Oil Down...Again

Oil is below $120 a barrel. I’m slowly beginning to believe the air is finally coming out of the oil bubble. Dare I predict $75 a barrel before it’s all over?

biz.yahoo.com/ap/080804/oil_prices.html?.v=18

Gas is also down, but not at the same rate.

In Germany gas has dropped more than 82 cents a gallon (US currency…US gallons) in the last four weeks. Four weeks ago gas was selling at 1.60 Euro a litre (3.8 litres to the gallon), right now it’s 1.46 Euro to the gallon. The exchange rate is right around 1.55 dollars to 1 Euro…it was closer to 1.60/1 four weeks ago.

There is some predictions of about $80 range and that is the lowest I have seen. Also Bio-Crude is starting to come on-line. Although it is only 7,000 gallons, it is a start at finding alternative oil supplies:

                                        **The Beginning of the End of $4.00+ Fuel**

Monday July 21, 11:17 am ET
*
Sustainable Power Corp. Delivers the First 7,000 Gallons of Biocrude to Its New Strategic Partner, Envirocompanies, Inc., for Blending and Processing; Production and Initial Sale a Significant Milestone for Sustainable Power Corp.*

BAYTOWN, TX–(MARKET WIRE)–Jul 21, 2008 – Sustainable Power Corp. (Other OTC:SSTP.PK - News) is pleased to announce today that it has delivered the first 7,000 gallons of biocrude to its new strategic partner, Envirocompanies, Inc., for blending and processing into BG100 biogas, jet fuel, gasoline, diesel and marine fuel.

This event signifies a major company milestone for Sustainable Power Corp. The delivery of the first 7,000 gallons marks the first official sale of SSTP’s revolutionary biocrude. Sustainable Power and Envirocompanies are utilizing AmSpec Service, LLC to perform the quality control analysis.

Full Story

There are also several other sources of Bio-Crude that are going to be coming on-line soon. I foresee a significant percentage of oil coming from these sources (especially the algae and bacteria based processes) in a couple of years.

If the oil and gas companies are successful in extracting natural gas hydrates, we may see $10 per barrel petroleum yet again:

searchanddiscovery.net/documents/abstracts/2004hedberg_vancouver/extended/dallimore/dallimore.htm

Competition and all that. Oil reserved for transportation and natural gas and coal used for petrochemicals and electric generation (along with nuke).

The photo in the following article may be vaguely familiar to folks who watch “Ice Road Truckers”. For whatever reason, the current batch of television programs were produced in Canada. And this location (Mallik) is one of the featured places in the current series.

soundwaves.usgs.gov/2002/04/

The article above is a little old, but there are 2007 articles around the internet. This one had a nice picture.

Apparently there also are natural gas hydrates (solid form) on the ocean floor. Gas is also suspended in the ocean below 1000 meters or so. If you do an internet search, you might have to use the word “methane” [which is what natural gas is, mostly].

We’re looking at $118 a barrel now.

And all this just on the THREAT of the U.S. going after its own oil. When we start to do it, the bottom will drop out. Drill here, drill now…

Unfortunately:

     http://media.townhall.com/Townhall/Car/b/sst080608dAPR.jpg

As i said in another thread. the leader of opec. said oil should be at $70 a barrel now. its only the speculators keeping it high

:rotfl: Thank you! I needed a good belly laugh!

I saw another cartoon today, but it is of a major candidate, so I can’t show it. Suffice to say it had a guy with a large shield marked “charisma” and a very tiny sword…the scabbard was marked “accomplishments.” :smiley:

Oil is now at $92 a barrel, even after IKE, in fact, IKE only created a minor blip in the steady decline of oil in the last few months. The oil bubble has popped…I say oil settles around $75 a barrel.

i’m betting that oil prices will come down more this winter, then slowly go back up. that spike we had in this summer was unsustainable, it drove demand way down.

hopefully we’ll learn to use natural gas powered vehicles to keep demand down. there is plenty of natural gas in beneath us.

I am also expecting more algae based bio-fuels to come on-line in the next year or so. These are completely comparable with current fuels (i.e. Gasoline, Diesel, Jetfuel, and even Crude Oil).

Shocking.

The oil price is going down without any government intervention … even in the face of Hurricane Ike.

The free market economics system does work.

The Politburo will not like you saying that.:rolleyes: Please report to the nearest “reeducation camp” :cool:

This just in from the Christian Science Monitor. … Another reason why the price of oil is down … AGAIN!

I’ve posted a link a couple of paragraphs to the really long article. The rest of the article criticizes drilling because of possible pollution. There are two parts to the pollution aspect. One is to recover the fracking chemicals that are added to the several million gallons of water used to fracture the shale to release the natural gas (or to minimize their use) to prevent them from getting into local aquifers and water sources.

[They have really accurate “horizontal drilling” … the drill pipe turns 90 degrees and goes horizontal for a mile or so … and then they pump in a few million gallons of water at 10,000 psi to fracture the tight shale. Then they remove the water which brings with it the chemicals as well as salt from underground salt deposits. And all of that stuff in the water has to be removed.]

The other aspect is to include in the land lease to the natural gas driller/ landsman two provisions: water testing before and after AND obligation of the oil and gas folks to protect and provide drinking water supply to the landowner and neighbors. The knowledge base and the technology are there … they just need to be included in the terms and conditions and “addendums”.

If anyone is really interested in the details, visit www.pagaslease.com


features.csmonitor.com/environment/2008/09/17/controversial-path-to-possible-glut-of-natural-gas/

Water and chemicals injected at high pressure can extract more gas – and possibly pollute drinking water.

By Mark Clayton| Staff writer of The Christian Science Monitor/ September 17, 2008 edition

After decades of declining US natural-gas production, an advanced drilling system so powerful it fractures rock with high-pressure fluid is opening up vast shale-gas deposits.

Instead of falling, US gas production is rising, with up to 118 years’ worth of “unconventional” natural gas reserves in 21 huge shale basins, an industry study in July reported. Such reserves could make the nation more energy self-sufficient and provide more of a cleaner “bridge fuel” to help meet carbon-reduction goals urged by environmentalists.

Shale gas reserves have a powerful economic lure. Companies, states, and landowners could all reap a windfall in the tens of billions. Some also predict lower heating costs for residential gas users as production increases.

Last i heard oil was about $96 u.s a barrel. which as we all know is a big drop. It has been falling steadily for more than a month now. It’s gone from a high of about $150 u.s a barrel to $96 u.s a barrel.(not exact figures but close enough). But here in Australia the price of fuel has only gone down about .10 cents a litre. and that was when the fuel dropped from about $150 a barrel to about $141 a barrel. since then…nothing. I know Australians have always been taken for a ride when it came to fuel prices. but still at least the prices should come down. I was wondering has the price of fuel gone down any in the u.s since the drop? I like how the oil companies try and talk the price up though. first off when the russian/georgian conflict started. they said it would rise but it still kept on falling. then opec said they were going to cut production. but it still kept on falling. then ike, came along and they were talking up the oil prices saying that ike will cause high demand… but they were wrong. even the bush administration, an administration that is rightly or wrongly accused of being in the oil companies pocket has told the oil companies not to keep fuel prices high or over priced. But our government won’t they just get way too much money off the fuel pumps. to give an idea of how much we pay in fuel taxes. we pay around $1.56 au a litre.that’s roughly $6.25 au a u.s gallon. But before tax. we actually pay less for fuel than the u.s
And for my own sake i wont get started on diesel prices.

The disconnect between the price of oil and the price of gasoline is caused by trading in futures. No one but the oil companies know what was paid for the oil currently being refined. The price for crude we are seeing is probably for oil that is still in the ground which won’t be pumped for months.

Oil is heading back toward $100. The world’s central banks are pumping up the money supply; something normally viewed as inflationary. But on the other hand, conditions threaten a staggering destruction of wealth (and much has already been destroyed) that could potentially be deflationary in the long run.

Rather looks, at this point, like anything at all could happen. Guess this is a pretty fair demonstration of the fact that economies are more delicate than is commonly supposed, and that a great deal depends on expectations of stability. Money is running feverishly from one place to another, and could rush into commodities again; something that seems to be happening.

Meanwhile, our expectation that things like oil will go to an “intrinsic” valuation; that is to say, what its value really is to economies balanced against the actual and potential supply, may be frustrated for some time.

Can you provide links from legit sources like the Oil & Gas Journal? New processes to get the more difficult oil are expensive. Some may be less costly than some alternative energy sources, but ten dollars a barrel? I think not.

  • Kathie :bowdown:

To extract the methane hydrates from the ocean is going to take some new research.

Oil & Gas Journal doesn’t do research as far as I know.

Maybe you know more about which journals publish basic research in the subject area.

The reason I brought up the issue is that the hydrates and the methane dissolved in the ocean is that there are known to be large quantities … just waiting for someone to find a way to extract and ship them to market.

What we need is a genius … someone like Hall who turned aluminum from a rare and valuable metal to a metal that we use for plebian uses such as soda cans.

Or another Fischer-Tropsch.

Or another Wright Brothers.

Or a Tesla who invented things that we still haven’t figured out.

So … put on your thinking caps, friends. There is a method out there … just waiting for you all to put your name on it.

The Oil & Gas Journal publishes news on research and they often include the economics of processes. For example recently, August 11, 2008, they had an article on using the heat from nuclear reactors to get oil from shale:

“Technological advances in producing and refining liquid fuels in situ using high-temperature heat from nuclear reactors can resolve two major problems—dependence on oil from unstable areas of the world and greenhouse gas emissions—says MIT nuclear engineer Charles W. Forsberg.”

It is an interesting concept.

  • Kathie :bowdown:
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