My Bet on Crude: $150 per barrel
With the worlds population at 6.6 billion people, and the U.S. at 302 million (that’s 4.5% of the worlds population), and with the United States consumers guzzling roughly 14% (13 million barrels a day) of the worlds energy resources, is it any wonder that the U.S. must learn to conserve energy?
The daily supply produced is approx 85 millioin barrels per day (Source: Energy Information Administration of the U.S. Dept of Energy), and demand is at 87 million barrels per day. The laws of basic economics says that the prices MUST go higher.
Even if the U.S. economy experiences a slow down, it is unlikely that the economies of China and India are going to slow to the point where demand will be exceeded by the supply anytime soon.
Add on top of this, the weak dollar -(down over 30% in the last 2 years against other major currencies), what Saudi Oil Producer wants to take payment for his oil in U.S. dollars? I don’t know how you say it in Farsi, but in essence I can hear the guy saying’¦
Well’¦ OK if I must, but to make up for the losses in holding this green currency that is getting weaker by the month, I am going to boost the price a bit just to make sure the infidel doesn’t get the best of the deal.
Its just business after all. Who wants to take a loss on holding a currency that is always going lower? Certianly not Shiek Bin Barrel.
My bet’¦ is that Oil within the next 6 months settles nicely above $150 per barrel and then headlines start talking about $200 per barrel.
Can you spell $8 per gallon for gasoline?
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Walter Schubert, a third generation member of the New York Stock Exchange is the Founder and CEO of GFN.com: The Gay Financial Network.
Can you spell $20 dollars a gallon? I’ve read on many sites that apparently it will get to be about $300/barrel by December. Let’s hope they’re just rumors. How much will our existing oilheat users be affected. They rely on oil to survive the harsh winters. We should try our to best to conserve as much as we can. Please, everyone, you need to conserve. Get rid of those SUVs, get something fuel-efficient. Is a V8 really necessary in the city. Are you doing heavy work? Tsk, tsk, tsk. Check this out: http://www.oilheatamerica.com/index.mv?screen=bioheat
I found that link while working for NORA, it’s a new blend of oil. B5. It produces NO greenhouse gases, reduces emissions, and can help CONSERVE 400 Million gallons of oil. Try that on for size.
Walter: Here’s a fascinating article the lists Eight reasons why $8-a-gallon gas will do us a world of good.
The writer argues this is the best way to stimulate the economy:
Makes a good point??
Farsi is spoken in Iran. Saudi Arabia uses Arabic.
Actually, most U.S. oil is imported from Canada and Mexico.
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
The U.S. also produces about a third of its own oil.
http://tonto.eia.doe.gov/energy_in_brief/foreign_oil_dependence.cfm
Further, global oil output is controlled to maximize price, not because it’s the most oil anyone is capable of producing at any given time. That’s why OPEC came into existence.
http://www.opec.org/aboutus/history/history.htm