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RE: Oil hits $135/barrel- what does this mean for the economy?
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/3/2008 12:27:07 PM
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mapachito13
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quote:
ORIGINAL: kernsfamily
Those investors are banking on fears that it will become much more difficult and expensive to produce oil, and, eventually, the world might not have enough.
They also think we are going to run out one day because everyone is still under the wrong assumption that oil is a "fossil fuel"!
This type of thinking actually works to the oil companies advantage because if we are "running out of oil" then they can keep ratcheting up the price.
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/6/2008 4:07:41 PM
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blessedinnyc
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quote:
ORIGINAL: ladyingrace1979
 This is without a doubt very bad news for our economy!! It mean no un-necacary traveling. It means Ression, which we are already in. It means oil componies make more money, while working americians strugle to make ends meet. The oil prices are the result of nothing but unbrideled greed. Just because somone can charge as much as possable for something does not make it right to do so.
I think there's a real quandry here. I don't think anyone wants some single-mom who needs to take her kids to school to pay $4/gallon for gas. At the same time, in the long-run, the markets are at their most efficient when the only controls we have are the following:
-No monopolies
-No market corners.
-No insider trading.
-No lying to consumers about your product.
However, none of these things are going on, and the market still thinks oil prices should be high. It is trying to send consumers a signal that they need to consume less and producers a signal that they need to produce more.
quote:
They also think we are going to run out one day because everyone is still under the wrong assumption that oil is a "fossil fuel"!
Whether or not oil is a fossil fuel, it is getting more and more difficult to maintain oil production. Even if the oil in the ground is 5700 years old, it is estimated that we may run out of it in the next 100 years. That means that it took about 5500 years to build up 200 years worth of oil, meaning that, long-term oil production won't run much higher than 4% of the average oil consumption over the past 100 years.
In reality, aside from random quirks in bacterial DNA, almost everything on this planet behaves as though the earth is five billion years old. Why do we assume oil is different?
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/6/2008 5:50:33 PM
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mapachito13
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quote:
ORIGINAL: blessedinnyc
it is estimated that we may run out of it in the next 100 years.
And how did they arrive at that estimate. Do scientists know how much oil the earth truly holds?
quote:
That means that it took about 5500 years to build up 200 years worth of oil, meaning that, long-term oil production won't run much higher than 4% of the average oil consumption over the past 100 years.
In reality, aside from random quirks in bacterial DNA, almost everything on this planet behaves as though the earth is five billion years old. Why do we assume oil is different?
You are basing this 5500/200 theory based on what?
Excuse me, but I don't understand the point you were trying to make on the bacterial DNA. Please clarify.
BTW, I agree we need to diversify our energy supply but I don't like manipulation of the supply by oil producers to produce a price wanted by them. Proof of this? Attend an OPEC meeting.
When has an oil company ever lost money? Never! I think they are the only sector in any economy that can make this claim.
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/6/2008 6:46:52 PM
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blessedinnyc
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quote:
ORIGINAL: mapachito13
And how did they arrive at that estimate. Do scientists know how much oil the earth truly holds?
It was predicted by M. King Hubbert, an oil geologist, who noticed that oil production in most oil fields generally follows a normal curve (that is, a bell curve) with a little statistical noise built in. He said that starting around 2010-2025, conventional oil production would peak and start declining.
More interestingly, he correctly predicted that US oil production in the lower 48 states would peak in 1970.
quote:
You are basing this 5500/200 theory based on what?
Excuse me, but I don't understand the point you were trying to make on the bacterial DNA. Please clarify.
I'm talking about the Young-earthers out there. I think life has been on this planet for billions of years, and this has largely been responsible for the several-hundred-million year old oil deposits we see.
In any case, most geologists agree that in the next 200 years, there are geological limits to how much oil we can produce. Our difficulty increasing oil supply at this point seems to indicate that we are hitting this limit.
quote:
BTW, I agree we need to diversify our energy supply but I don't like manipulation of the supply by oil producers to produce a price wanted by them. Proof of this? Attend an OPEC meeting.
OPEC lost control of the oil market back in the early 80s when a bunch of countries started cheating and exceeding the production quotas.
The best way to diversify our energy supply is to keep oil prices high. In the long run, this is bad news for oil producers because it means they will permanently lose their source of revenues when we can replace this energy source. And from the looks of it- with plug-in hybrids and a huge growth in alternative energy, it is becoming apparent that we are starting to do just that.
quote:
When has an oil company ever lost money? Never! I think they are the only sector in any economy that can make this claim.
Of course they've lost money. They lost money back in 1998. That lost money in the mid-eighties. Oil is a cyclical industry, and the oil firms tend to do their worst when everybody else is doing well (like banks.)
< Message edited by blessedinnyc -- 6/6/2008 6:52:57 PM >
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/7/2008 8:42:52 AM
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mapachito13
Posts: 2335
Joined: 10/1/2007
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quote:
ORIGINAL: blessedinnyc
It was predicted by M. King Hubbert, an oil geologist, who noticed that oil production in most oil fields generally follows a normal curve (that is, a bell curve) with a little statistical noise built in. He said that starting around 2010-2025, conventional oil production would peak and start declining.
More interestingly, he correctly predicted that US oil production in the lower 48 states would peak in 1970.
Hubbert did that in 1956 and did not account for all the reserves found since then. Many people have wrongly predicted the decrease in the amount of global oil since then. Many said we would run out in the 80's. Have global reserves been dropping or increasing?
For a different side of the oil story. I suggest two books. "Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil" by Jerome Corsi and Craig Smith and "The Deep Hot Biosphere : The Myth of Fossil Fuels" by Thomas Gold. Gold's book talks about the science behind the abiotic theory and Corsi and Smith talk about the politcal side.
< Message edited by mapachito13 -- 6/7/2008 8:57:13 AM >
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/9/2008 7:14:44 PM
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inthysite
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Here is an article that talks about exactly what I mentioned earlier. The recent jump in oil prices had nothing to do with supply or demand. Nothing changed except the fact that Morgan Stanley predicted that oil would reach $150 by July, and Israel made a comment about attacking Iran if it didn't stop trying to develop nuclear weapons.
SANTA MONICA, Calif., June 6, 2008 /PRNewswire-USNewswire via COMTEX/ ----Price Spike Follows Self-Serving Prediction of $150 a Barrel, Israeli Threat Against Iran; U.S. Government Must Speed Market Regulation
The price of crude oil jumped $11 a barrel on Friday to $138, mostly on the ginning up of news that has nothing to do with current supply and demand, said Consumer Watchdog. The spike followed a prediction by investment bank Morgan Stanley that oil would reach $150 a barrel by July 4, and an Israeli cabinet minister's warning that Israel would attack Iran if Tehran did not stop developing nuclear weapons.
"In the actual physical market for oil, nothing changed between yesterday and today," said Judy Dugan, research director of Consumer Watchdog. "Morgan Stanley knew full well that making the prediction would spike prices, especially by calling for $150 oil in less than a month. As for the Israeli statement, traders instantly grabbed it as a reason to spike prices, even though it appeared to be a calculated warning, not a signal that bombers are about to take off. Obviously, diplomatic nuance means nothing to speculators."
Early in the day, a smaller price rise in crude oil was blamed on a weaker dollar and oil demand in Asia. But, said the nonprofit, nonpartisan Consumer Watchdog, ever-bleaker economic news in the U.S., including rising unemployment, should have pressed the price downward.
"The bottom line of this oil price feeding frenzy is that drivers in the U.S. are likely to suffer $4.50 gasoline, while in California and some other states may hit $5.00 a gallon for regular this summer," said Dugan. "Inflation will keep spiking the price of groceries as well as gas. Congress and the White House have to stop talking and put some emergency regulations on trading markets, including electronic markets that are completely unregulated."
Oil Price Spikes to $138 a Barrel Shows a Market Out of Control, Says Consumer Watchdog
_____________________________
Let the words of my mouth and the meditation of my heart
Be acceptable in Thy sight, O LORD, my rock and my Redeemer - Psalm 19:14
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/9/2008 7:32:53 PM
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mapachito13
Posts: 2335
Joined: 10/1/2007
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quote:
ORIGINAL: inthysite
Here is an article that talks about exactly what I mentioned earlier. The recent jump in oil prices had nothing to do with supply or demand. Nothing changed except the fact that Morgan Stanley predicted that oil would reach $150 by July, and Israel made a comment about attacking Iran if it didn't stop trying to develop nuclear weapons.
I wonder how many shares of oil company stocks Morgan Stanley owns. Wanting to offset their losses in the financial sector methinks!
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/10/2008 11:06:04 AM
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davemiller7
Posts: 866
Joined: 3/5/2008
From: NC via NY
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Hopefully, these greedy pigs will get their "rewards" in my lifetime. I'd be glad to toss a penny or two into their tin cups as they stand/sit on the sidewalk, begging.
-Dave
quote:
ORIGINAL: mapachito13
quote:
ORIGINAL: inthysite
Here is an article that talks about exactly what I mentioned earlier. The recent jump in oil prices had nothing to do with supply or demand. Nothing changed except the fact that Morgan Stanley predicted that oil would reach $150 by July, and Israel made a comment about attacking Iran if it didn't stop trying to develop nuclear weapons.
I wonder how many shares of oil company stocks Morgan Stanley owns. Wanting to offset their losses in the financial sector methinks!
_____________________________
-Dave
The Prayer of Protection
The light of God surrounds me,
The love of God enfolds me,
The power of God protects me,
The presence of God watches over me.
Wherever I am, God is.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/10/2008 11:56:09 AM
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blessedinnyc
Posts: 1816
Joined: 10/12/2007
Status: offline
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quote:
ORIGINAL: davemiller7
Hopefully, these greedy pigs will get their "rewards" in my lifetime. I'd be glad to toss a penny or two into their tin cups as they stand/sit on the sidewalk, begging.
-Dave
Don't worry. We'll probably be fine. Recently, one financial company paid an average severence of $1 million/employee in the layoffs it ran.
Oil prices may be higher because of speculators, but speculators can only make a profit if there really is a supply problem. If there isn't a supply problem, they will lose a lot of money. What I think many pols don't understand, though, is that if US citizens can't speculate on oil, that's just less competition for the Bahamian, British, Chinese, and Saudi hedge funds.
The best way to help working people and hurt oil speculators is to raise interest rates. This is going to get inflation back under control. It could mean more layoffs, but we had the same problem back in the late 1970s, and high interest rates in the late '70s and early '80s were part of the reason we were able to have a great economy in the mid to late '80s.
If you used the pre-1983 method of calculating inflation, inflation today would be roughly equivalent to inflation seen in the late '70s.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/10/2008 9:32:45 PM
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cammo2006
Posts: 3670
Joined: 11/25/2005
From: The home of the coathanger and the Opera House...
Status: online
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quote:
ORIGINAL: blessedinnyc
quote:
ORIGINAL: mapachito13
And how did they arrive at that estimate. Do scientists know how much oil the earth truly holds?
It was predicted by M. King Hubbert, an oil geologist, who noticed that oil production in most oil fields generally follows a normal curve (that is, a bell curve) with a little statistical noise built in. He said that starting around 2010-2025, conventional oil production would peak and start declining.
More interestingly, he correctly predicted that US oil production in the lower 48 states would peak in 1970.
quote:
You are basing this 5500/200 theory based on what?
Excuse me, but I don't understand the point you were trying to make on the bacterial DNA. Please clarify.
I'm talking about the Young-earthers out there. I think life has been on this planet for billions of years, and this has largely been responsible for the several-hundred-million year old oil deposits we see.
In any case, most geologists agree that in the next 200 years, there are geological limits to how much oil we can produce. Our difficulty increasing oil supply at this point seems to indicate that we are hitting this limit.
quote:
BTW, I agree we need to diversify our energy supply but I don't like manipulation of the supply by oil producers to produce a price wanted by them. Proof of this? Attend an OPEC meeting.
OPEC lost control of the oil market back in the early 80s when a bunch of countries started cheating and exceeding the production quotas.
The best way to diversify our energy supply is to keep oil prices high. In the long run, this is bad news for oil producers because it means they will permanently lose their source of revenues when we can replace this energy source. And from the looks of it- with plug-in hybrids and a huge growth in alternative energy, it is becoming apparent that we are starting to do just that.
quote:
When has an oil company ever lost money? Never! I think they are the only sector in any economy that can make this claim.
Of course they've lost money. They lost money back in 1998. That lost money in the mid-eighties. Oil is a cyclical industry, and the oil firms tend to do their worst when everybody else is doing well (like banks.)
Actually, Hubbert's prediction was 2000 for the global peak. You are correct however in that he absolutely nailed the US peak.
Of course, he didn't have as much data to work with as we do now -- the closer you are to the peak the more accurately you'll be able to predict it, because you have more data to extrapolate from.
It's others that have taken up Hubbert's methodology and recalculated the numbers with more current data that gives the 2010-2025 window (different groups have used slightly different assumptions hence the variety of dates for those unfamiliar with the theory).
Personally, I feel it'll be closer to 2010 than 2025 -- but even if it is 2025, the transition needs to start now. Better safe than sorry, IMHO. Don't quote me on it though, nobody really knows for sure.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/11/2008 8:15:27 AM
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mapachito13
Posts: 2335
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quote:
ORIGINAL: cammo2006
Actually, Hubbert's prediction was 2000 for the global peak. You are correct however in that he absolutely nailed the US peak.
Of course, he didn't have as much data to work with as we do now -- the closer you are to the peak the more accurately you'll be able to predict it, because you have more data to extrapolate from.
It's others that have taken up Hubbert's methodology and recalculated the numbers with more current data that gives the 2010-2025 window (different groups have used slightly different assumptions hence the variety of dates for those unfamiliar with the theory).
Let's see. Do you think the environmental anti-oil, anti-drilling drive in the 1970's had anything to do with "peaking" oil production in the US?
So I pose the question to you that blessedinnyc seems reluctant to answer. Have the amount of "proven global oil reserves" been increasing or decreasing? It only requires a one word answer.
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/11/2008 11:35:47 AM
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blessedinnyc
Posts: 1816
Joined: 10/12/2007
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quote:
ORIGINAL: mapachito13
Let's see. Do you think the environmental anti-oil, anti-drilling drive in the 1970's had anything to do with "peaking" oil production in the US?
So I pose the question to you that blessedinnyc seems reluctant to answer. Have the amount of "proven global oil reserves" been increasing or decreasing? It only requires a one word answer.
Mapachito,
The world has roughly 1.3 billion worth of proved oil reserves; 1.15 Trillion barrels if you factor out the technical reclassification of Canada's tar sands in 2003.
Without Canada's tar sands, oil reserves have increased by 6% since 2004 and 12.6% since 2001. For comparison purposes, during a similar period of high prices during the late '80s, oil reserves increased by 11.2% between 1988 and 1992 and a whopping 41.4% between 1985 and 1992. I'd love to do a comparison between 1974 and 1981, but the EIA only estimates world oil reserves going back to 1980, so the closest comparison I can get in a high-price period is the run-up to the Gulf War.
Perhaps the most alarming part of the reserve growth rate is how it compares to the average growth rate over the past 28 years of data I have. Between 1980 and 2001, oil reserves had an average growth rate of 2.2%/year (again, factoring out the Canadian tar sands, which were discovered and made recoverable in the '80s and '90s- factoring these discoveries in might add an extra 0.5% to the world's reserve growth rate). Between 2001 and now, however, the average growth rate has been 1.7%.
So the answer is that reserves haven't been increasing anywhere near as much as they should.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/12/2008 3:03:09 PM
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jkdjr25
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From: Michigan
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I actually have a plan that would help the situation.
1. Immediately lift the ban on importing sugarcane based ethanol. It's vastly more efficient than corn based ethanol and will help alleviate the price of gas in some respects as it's cheaper to produce.
2. Enact laws that mandate the best fuel efficiency that our current level of technology can create. This is a no brainer and it's something that would be supported by the majority of the people.
3. Reward companies, like Honda, that are researching other alternative fuels. (Honda has cars that run on natural gas, hybrids, and cars that run off of hydrogen fuel cells. This is absolutely a step in the right direction)
4. Allow for responsible drilling. China is no example to follow here. In fact let me reiterate the word responsible. I have no problem with this, I just don't want any company to be given carte blanche in regards to drilling for oil whenever and however they want.
5. Look into coal to oil liquification. Again this seems like a no brainer, at least until research into other areas pan out.
If we do all these things we're looking at energy independence. It's just a matter of the people getting angry enough to demand it be done.
_____________________________
I reject your reality and subsitute my own.- Adam Savage, Mythbusters
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/12/2008 4:16:38 PM
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mapachito13
Posts: 2335
Joined: 10/1/2007
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quote:
ORIGINAL: blessedinnyc
quote:
ORIGINAL: mapachito13
Let's see. Do you think the environmental anti-oil, anti-drilling drive in the 1970's had anything to do with "peaking" oil production in the US?
So I pose the question to you that blessedinnyc seems reluctant to answer. Have the amount of "proven global oil reserves" been increasing or decreasing? It only requires a one word answer.
Mapachito,
The world has roughly 1.3 billion worth of proved oil reserves; 1.15 Trillion barrels if you factor out the technical reclassification of Canada's tar sands in 2003.
Without Canada's tar sands, oil reserves have increased by 6% since 2004 and 12.6% since 2001. For comparison purposes, during a similar period of high prices during the late '80s, oil reserves increased by 11.2% between 1988 and 1992 and a whopping 41.4% between 1985 and 1992. I'd love to do a comparison between 1974 and 1981, but the EIA only estimates world oil reserves going back to 1980, so the closest comparison I can get in a high-price period is the run-up to the Gulf War.
Perhaps the most alarming part of the reserve growth rate is how it compares to the average growth rate over the past 28 years of data I have. Between 1980 and 2001, oil reserves had an average growth rate of 2.2%/year (again, factoring out the Canadian tar sands, which were discovered and made recoverable in the '80s and '90s- factoring these discoveries in might add an extra 0.5% to the world's reserve growth rate). Between 2001 and now, however, the average growth rate has been 1.7%.
So the answer is that reserves haven't been increasing anywhere near as much as they should.
But it is increasing.
Have all possible places that might contain oil been explored? A simple yes or no will suffice.
If the answer is no, then the possibility exists that more is to be found. Also, and you can correct me if I am wrong, the reserves are the oil that hasn't been pumped from the ground yet? If that number is still increasing even with our increased usage then we are still moving in a positive direction.
Don't get me wrong, I still think we need to become more energy efficient and also develop alternative sources. Diversification is always a good thing. One can't have all their energy eggs in one basket! But some of these alternatives have not been objectively evaluated I think.
_____________________________
Peace Sells....But Who's Buying!
"I would argue that the most serious threat to the United States is not someone hiding in a cave in Pakistan or Afghanistan, but our own fiscal irresponsibility."-David Walker, fmr comptroller general of the US
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 6:28:07 PM
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blessedinnyc
Posts: 1816
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quote:
ORIGINAL: mapachito13
But it is increasing.
Well, it depends on how you want to measure it. Yes, the amount of oil we believe we can extract in the ground has increased. But it hasn't kept pace with demand. In other words, we had about 35 years worth of reserves back in 2000. Today, because energy demand has increased, we have more like 30. I think this is bad news, given how much high oil prices should be spurring work in Exploration and Production.
quote:
Have all possible places that might contain oil been explored? A simple yes or no will suffice.
Short of Antarctica, the Arctic, and maybe a few parts of the middle of the ocean, the answer is pretty much yes.
That doesn't mean we won't find more oil in the explored parts. But it means we'll have to do more work than use satellites to find places to drill.
quote:
If the answer is no, then the possibility exists that more is to be found. Also, and you can correct me if I am wrong, the reserves are the oil that hasn't been pumped from the ground yet? If that number is still increasing even with our increased usage then we are still moving in a positive direction.
It's likely we'll find more. But we're having a much harder time of finding it. And that job, naturally, will get harder and harder. Remember the tar pits that Marco Polo wrote about? All that oil is gone.
All the oil that's bubbling out of the ground, seeping out of rocks, buried less than 1000 feet deep- that stuff is all gone.
quote:
Don't get me wrong, I still think we need to become more energy efficient and also develop alternative sources. Diversification is always a good thing. One can't have all their energy eggs in one basket! But some of these alternatives have not been objectively evaluated I think.
And I'm not against exploring for more oil. I just think that a better investment right now is probably alternative energy. There are a lot of solar cell manufacturers and wind turbine producers out there with P/Es below 20. Large integrated oil companies right now have P/Es as high as 13, so I think that a lot of alternative energy stocks might be excellent GARP stocks as alternative energy moves becomes mainstream energy over the next 30 years.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 7:00:23 PM
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Sophie11
Posts: 750
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I understand investing in alternative energies, for a variety of reasons. I don't however believe we should be doing it because a bunch of companies who stand to make huge amounts of $$$ are telling us to, and scaring everyone with all of these stories of running out of oil. There is more oil out there that we are not drilling. And most of the time it's the same people keeping us from drilling who are saying we are running out!
Most of this is just a money making scam. Scare enough people into thinking the world is going to end and then you can sell them whatever you say will save them. And most of it does boil down to the whole global warming charade. Just like NBCs "green week". You know, they spent the week promoting "going green" and talking about alternative energies so as not to destroy our world with carbon emissions. Well I wonder how many people know that GE is a parent company of NBC, and the largest U.S. supplier of wind power equipment. Funny...
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 7:24:45 PM
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blessedinnyc
Posts: 1816
Joined: 10/12/2007
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quote:
ORIGINAL: Sophie11
I understand investing in alternative energies, for a variety of reasons. I don't however believe we should be doing it because a bunch of companies who stand to make huge amounts of $$$ are telling us to, and scaring everyone with all of these stories of running out of oil. There is more oil out there that we are not drilling. And most of the time it's the same people keeping us from drilling who are saying we are running out!
The only people making a lot of $$$ right now are oil companies. Solar companies and wind manufacturers are profiting right now, but alternative energy produces about 3% of what big oil produces and the market is a whole lot more fragmented, so you won't see billion dollar profits. You will see PEGs above 1, though.
quote:
Most of this is just a money making scam. Scare enough people into thinking the world is going to end and then you can sell them whatever you say will save them. And most of it does boil down to the whole global warming charade. Just like NBCs "green week". You know, they spent the week promoting "going green" and talking about alternative energies so as not to destroy our world with carbon emissions. Well I wonder how many people know that GE is a parent company of NBC, and the largest U.S. supplier of wind power equipment. Funny...
Perhaps it's a scam to scare people, but the real question is what is the cheapest way to supply China (which is flush with USD) and other parts of the developing world with the energy it needs. I think the answer is probably going to involve renewables- as most people will agree, oil is struggling to meet this need on its own.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 7:37:47 PM
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Sophie11
Posts: 750
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quote:
ORIGINAL: blessedinnyc
The only people making a lot of $$$ right now are oil companies.
Wrong. They may be making a lot, but so are many other companies. And though you ignored my comment on GE, they are also a big money maker and their profits increased almost 30% between 2005 and 2007. Exxon, on the other hand, only had a 9% increase in profits. So oil companies may be doing well, but that should be a good thing. After all, don't we all depend on them? It's when they are not doing well and we all need fuel that I really worry.
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 8:12:54 PM
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blessedinnyc
Posts: 1816
Joined: 10/12/2007
Status: offline
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quote:
ORIGINAL: Sophie11
Wrong. They may be making a lot, but so are many other companies. And though you ignored my comment on GE, they are also a big money maker and their profits increased almost 30% between 2005 and 2007.
Gaaah. The reason I can't comment on GE is that I'm a registered broker and my firm doesn't want me commenting on specific securities or even mentioning the company I work for by name. I really wish I could talk about GE.
quote:
Exxon, on the other hand, only had a 9% increase in profits. So oil companies may be doing well, but that should be a good thing. After all, don't we all depend on them? It's when they are not doing well and we all need fuel that I really worry.
I don't mind Big Oil's profits. Heck, I own a lot of stock in an integrated oil company, and roughly 40% of my retirement portfolio is in energy, so I actually support these profits, rather than oppose them.
However, I do have a problem with people claiming that there's a conspiracy to scare people into renewable energy. I think the first thing we need to ask is who has the power and resources to run such a conspiracy, and then who has the resources to stop it?
The world's five largest Western integrated oil companies are worth about $1 Trillion- triple that number if you want to count refiners and pure oil producers. The total amount of money invested in renewables is maybe $200 Billion. Who has more money to run a PR campaign?
< Message edited by blessedinnyc -- 6/15/2008 2:48:23 PM >
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RE: Oil hits $135/barrel- what does this mean for the e... - 6/14/2008 8:22:15 PM
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Sophie11
Posts: 750
Joined: 1/24/2008
Status: offline
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Ok, I get ya. And maybe I had you pegged a little wrong on this issue, because I agree with a lot of what you said in the previous post. Still, my issue is that though it may be a good idea to invest in alternative energy, right now at the moment this country is completely dependant on oil. We need it for basically everthing. So even though we should start looking into other energy sources, we should not throw the economy in the gutter to do so. And although there may be new hybrid vehicles and it is possible to use solar and wind energy to power your home needs, the cost of doing so is astronomical and most definitely not affordable to the average person or family. We need to gradually make the change to other source of fuel, not try to do it all in big hurry. In the meantime, we just need to make sure the oil we do know is available is being tapped into so that we can continue to afford it unt | | | |
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