aerospacepilot

And its not even summer yet. Just wait until the summer driving season, hurricane season, and labor day. I was predicting $120-$130/barrel by the end of summer, but I may have to raise my estimate.

I think the biggest misconception out there is people who believe oil is not "worth" $117/barrel. Of course it is. If you filled up your car with gas recently, you believe oil is worth $117/barrel. If your airline decided to fly an airplane recently, they believe oil is worth $117/barrel. If the majority of people in the US continue to consume oil, it is certainly worth $117/barrel.

How much do you think oil is worth? By this, I mean at what point do people stop driving and taking public transportation? At what point do people stop buying gas powered cars and start buying hybrid/plug in hybrid/all electric cars? At what point does this happen to a significant portion of the US population (40-50% or more?). I am going to say $180-200/barrel, or gas at about $6-7/gallon. Thoughts?

aupilot

Interesting video to watch about where Charles Maxwell thinks oil is going. He predicts $180/barrel by 2015 and $300/barrel by 2020. Maxwell says around $12/barrel is the cost to produce the oil and another $12/barrel is taxes.

The problem is most of the country does not have access to public transportation and will have to drive. They might cut back on unnecessary trips but will still have to drive to work, grocery store, etc.

If there was a mass produced car that provided an alternative to gas powered cars I think most people would buy it. Until then people will continue to drive even at $300/barrel oil.

http://finance.yahoo.com/tech-ticker/article/11413/High-Oil-Prices-You-Ain't-Seen-Nothing-Yet;_ylt=Amcp7Bxcpccs82rs6k9f8Ftk7ot4?tickers=xom

KC10 FATboy

Although planes, trains, and automobiles are probably the biggest user of oil, just about everything we consume is tied to oil -- either directly or indirectly.

Here is a list of things made from oil.

Air conditioners, ammonia, anti-histamines, antiseptics, artificial turf, asphalt, aspirin, balloons, bandages, boats, bottles, bras, bubble gum, butane, cameras, candles, car batteries, car bodies, carpet, cassette tapes, caulking, CDs, chewing gum, cold, combs/brushes, computers, contacts, cortisone, crayons, cream, denture adhesives, deodorant, detergents, dice, dishwashing liquid, dresses, dryers, electric blankets, electrician’s tape, fertilisers, fishing lures, fishing nets, fishing rods, floor wax, footballs, glues, glycerin, golf balls, guitar strings, hair, hair colouring, hair curlers, hearing aids, heart valves, heating oil, house paint, ice chests, ink, insect repellent, insulation, jet fuel, life jackets, linoleum, lip balm, lipstick, loudspeakers, medicines, mops, motor oil, motorcycle helmets, movie film, nail polish, nylons, oil filters, paddles, paint brushes, paints, parachutes, paraffin, pens, perfumes, petroleum jelly, plastic chairs, plastic cups, plastic forks, plastic wrap, plastics, plywood adhesives, refrigerators, roller-skate wheels, roofing paper, rubber bands, rubber boots, rubber cement, rubbish bags, running shoes, saccharine, seals, shirts (non-cotton), shoe polish, shoes, shower curtains, solvents, solvents, spectacles, stereos, sweaters, table tennis balls, tape recorders, telephones, tennis rackets, thermos, tights, toilet seats, toners, toothpaste, transparencies, transparent tape, TV cabinets, typewriter/computer ribbons, tyres, umbrellas, upholstery, vaporisers, vitamin capsules, volleyballs, water pipes, water skis, wax, wax paper

I am all for conserving oil. Its time to bring back the ban on the bra!

-Fatty

Giggity

Damn ping pong balls!!!

FlyJSH

Today, "alternative fuels" in this country use at least as much fossil fuels to produce as they save. 1 BTU of ethanol requires 1 BTU of old to produce. 1 BTU of Hydrogen requires THREE BTUs to produce and the "raw material" for it is natural gas. There is talk of coal liquefaction, but it too is inefficient and produces some nasty waste.

ewrbasedpilot

What's so misleading is that the airlines are paying a LOT more for their fuel since it has to be "cracked" (that's the excuse they use to justify the higher price). At Fridays closing, "crack" oil for the airlines was over $142 a bbl!!!!
And they wonder why we can't raise prices fast enough? It's time the public had the "real story" of the high price of jet fuel........... An analyst on CNBC did say yesterday that the oil industry is looking for ANY tidbit of news to justify higher prices and he said the sad thing is they are getting it. Nothing will happen till the bottom falls out, just like the housing market. Watch......you'll see....

ewrbasedpilot

Now that is something I can "support".....

ImEbee

Damn Fatboy...you just went Bubba on us. Please tell me that wasn't off the top of your head.

You can do just about anything with oil...

skid

I need to tell my wife this is why she needs to learn to hover!

Spooled

Oil is never going to go down. There are too many developing countries that recently started consuming LOTS of oil, ex. China. The price of oil is going to go higher and higher as more countries begin to develop.

The only way prices are going down is if we find a better alternative fuel or a massive new oil field is found.