Oil Shock Prediction: $25

OIL SHOCK PREDICTION: $25

Dec. 4 (Bloomberg) – U.S. stocks fell for the first time in three days, pushed down by concern General Motors Corp. may file for bankruptcy and a plunge in energy shares following Merrill Lynch & Co.’s prediction that oil will hit $25 a barrel.
GM lost 16 percent after a person familiar with the matter said the largest U.S. automaker is exploring a reorganization with workers, creditors and lenders. Southwestern Energy Co., EOG Resources Inc. and Exxon Mobil Corp. slumped, sending the Standard & Poor’s 500 Energy Index to a 6.2 percent decline. Apple Inc. slipped 4.7 percent as Nokia Oyj said the global mobile-phone market will shrink 5 percent or more next year.
The S&P 500 lost 2.9 percent to 845.22. The Dow Jones Industrial Average fell 215.45 points, or 2.5 percent, to 8,376.24. Indexes also dropped after the Labor Department said more Americans are collecting jobless benefits than at any time since 1982. Economists estimate a report tomorrow will show the unemployment rate increased to 6.8 percent, a 15-year high.

[/FONT]Gulf Oil CEO says gas could hit $1 next year…**

[/FONT]Oil near 4-year low… **

So, I wonder if that CEO would put his money where his mouth is. (Do you get the pun?) Put… buy puts.

I wonder how dumb some of these people feel, that dumped their bigger vehicles at a loss, and bought little unsafe cracker boxes, all in the name of getting five more mpg. But take heart, it will no doubt go back up one of these days, probably because of a war somewhere.

I guess its good news, but it doesn’t help the movement for drilling here to gain energy independence. A lot of the more advanced methods need a reasonable price for oil to be feasible…

We should work on major solar and windpower projects anyhow and bust the price of oil down to $0 a barrel. Then they would have no more income to finance those terrorist attacks and we would kill two birds with one stone: terrorism and energy dependence.

I wish I had bought that pick up truck.

I bought a small car for gas mileage and I’m not feeling the least “dumb” :smiley: . Honestly, I’m quite certain gas will go back up and I’m REALLY getting good gas mileage now! It used to cost me $65/week in my truck. Now, I’m paying $18…big difference!

Metal prices have gone down quite a bit too.

Good. Oil is profitable at between $25 and $30 dollars a barrel. When it drops below about $18 then there are problems. $100 barrels of oil are only due to greedy oil company execs and the evil greed and manipulations of OPEC.

From my understanding,

when oil goes below $80, its bad for Iran, which can’t make profit under $80 and still provide social services to the people and support its military. This is good.

However, oil below $50, is bad for US oil producers, who can’t make a profit under $50 per barrel. This is bad.

In actuality, the oil producers help cause the economic collapse we’re currently in. Some businesses and home owners, might’ve survived, had gas not gone up to $4.20 per gallon this past summer, which drove the cost of everything else up. Then of course, it came just in time to hurt the tourist industry.

Now, they’re trying to rectify it with below cost oil prices. Too late.

Jim

We shouldn’t worry about whether oil stays profitable or not. Get that solar and windpower going. Lay down solar panels along all the major highways and put up windmills in the midwest which is a massive wind tunnel. With these two projects in place in the next three years we could say goodbye to oil dependence and never have to worry again. What’s more important:corporate profits or the strength of a nation? Given the choice of the two I know which I would prefer. No more fleecing of America through high energy prices.

It will just be the fleecing of America through windmills and solar panels.

But once they are in place they can be regulated to the point of recapturing costs only. After that the wind and sun are free and shame ona anyone who tries to charge for limitless supply of energy given to us by God alone. And I certainly don’t want to be dependent on any oil.

Actually I was watching CBS 60 minutes the other day and one of the Saudi Oil guys was saying that they are working on using technology to harvest solar energy and export it. ITS ON A DESERT FOR CHRIST SAKEQ!!!:smiley:

How do you export something that everyone has access to already?

Oil is free too in that respect, to gain the access to use it as energy is not.

Wind mills can break down, and structure to capture energy from the sun can also break down. Efficiencies can decrease. I’m not saying this type of infrastructure shouldn’t be looked at, it should. There are plenty of areas where we could better use the environment to take use of energy sources, or mitigate any need for energy. But don’t start thinking this will usher in an era of cheap energy. It too is going to come at a cost.

Anyway if we do find a way to produce energy cheaper, we will find a way to use it until cost become a constraint. We can double our computer processing power in a short amount of time, but it really isn’t sufficient. New programs will be written, and people will find new operations to do. I’m guessing in the not too distant pass, thinking of playing an mp3 would seem impossible due to constraints. Well as far as energy is concerned, as it gets cheaper more and more of the developing world will want to use it too, which in turn will increase the demand.

So there might be some repair costs. It will still be cheaper than drilling for a product that will eventually reach and end in supply. And once we have the infrastructure up it will be ours to do with as we please, not another country’s, which can sell it to us to finance their efforts against us.

http___podloc.andomedia.com_dloadTrack.mp3_prm=4204xhttp___audio.cbsnews.com_2008_12_07_audio4653148

we Texans talk a big game but we are really not terrorists at heart, we also have a lot of room to collect wind and solar power, but like the rest of the country, do not have the infrastructure, storage and delivery systems to use it.

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