Oil $100 a BBL.........
02-25-2008 | 07:36 AM
#161
With The Resistance
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From: Burning the Agitprop of the Apparat
As a demonstration project, the TVA built a large reservoir in the mountains, connected to the valley below by a massive water pipe. During periods of low demand, they would use surplus electricity to pump water up there, then let it out to run a turbine during peak demand. Don't know how successful this has been, or whether they will ever recover the cost to build it.
02-25-2008 | 10:26 PM
#162
Gets Weekends Off
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From: Capt
Hi!
Why is oil going to go up in price, and keep going up in price, even as we here in the US use less???
China (followed by India-10 years back):
This author says that oil is now right-priced, and it's going higher, because of China (India is about 10 years behind them, so just starting their own oil consumption push).
Some oil pundits have claimed that China's demand will ease as oil prices rise. This author says they are delusional!
http://www.resourceinvestor.com/pebble.asp?relid=40701
Quote:
PARIS (ResourceInvestor.com) -- The market has spoken. For once the machinations of the market are being based not on herd mentality, software, technicals or the whims of the mass media. Instead the worrying thing is the moves to $100 oil are based on reality, demand. Chinese demand.
It has not mattered a jot to China as oil has risen in price.
...
If Chinese demand were going to slacken off it would have happened by now. But nothing of the sort is going on. Although, as we have said before here, the figures that come out of Beijing can be slightly odd, it appears Chinese demand is rising somewhere around 10 per cent per year at the moment.
cliff
LRD
Why is oil going to go up in price, and keep going up in price, even as we here in the US use less???
China (followed by India-10 years back):
This author says that oil is now right-priced, and it's going higher, because of China (India is about 10 years behind them, so just starting their own oil consumption push).
Some oil pundits have claimed that China's demand will ease as oil prices rise. This author says they are delusional!
http://www.resourceinvestor.com/pebble.asp?relid=40701
Quote:
PARIS (ResourceInvestor.com) -- The market has spoken. For once the machinations of the market are being based not on herd mentality, software, technicals or the whims of the mass media. Instead the worrying thing is the moves to $100 oil are based on reality, demand. Chinese demand.
It has not mattered a jot to China as oil has risen in price.
...
If Chinese demand were going to slacken off it would have happened by now. But nothing of the sort is going on. Although, as we have said before here, the figures that come out of Beijing can be slightly odd, it appears Chinese demand is rising somewhere around 10 per cent per year at the moment.
cliff
LRD
02-28-2008 | 10:46 AM
#163
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HOSED BY PBS AGAIN
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Oil is priced over $100 because of this "$20-$30 WAR premium", "$10-$20 hurricane premium" and a few other things like SPECULATORS driving the price higher. They don't realize the damage they are inflicting on the economy as a whole. I know, I know, .....they're entitled to everything they earn and good for them, but in the end, it's you and I who will pay through the nose for it. I see it's up almost $3 a bbl today. Great...........another $132 MILLION off of CAL's bottom line. I guess now is a GREAT TIME to negotiate another contract. 
02-28-2008 | 01:25 PM
#164
With The Resistance
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From: Burning the Agitprop of the Apparat
Oil is priced over $100 because of this "$20-$30 WAR premium", "$10-$20 hurricane premium" and a few other things like SPECULATORS driving the price higher. They don't realize the damage they are inflicting on the economy as a whole. I know, I know, .....they're entitled to everything they earn and good for them, but in the end, it's you and I who will pay through the nose for it. I see it's up almost $3 a bbl today. Great...........another $132 MILLION off of CAL's bottom line. I guess now is a GREAT TIME to negotiate another contract.
What is your proposed solution?
02-28-2008 | 04:23 PM
#165
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From: Burning the Agitprop of the Apparat
Today oil shot up $4 a bbl and briefly crossed the $100 mark again. This is going to KILL aviation unless something is done to curtail this insanity. When oil companies are raking in $40 BILLION in profits for a quarter, something is definitely wrong with the picture. At CAL, every $1 increase is another $44 MILLION off the bottom line, or over $176 MILLION off the bottom line just today!!! I hope the oil companies/speculators, and Saudi's are happy with what they're doing to everyone. I just wish our government would grow some balls (even tiny ones would help) and say enough is enough and start going after the speculators who look for every little nuance to push the price ever higher. But, since we're beholden to the middle-east and special interest groups, that will never happen and the consumer will be blamed for using too much. My guess is that "recession" will be a mild word for what's going to really be the end result. The average american can't afford to fill up their gas tank much more if this keeps up. I guess those poor people getting an "economy stimulus rebate check" are salivating while waiting for a few more dollars to fill their tank. Meanwhile, the oil people are laughing their way to the bank.................
Flame away..............
I see you have managed to narrow it down to speculators. The above is your opening post in this thread. What happened to Saudis, special interest, oil people, oil companies,government, and the Middle East?
Could it be that we have made some progress in 17 pages?
What you refer to as speculators are actually the people who are able to fund a free market by maintaining liquidity. Without people willing to risk capital on the future value(or loss of value) of a given commodity, there would be no market and zero realistic price. A liquid market is needed to keep prices in check and to support any notion of fair value.
02-28-2008 | 04:34 PM
#166
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HOSED BY PBS AGAIN
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02-28-2008 | 04:42 PM
#167
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From: Burning the Agitprop of the Apparat
And your solution would be what? Ever visit any country without free market speculation?
What do you think the price would be if there was no free market?
Go to Europe, buy a gallon of gasoline and report back, you may get a surprise.
Or take a look around the world if you are really interested in the why and how: http://europe.theoildrum.com/node/2653
Last edited by jungle; 02-28-2008 at 04:49 PM.
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