Oil will drop to $70 within 3 years' time: Kevin Petak

NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 78

Bas

if we ever see $70 again (which I highly doubt)due to demand destruction it will never be for long as supply decline will force the prices right upto where sustained demand destruction takes place, and that probably can only occur with an ever increasing price.

IOW I believe that Petak's models are outdated and are based, probably, on growing supply.
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essex · Last edited by essex on Sun Jul 13, 2008 3:47 pm; edited 1 time in total

To get to $70 the global economy would have to be completely bankrupted. Let's not go there !

SMA · Coal Joined: Jul 11, 2008 Posts: 18 Location: Sweden

Isn't that just more of the same old wishful thinking? "[...] emphasizing that a “technological shift” powered by PHEVs would eventually start turning things around." I'll believe in that technological shift the day I see it.

Other than that, well...he might be right but if oil hits 70$ because the economy is "depressed" we're probably talking about a depression so huge that 70$ oil won't make anyone happy anyway.

DantesPeak

I don't know much about him but he completely missed the rise in natural gas prices this year, based upon another energy tech stocks report from 2007.

http://energytechstocks.com/wp/?p=570
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americandream

Heck no. Oil will drop to $70 preceded by Indian and Chinese consumption dropping even though the growth programme currently underway in those countries has barely started, and pigs will fly.
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zberry · Heavy Crude Joined: Mar 21, 2006 Posts: 135

Is Mr. Petak aware that the U.S. uses a fiat currency system, and that Mr. Bernanke has promised to use the printing press, or its modern electronic equivalent, to fight any slowdown in "growth"?
If a commentator throws out a statement like that without at least dealing with the fiat currency issue, then I think the commentator is doing a disservice.
The long-term trendline for oil is actually in the 70-80 range, so it wouldn't surprise me to see it touch the trendline again, but I doubt it will. Too many people aware of peak oil now and too hard to hide the obvious depletion.

SoylentGreen · Heavy Crude Joined: May 25, 2008 Posts: 168

If I was Mr Petaks employer, I would randomly pick him for a urinalysis immedietly.

Peleg · Heavy Crude Joined: May 20, 2008 Posts: 391

lowem

Good, good.

The "oil price will fall to $70" people are coming out of the woodwork. The turnaround will be swift, and violent, just as these calls reach a crescendo.

Remember when it hit $100 and the calls were for $50?
Their business model works this way :

1. divide the current record-setting price by two
2. issue press release or give a speech

When it hits $200, these people will be calling for oil to fall to $100 Laughing

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Brickhead · Coal Joined: Jun 23, 2008 Posts: 7

I don't know if this has been posted yet but I haven't seen it on here. This guy is working on pond scum becoming the next oil.

http://www.cnn.com/video/#/video/tech/2008/06/10/obrien.algae.oil.cnn

In the video he says that with the land size of 1/10 of New Mexico, we could supply the whole US with all the oil it needs.

heroineworshipper

If U think subsidizing Freddie Kreugermac stock is going to wipe U out, imagine how many shares of Chevron stock your government would make you buy if there was an oil collapse.
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Brickhead · Coal Joined: Jun 23, 2008 Posts: 7

A different way to produce oil, could mean a different commodity to buy. And the oil that's already in the ground might not be worth what it is now. Or this oil from pond scum gets grouped in with the oil in the ground and the price goes down because supply can keep up with demand.