$100/barrel oil on the horizon

[unreconstructed]

Speculation indeed is driving a large part of the run up in price in oil, although I don't know that the speculation aspect can be attributed to Washington D.C. However, the interference in the markets by governments certainly causes unpredictable reactions in the market.

Our federal government steals from the middle class through direct overtaxation and indirect taxation the later being a nifty little slight of hand scheme called fiat money. Whoever is in the food chain first makes money off of all that printing press money and the rest of us loose purchasing power. Ever wonder why the government and not a "disinterested third party" tells us what rate of inflation is?

 

[riptides]

Our federal government steals from the middle class through direct overtaxation and indirect taxation the later being a nifty little slight of hand scheme called fiat money. Whoever is in the food chain first makes money off of all that printing press money and the rest of us loose purchasing power. Ever wonder why the government and not a "disinterested third party" tells us what rate of inflation is?

They have done a pretty good job at making the country prosper for the last 200 years or so, thank you. And last I checked, the dollar still drove world currency markets, thank you again. One can play by their rules and still be fortunate enough to take risk and enjoy great reward. Fail and try again. I don't think too many other countries in the world afford that kind of oppertunity. Thank you, again.

My driving habits just changed last week. My company car got yanked (an on again, off again 10 year, priv.) All personal miles now, reported to the IRS directly. Hmmm, thank you again. Meanwhile, Exxon/Mobile gets my business every morning at 4am for a tankfull. Ouch. Thank you sir! Many I have another?

And I have not put any diesel in my Tractor for a month. Nor the truck. Nor the RTV.

-Mike Z.

 

[RichNJKubota]

Take a look at this YouTube Video. This is just a tidbit of news.
YouTube - ITV News warns on oil supplies
International Energy Agency
ASPO Association for the Study of Peak Oil & Gas Ireland

For me the evidence is overwhelming that oil supply can not keep up with oil demand. Not just demand but the growth in demand. If you look at production numbers from each country and then oil demand and demand growth for each country and then as a whole - you get a picture of supply not being able to keep up with demand.
There are obviously many factors that go into the pricing of oil but from my point of view the biggest factor today is supply/demand.

 

[unreconstructed]

I will never believe the prosperity in our country is due to government--it is due to private property ownership and hard work by us. We have done this in spite of central planning and the actions of government which hold no accountablitily. Thank you.

What has been achieved in the U.S. cannot be attributed to the political class and bureaucacy. If that were the case, the former Soviet Union would not be the former Soviet Union.

 

[Rara Avis]

World liquids consumption in the IEO2007 reference case increases from 83 million barrels per day in 2004 to 118 million barrels per day in 2030. Two-thirds of the increment is projected for use in the transportation sector.
International Energy Outlook 2007 - Petroleum and Other Liquid Fuels

 

[jayhaitch]

Thank you SkyPup for your erudite explanation of current facts, not opinions. Seems the fundamentals go against the constant rise in price we've been seeing. As the ancient Greeks advised, when confronted with something confusing, ask "Who benefits?" It's pretty obvious.

And what if there is no Peak Oil? What if all this fear mongering is a political ploy by those who benefit from instilling a fear that oil is imminently running out?
What if the earth just continues to produce oil, and it's not old dinosaurs after all?

Stalin And Abiotic Oil (Or How Ruppert's 'Peak Oil' Pile is Gaining Tonnage) March 5, 2005
Stalin And Abiotic Oil (Or How Ruppert's 'Peak Oil' Pile is Gaining Tonnage) March 5, 2005

Abiogenic petroleum origin - Wikipedia, the free encyclopedia
Abiogenic petroleum origin - Wikipedia, the free encyclopedia

 

[jayhaitch]

Unreconstructed: well said! I love this quote: "The government cannot give to the people what it first does not take from the people."

 

[Renze]

What are you folks complaining about ??
Yesterday i payd 1,18 euro for a liter of Diesel !! I filled a tank of 70 liter, for more than 80 euro !!

About towing, here in Europe we convert sprinters to 5th wheel tractors at a CGVW of 8750 kg, which is 19.290 pound...
Other light vans in Europe go to 10 ton, or 22.046 pound.

Our experience is that a 160 hp sprinter uses as much fuel as an 822 Mercedes Atego truck, because it has to run at inefficient revs to squeeze out the power. The Atego cruises at 1400 rpm.

I dont see the Sprinter engine as a solution for towing, even though it might just be cheap.
You'd be better off with the 4 cylinder version of the Cummins, which is used under Iveco and Paccar badge in many European medium sized, heavy duty trucks.

A quick calculation means that a 6.7 liter 350 hp would put out 230 hp as a 4.5 liter 4 cylinder...

 

[SnowRidge]

It should be obvious that there is a finite supply of oil in the ground, and that as we use it up, it becomes depleted. At some point, the world will run out of oil. How close are we? That question depends on who you ask, and what axes the answerer has to grind.

Everybody from the "Black Helicopter" crowd to the most sober academic seems to have a different answer. Some postulate that the world's reserves are actually increasing, and that the increase in oil prices are just a part of some giant shell game. Others take the opposite view and paint a gloomy picture of a world hungry for oil, with declining standards of living for everyone who uses more oil than they can produce. Somewhere in between lies the truth.

There was a recent story that lends credence to the argument that government numbers on oil reserves don't square with reality, and not in a good way. OPEC production quotas are set based upon a member's oil reserves. Have more oil in the ground, and you can pump more oil. It is a recipe for cheating, and that may just be what is happening.

Since the inception of that quota system, OPEC reserves have not dropped to the degree that would be expected consistent with the amount being pumped. In many cases, they have increased in an inexplicable manner, leading some experts to believe that the OPEC figures on its members proven reserves are little more than fiction. In other words, OPEC has a lot less oil left in the ground than its members are claiming. If that is true, world oil production and reserve projections as published by US DOE and others are likely to be considerably optimistic.

In the meantime, the major oil producing states are raking in the money, and petroleum based product and services prices are going up globally. We aren't the only ones feeling the pinch, and this mess is a long way from being over.

Links:

Oil reserves - Wikipedia

Oil price rise causes global shift in wealth - MSNBC

 

[unreconstructed]

Thank you JayHaitch for your kind word.

The concept that oil is not dead dinos I have found fascinating for a while now. As I recollect my early history lessons, it seems the premo minds of the day determined the world to be flat. So.................................