
Posted: Sat Jun 07, 2008 4:10 am Post subject: Re: US Energy Secretary: Flat production behind oil prices
This is a very important acknowledgement.
Bodman, the solution is for Americans to use less. High overall proportion of consumption, high per capita consumption, put the two together and you see one very juicy "low hanging fruit" right in your back yard. The US could save more oil by doubling its mileage than from any conceivable world production increase. Efficiency or bankruptcy, Bodman. This is one of those moments you get in business. Getting lower overheads by pleading with suppliers only gets you so far. _________________ "The American people are watching the numbers climb higher and higher at the pump and they're waiting to see what the Congress will do." - George W Bush
Joined: Dec 16, 2004 Posts: 705 Location: Santa Monica, CA
Posted: Sat Jun 07, 2008 5:01 am Post subject: Re: US Energy Secretary: Flat production behind oil prices
Twilight wrote:
The US could save more oil by doubling its mileage than from any conceivable world production increase.
Doubling the milage of the US car fleet isn't so simple, from an economic standpoint. It looks as if Americans aren't going to make a concerted effort to do that before the price of fuel goes up to really high levels due to PO. But shortages will accompany this period, which will mean heavy curtailment of driving and rationing. This will ultimately stall the turnover of a new fleet as a flood of dirt cheep old cars hit the market. People won't be able to get trade-in value so they won't be able to get new super-high MPG cars. The American fleet cannot make any kind of dramatic improvement under such conditions.
As Americans are forced to cut down driving, it becomes apparent that efficiency can be instantaneous and effective by using the system in a different way: less cars on the roads with more passengers, shorter work commutes, alternatives to driving, etcetera.
...And after 10 years of stagnation and ever deeper curtailment, Americans abandon the automobilized lifestyle altogether.
Posted: Sat Jun 07, 2008 6:11 am Post subject: Re: US Energy Secretary: Flat production behind oil prices
'Bodman said economic troubles because of high prices would only hurt oil producers.
"It's not good for producing nations to see the U.S. struggling economically. They depend on us to be a significant engine in world economic activity," Bodman said. '
Is he implying that our economic woes are their fault?
Posted: Sat Jun 07, 2008 7:51 am Post subject: Re: US Energy Secretary: Flat production behind oil prices
Drifter wrote:
US Energy Secretary: Flat production behind oil prices
Quote:
Nations should fight rising oil prices by cutting subsidies and vastly increasing investment in energy, while oil-producing countries need to ramp up output and divulge more information about how much they produce, the U.S. energy secretary said Saturday.
Samuel Bodman, attending two days of meetings in northern Japan among energy chiefs from Group of Eight industrialized countries and other top economies, said the surge in world oil prices was largely a simple problem of supply and demand.
Production has stalled since 2005 at 85 million barrels a day, while economic growth — particularly in China and India — has pushed demand ever higher, Bodman said before a meeting of ministers from the U.S., Japan, South Korea, India and China.
"We're in a difficult position where we have a lid on production and we have increasing demand in the world," he told a small group of reporters, dismissing the effects of speculation and unclear inventory levels and other factors on oil prices.
"I would devoutly hope we ... see a reduction of the use of oil in the world on the one hand, and an increase in the supply so we can see some mitigation in the pressure on price," Bodman said.
Production has stalled since 2005 at 85 million barrels a day, while economic growth — particularly in China and India — has pushed demand ever higher
Hence... peak oil is here.
It is nice of him to acknowledge there is a problem, ...15 years after we should have started doing something about it. The Cheney/PNAC tactic of invading a major oil producer has not helped. Somehow I think they are still not convinced it was a failure and have their sights set on at least one, possibly two more major invasions.
Posted: Sat Jun 07, 2008 8:14 am Post subject: Re: US Energy Secretary: Flat production behind oil prices
There you have it. Flat production since 2005. Just the news article I have been waiting for to direct family and friends to because they don't quite get what I have been saying for the past 5 years. Maybe if some "important" folk are saying it....it must be true! Ha ha!
But still......I figure the blame game will continue just so people can feel better about the whole thing or justify their bad behavior once things really get going.
Catbox
*I may take a mental break from the news, market, and PO.com for a while......I've hit that point again. _________________ President Bush: “There’s no question about it. Wall Street got drunk—that’s one of the reasons I asked you to turn off the TV cameras. It got drunk, and now it’s got a hangover."
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