Comments on: $200 a barrel oil? http://polizeros.com/2008/04/30/200-a-barrel-oil/ Musings on politics: anti-war, global warming, peak oil and otherwise Sat, 05 Jul 2008 18:30:01 +0000 http://wordpress.org/?v=abc By: Peter http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152375 Peter Wed, 07 May 2008 07:32:43 +0000 http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152375 These things come in cycles. It's quite likely that we'll get to $200/barrel, but it's just as likely that the oil price will fall sharply later in the cycle. Citigroup has said prices may fall to $40 a barrel within two years. The drilling cost for oil and gas wells has actually fallen slightly over the last two years, and even deepwater rig rates have been flat after jumping five-fold since 2004. Some 65 deepwater rigs are coming on stream over the next two years, compared to 10 from 2002 to 2007. I'm not looking forward to $200/barrel, but the retreat to $40 sounds good... These things come in cycles. It’s quite likely that we’ll get to $200/barrel, but it’s just as likely that the oil price will fall sharply later in the cycle. Citigroup has said prices may fall to $40 a barrel within two years. The drilling cost for oil and gas wells has actually fallen slightly over the last two years, and even deepwater rig rates have been flat after jumping five-fold since 2004. Some 65 deepwater rigs are coming on stream over the next two years, compared to 10 from 2002 to 2007.

I’m not looking forward to $200/barrel, but the retreat to $40 sounds good…

]]> By: DJ http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152240 DJ Thu, 01 May 2008 18:18:24 +0000 http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152240 Eventually higher demand will lead to lower consumption-- in fact it baffles me that no auto manufacturer has yet introduced a car that gets better than 100 mpg. The tech is already market-ready. Why is it relegated to aftermarket add-ons for rich folk? BTW, in many countries, a gallon of gas costs 2 days pay. We're a long way from that kind of pain! Eventually higher demand will lead to lower consumption– in fact it baffles me that no auto manufacturer has yet introduced a car that gets better than 100 mpg. The tech is already market-ready. Why is it relegated to aftermarket add-ons for rich folk?

BTW, in many countries, a gallon of gas costs 2 days pay. We’re a long way from that kind of pain!

]]> By: Bob Morris http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152233 Bob Morris Thu, 01 May 2008 03:08:06 +0000 http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152233 Apparently they think higher demand must always lead to new supply because that's what the theory says. Apparently they think higher demand must always lead to new supply because that’s what the theory says.

]]> By: John http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152231 John Thu, 01 May 2008 00:59:23 +0000 http://polizeros.com/2008/04/30/200-a-barrel-oil/#comment-152231 Are these guys really all morons?? Are these guys really all morons??

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