Oil 'could soon reach $100' - Mercedes-Benz Forum

Reply
 
LinkBack Thread Tools Display Modes
post #1 of 16 (permalink) Old 11-13-2008, 01:48 AM Thread Starter
CH4S Artist
 
Teutone's Avatar
 
Date registered: Sep 2004
Vehicle: 1985 500SEC, 1991 190E 2.6.
Location: Los Angeles / Hannover Germany
Posts: 33,556
Mentioned: 11 Post(s)
Quoted: 956 Post(s)
Lifetime Premium Member
(Thread Starter)
Oil 'could soon reach $100'

Business

Oil 'could soon reach $100'

Investment into oil projects has slowed as a result of the global economic crisis [EPA]

The cost of a barrel of oil could soon head towards $100 because crude reserves cannot be exploited fast enough to keep pace with global demand, the International Energy Agency has said.

Energy companies also face a challenge in meeting the world's energy needs over the next 30 years, the IEA report, released on Wednesday, said.

"Current trends in energy supply and consumption are patently unsustainable - environmentally, economically and socially - they can and must be altered," Nobuo Tanaka, the agency's executive director, said.

"While market imbalances will feed instability, the era of cheap oil is over."

Commenting on the IEA report, Dan Lewis, research director of the Economic Research Council, a London think-tank, told Al Jazeera that an "oil crunch" is looming as result of oil exploitation projects being shelved amid the current global economic crisis.

"This is fascinating, because what we have seen with the global economic crisis is that while demand for energy has dropped off and oil prices have fallen, investment has dropped off too," he said.

"That really matters in the oil industry, because the gap between geological discovery from that investment and bringing it to market is 10 years. So ironically, we are getting closer to that 'oil crunch' simply because of the economic crisis that we are in now."

Oil prices fall

The IEA's warning on unsustainable pace of global demand came on a day that oil in US markets actually fell by four per cent to below $57 a barrel.

At one point, US crude fell to $56.35 a barrel, its lowest price since March 20, 2007.

London Brent crude traded down $2.50, to $53.21 a barrel.

A barrel of oil has dropped about 61 per cent in value from July, when it was trading at over $147 a barrel.

The price fall came as US government reduced its oil demand growth forecast in response to the weakening global economy.

Demand in the US, the world's biggest consumer of oil, was expected to fall by more than one million bpd for the first time since 1980 this year, the US Energy Information Administration said.

IEA forecast

Incidentally, the IEA recently cut its own forecast for 2008 world oil demand growth by 440,000 barrels.

The body may make further cuts to the demand growth forecast in its next oil market report, which is due on Thursday, Tanaka said on Wednesday.

"We are likely to cut demand ... because the International Monetary Fund changed its projections on the [condition of the] world economy very dramatically," he said.

With both demand and prices falling, the Organisation of the Petroleum Exporting Countries said on Wednesday that its member countries may decide on an oil-production cut by the end of the month.

"If the prices continue their decline, most probably Opec will have to take a further decision on a cut in supply," Chakib Khelil, Opec's president, told the Reuters news agency.

Source: Al Jazeera and agencies
Teutone is offline  
Sponsored Links
Advertisement
 
post #2 of 16 (permalink) Old 11-13-2008, 05:02 AM
~BANNED~
 
Zedd's Avatar
 
Date registered: Feb 2004
Vehicle: 82 300D VNT, 80 240D 3.0T
Location: Denver
Posts: 3,926
Mentioned: 0 Post(s)
Quoted: 1 Post(s)
Oil was well over $100 and we survived quite well. I fail to see the fear of oil reaching an arbitrary amount like $100 and why people think we should panic when it does get there.

We NEED high fuel prices. Its the ONLY thing that will make people want to reduce their consumption.

Last edited by Zedd; 11-13-2008 at 12:06 PM.
Zedd is offline  
post #3 of 16 (permalink) Old 11-13-2008, 06:55 AM
Will Moderate For Cigars
 
cmitch's Avatar
 
Date registered: Apr 2005
Vehicle: 2002 ML320, 2005 S430 4MATIC, 2010 F150 Crew Cab
Location: City on the TN River
Posts: 10,691
Mentioned: 3 Post(s)
Quoted: 204 Post(s)
Lifetime Premium Member
Quote:
Originally Posted by Zedd View Post
Oil was well over $100 and we survived quite well. I fail to see the fear of oil reaching and arbitrary amount like $100 and why people think we should panic when it does get there.

We NEED high fuel prices. Its the ONLY thing that will make people want to reduce their consumption.
We need high food prices. It's the only thing that will make people reduce consumption and control obesity.
We need high durable goods prices. It is the only thing that will encourage conservation and slow the disposal of waste.
We need high natural gas prices. It is the only thing that will encourage people to cut their thermostats down to 62º in the winter.

Can you see how utterly ridiculous your 'solution' sounds? WTF do you think helped precipitate the housing crisis? Ballooning interest rates coupled with those who made the choice between gassing up their car to get to work or pay their mortgage caused it. Reasonably priced oil is the key to a good economy. You would propose the continued wrecking of our economic future to achieve one end result, which will occur ANYWAY, because the market will demand it for other reasons besides price, one being ENERGY INDEPENDENCE from despots like Chavez.

2005 S430 4Matic 'Morton' W220.183 • 722.671 Rest in Peace

Bells and whistles are thorns and thistles.
cmitch is offline  
post #4 of 16 (permalink) Old 11-13-2008, 07:00 AM
Surely A Large Human
 
Qubes's Avatar
 
Date registered: Jun 2006
Vehicle: '08 C219
Location: Between Earth and Mars
Posts: 34,252
Mentioned: 2 Post(s)
Quoted: 493 Post(s)
Lifetime Premium Member
@Zedd.... That is pretty ignorant. I gotta say. I take issue with that mindset, every part about it. We've shown time and time and time again that oil and gasoline prices have nothing to do with consumption, nothing to do with actual supply and actual demand. Oil prices are driven entirely by speculative investors, and when they become disinterested in the commodity, its price plummets. Contrary to the alarmist hyperbole cited above, there are no current issues meeting global demand with existing production. This 10 year claim of finding new oil to getting it into cars is not a universal truth. I guarantee oil men in Texas aren't waiting 10 years to get oil they find into production - their timeframes can be measured in weeks, maybe months.

As long as oil companies have the lobbying clout they do, and $14 billion a quarter of profit buys a lot of lobbying power, nothing will change. Why should we the people be punished (vis a vis high gas prices) because our government has been bought and paid for by entities who do not have the public's best interests at heart - like our elected officials are supposed to.
Qubes is offline  
post #5 of 16 (permalink) Old 11-13-2008, 07:51 AM
~BANNED~
 
Zedd's Avatar
 
Date registered: Feb 2004
Vehicle: 82 300D VNT, 80 240D 3.0T
Location: Denver
Posts: 3,926
Mentioned: 0 Post(s)
Quoted: 1 Post(s)
Quote:
Originally Posted by cmitch View Post
WTF do you think helped precipitate the housing crisis? Ballooning interest rates coupled with those who made the choice between gassing up their car to get to work or pay their mortgage caused it.
No, it was caused by a bunch of idiots buying a house they can't afford and buying a 15mpg SUV to drive one person to/from work.

If you have to choose between paying the mortgage and filling the gas tank, you're living well outside your means and you seriously need to reevaluate your priorities.

Quote:
Originally Posted by QBNCGAR View Post
We've shown time and time and time again that oil and gasoline prices have nothing to do with consumption
Now that is pure ignorance. Obviously you didn't notice that national oil consumption was down more than 2 million barrels per day at the peak of the gas prices. You didn't notice the collapse of SUV and pickup sales? The H2/H3 Hummer division nearly going out of business? Fewer people on the road? The increase in people buying/riding bicycles? People paying $4000+ for worn out Geo Metros? Weak businesses closing because they can't continue to make their meager profit due to delivery/shipping costs?

Did you notice now that gas is back below $2, people are flocking back to their gluttonous SUVs?

Oil and gas prices have a HUGE influence on people and their consumption habits.

Last edited by Zedd; 11-13-2008 at 07:53 AM.
Zedd is offline  
post #6 of 16 (permalink) Old 11-13-2008, 07:58 AM
~BANNED~
 
Jakarta Expat's Avatar
 
Date registered: Aug 2006
Vehicle: PM me to Join the Expat Muslims for Obama Club........
Location: Jakarta, Indonesia
Posts: 17,697
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Jakarta Expat is offline  
post #7 of 16 (permalink) Old 11-13-2008, 08:02 AM
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
Zedd is right!
DP is offline  
post #8 of 16 (permalink) Old 11-13-2008, 08:06 AM
~BANNED~
 
Jakarta Expat's Avatar
 
Date registered: Aug 2006
Vehicle: PM me to Join the Expat Muslims for Obama Club........
Location: Jakarta, Indonesia
Posts: 17,697
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by drewprof View Post
Zedd is right!

But you said Jay was right........
Jakarta Expat is offline  
post #9 of 16 (permalink) Old 11-13-2008, 08:08 AM
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
I am always right
DP is offline  
post #10 of 16 (permalink) Old 11-13-2008, 08:10 AM
~BANNED~
 
Jakarta Expat's Avatar
 
Date registered: Aug 2006
Vehicle: PM me to Join the Expat Muslims for Obama Club........
Location: Jakarta, Indonesia
Posts: 17,697
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by drewprof View Post
I am always right

You stole that quote from Cheney.........
Jakarta Expat is offline  
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Similar Threads
    Topic Author Forum Replies Last Post
    100 $ Oil Teutone Off-Topic 1 01-10-2008 05:53 AM
    Should I get an oil change tomorrow? Or wait til I reach 8,000 km? Rollingstone W126 S,SE,SEC,SEL,SD,SDL Class 1 08-13-2006 04:07 PM
    runs on 100% vegetable oil !!!!!!!!!!!! maci9111 W126 S,SE,SEC,SEL,SD,SDL Class 0 07-06-2006 09:33 AM
    Does 100% synthetic oil look the same as dino oil after, say, 5000 miles? (long) SWH, Suffolk, VA R170 SLK-Class 2 04-08-2001 06:05 AM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome