Gas could potentially hit $200 a barrel

[eastcoastS14]

I hope they let bicycles on the highway

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3882663.ece

Iran supply problems add to fears of oil hitting $200 a barrel



Robin Pagnamenta, Energy and Environment Editor and Peter Stiff


The Iranian petroleum industry needs foreign investment and, despite the country’s vast oil and gas reserves, is struggling to maintain production levels, according to industry experts.
Although Iran is Opec’s second-largest exporter, production at the country’s leading oil and gasfields is believed to be falling by as much as 10 per cent annually because of a lack of investment and expertise.
David Kirsch, an oil analyst at PFC Energy in Washington, said: “It’s an ageing oil producer heading into plateauing production, with many fields in decline.
“The Ministry of Petroleum there has said it needs $9 billion [£4.6 billion] a year to invest in its upstream operations, yet the national Government allows it to retain only $3 billion. It is capital-starved.”
Oil prices hit a record $121 a barrel yesterday, after the release of a report by Goldman Sachs which said that a lack of new crude supply growth, combined with soaring global demand, could push oil prices as high as $200 a barrel as part of a “super-spike” over the next two years. Arjun Murti, a Goldman Sachs energy analyst, said in the report: “The possibility of $150 to $200 per barrel seems increasingly likely over the next six to twenty-four months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty."
He said: “The core of our super-spike view has been that a lack of adequate supply growth coupled with price-insulated non-OECD demand growth [is forcing up prices].”
Iran holds the world’s second-largest reserves of oil and natural gas. With Qatar, it shares the world’s largest gasfield, South Pars.
To maintain its present capacity of about four million barrels of crude oil per day — representing about 5 per cent of daily global output — Iran is pinning its hopes on the development of huge new fields and is in talks with big Western oil companies, including Shell and Total. However, those companies are under mounting political pressure from the United States to withdraw from those negotiations.
In the circumstances, Iran is being forced to rely increasingly on the National Iranian Oil Company, which has a reputation for poor project management. Shell said that it had not decided whether to proceed with an investment in the South Pars gasfield, despite a June deadline.
The production challenges in Iran reflect similar problems in countries including Russia, Venezuela, Nigeria and Mexico. Even Saudi Arabia, the world’s largest producer, recently lowered its long-held aim of boosting production to 15 million barrels per day to only 12.5 million.
In Iran, soaring domestic demand for oil and gas — which is growing at 8 per cent annually — has created a previously unthinkable situation, Mr Kirsch said. He said that if Iran could not resolve its production problems, it could become a net importer of oil and gas by 2015.
Most of Iran’s oil and gasfields are concentrated in the southwest of the country and along the Persian Gulf. A lack of export pipelines has led Iran to look towards liquefied natural gas, which can be exported on ships.

[duffman1278]

I heard about this, but I also read on yahoo news that they believe the most we'll hit on gas prices THIS year is like 4.50 for unleaded iirc. Supposedly the oil companies are going to be campaigning because people are getting mad at their record profits, which continue to grow, so they want to "show" that their using the money for research I guess, and such things.

[eastcoastS14]

yeah....I think $200 a barrell would push the prices to like $7 or $9/gallon or something like that....more of the reason why im looking at motorcycles

[flclsteve]

Threads like this scare me fuck what are we sopposed to do with prices that high.

[duffman1278]

It sucks, they say it has alot to do with our weak dollar, which continues to get weaker.

[qwikspool]

that would suck if the prices goes up some more.
that means more budgeting.

[HyperTek]

aint no help that im currently unemployed and moving to the boonies where id actually want to get a job out of city.. fawk!!!

[180sExy]

Bikes FTW!!!!!!!!

[Antihero983]

hmm....looks like i wont be replacing the corolla after all.....

time for a bike.

[LeftNutOfGowd]

pedal power time lol

[WanganRunner]

I'm glad I ride an electric train to work, lol.


Other than getting to the train station (3 min drive or scooter ride), my commute is gasoline-free.

[SimpleS14]

Interesting tidbit....i can't see Iran becoming an importer..that is just unheard of..and the U.S. is just being stubborn. They know Iran needs the FDI and is just worried that Iran will push to have oil traded on something else other than the dollar. I guess all I can do is ride the storm and change my spending habits.

I'm glad I ride an electric train to work, lol.


Other than getting to the train station (3 min drive or scooter ride), my commute is gasoline-free.


Interesting, so where do you live? Ball$ton? Fairfax?

[WanganRunner]

Interesting, so where do you live? Ball? Fairfax?


I own a townhouse in MD. Specifically Kentlands (Gaithersburg/N. Potomac)

[TheWolf]

Iran claims holocaust was hoax, jews are evil, USA is evil, killing anyone who doesn't agree is ok and is now having problems acquiring corporate long term financing of projects. Surprise.

Iran will be an importer just like venezuela if demand and prices stay the same. Remember gas is .65 cents in many of these countries because their gov't uses that as a welfare for the poor. Both countries will go broke doing that in 5 years so this is a useless side story.

[98s14inaz]

We had a story in Arizona last night on the news. People in the border towns in the US are driving over the Mexican border to buy diesel because it costs 50% less than the $4.00 a gallon they are paying here in the states. It is such a fucking scam.

[jackjack]

i'm not the least bit surprised. i mean seriously........... is anyone?

i hate this crap. i'm using anywhere from 50-100 bucks a week on gas. i'm going to go look at bikes this weekend. i see more and more bikes/scooters on the road now.

[just1pepsi]

Yep, 300/ month to drive to work right now, and when gas hits 4+ It will be more like 400+/month.. CRAZY.

[pwhitersxs]

This is what happens when people are greedy and oil is used to pay for the war. Why complain though? It's only going to get worse. Remember to keep the glass half full until riots break out. I wonder how long the government will keep propaganda flowing to media outlets about gas to just blame it on foreign countries. I also wonder how many people in government are invested in oil companies. I find it funny how the big oil companies are pulling in massive profits and yet the price keeps going up. All they do is keep blaming other countries. Sounds a little too strange to me.

[EDacIouSX]

Fuck man, need to start drilling in alaska i swear....

[jackjack]

just heard on the radio.......... Bush wants another 200 billion for the war............ GROOVEY.

[s14_legend]

i think we will all switch to bikes...zilvia bike squad here we come

[180sExy]

Zilvia Biker Boyz CHEYAH!!!
Shit I'm gonna see about getting a bike this month! I'm already getting my 240 up an running an now gas might hit 4 bucks a gallon SHIT!!!! Time for my R6!

[drift925]

So what that article is saying is that Iran needs help extracting and supplying the oil due to old and ineffiecent procedures? So theyre trying to get help but we refuse to help?

[!Zar!]

Already riding my bike.

haha.

Shit. I'm pimping women on my bike now.

Need to raise their hourly prices also...

[just1pepsi]

So what that article is saying is that Iran needs help extracting and supplying the oil due to old and ineffiecent procedures? So theyre trying to get help but we refuse to help?

Sounds about right.

Oil is what this world runs on and thats why the world is so screwed up.

[drift925]

Sounds about right.

Oil is what this world runs on and thats why the world is so screwed up.

Its all a power game, and all countries have weapons of mass destructive so we dont want to start any kind of conflict. I'm glad we're not stupid enough to do shit like that. Since we all can't agree on certain terms we all refuse to help out Iran. We've been fucked since we were born though, its human nature to want to dominate.

[s14_legend]

pimpin' is just easier with a bike...not to mention parking

Already riding my bike.

haha.

Shit. I'm pimping women on my bike now.

Need to raise their hourly prices also...

[mRclARK1]

Good thing I'm in shape. More walking coming my way...

[Andrew Bohan]

zilvia bike squad started last summer

still going strong

in protest to gas prices, ride a bike to my bbq if you have one

[s14_legend]

good stuff ill ask my homeboi with his hayabusa

zilvia bike squad started last summer

still going strong

in protest to gas prices, ride a bike to my bbq if you have one

[drift925]

zilvia bike squad started last summer

still going strong

in protest to gas prices, ride a bike to my bbq if you have one

Can i come? Id have to bust a forrest gump though if I plan on riding from socal to norcal =( Maybe I can drive to your county and bike to your house? :p

[Andrew Bohan]

sure, that's cool

get socal involed too :naughtyd:

[just1pepsi]

zilvia bike squad started last summer

still going strong

in protest to gas prices, ride a bike to my bbq if you have one
Cool .. thats a long ride for me though.

[Andrew Bohan]

but still possible!

people on other continents have an excuse! not you!

[WanganRunner]

If anyone wants to blame someone for high gas prices, blame world commodities traders. The oil companies, governments, and gas station owners actually have very little to do with determining how much we all pay at the pump.

Sure the US gov't can lower the gas tax, but it's extremely low already by world standards.

At any rate, high prices at the pump are the result of traders bidding up futures contracts, nothing more and nothing less. If you think oil will continue to rise (as they obviously do), then why not buy some contracts or oil-based derivatives yourself? Yay hedging.

[drift925]

If anyone wants to blame someone for high gas prices, blame world commodities traders. The oil companies, governments, and gas station owners actually have very little to do with determining how much we all pay at the pump.

Sure the US gov't can lower the gas tax, but it's extremely low already by world standards.

At any rate, high prices at the pump are the result of traders bidding up futures contracts, nothing more and nothing less. If you think oil will continue to rise (as they obviously do), then why not buy some contracts or oil-based derivatives yourself? Yay hedging.

I still think its all about us non-3rd world countries trying to dominate a worldwide used resource. Whatever country has that has an overall huge advantage. But if the country itself is too ancient to harness any of it, whats the point?

[The ROMAN]

I hear different reasons for oil prices everyday. Oil speculation, lack of new refineries, weakening dollar, oil companies/government controlling supply, storms, wind, air, on and on. I don't know which is the truth, but I know I'm getting angry.

And in predicted response to the "it's $8 in other countries", well they get the 60-80mpg diesel cars while we aren't allowed to have them because of our strict emissions laws. It makes no sense to me, since most emissions come from industrial plants and Mexico, not cars (Los Angles being an exception).

[WanganRunner]

I hear different reasons for oil prices everyday. Oil speculation, lack of new refineries, weakening dollar, oil companies/government controlling supply, storms, wind, air, on and on. I don't know which is the truth, but I know I'm getting angry.

And in predicted response to the "it's $8 in other countries", well they get the 60-80mpg diesel cars while we aren't allowed to have them because of our strict emissions laws. It makes no sense to me, since most emissions come from industrial plants and Mexico, not cars (Los Angles being an exception).


A.) Oh no, the reason IS oil future speculation, it's just that the speculation occurs on the upside BECAUSE of speculators gambling on a continued lack of supply, political instability, refining capacity, et cetera.

B.) Gas is $8 in the Netherlands because it has a 100% tax. All nations that have to purchase their gas wholesale (i.e. not Venezuela or OPEC nations) pay about the same price for gas, they just tax it differently. We pay about the same for gas that Europe or Japan does, but they tax the shit out of it so prices at the pump are way higher.


Personally, I'd love to see a $5/gallon gas tax and then a corresponding break in income taxes to like maybe 5% or less of income. Taxing consumption seems like a much sounder strategy from a motivation standpoint than does taxing production, IMO.

[eastcoastS14]

time for negotiations with venezuela lol

but seriously I did a report on world oil for a poli sci class and when I was doing my research I found some stories about the fact that it been discovered that Africa has some of the purest oil in the world, which would meen minimum refining and it has a lot of it...sources estimate that they might have one of the biggest reserves in the world, the problem is that Africa doesnt have the money to drill its own oil and that so much of the continent is in a constant state of war that its almost impossible to safely extract it. The report also said that since the discovery the words "Africa" and "national security" showed up together in homeland security reports....and there have been talks within the whitehouse about creating military bases in Africa to "lend a hand in the conflicts"....and offered to support certain leaders and give them weapons vouchers...Ill see if I can dig up the source later, cause Im at work...but it was 100% legitimate not some conspiracy sight or left wing website...I wouldnt be suprised if we start looking to other countries or find a reason to create a greater military presence in Africa in the near future, from what Ive read the US is also seriously considering this to shift away from relying on a resource that is controlled by the middle east

[2ilvia]

how to make gas cheaper:
1. turn off your brain
2. support the wars
3. support population control

if i was the govt. - hypothetically speaking, i would invade a country with oil and take control of the supply, i would spike the price and bring my citizens to their knees, even the ones against my war, then i would invade another country and drop the price, wahlah the people support me, so i take over teh world

[spoolandslide]

It sucks, they say it has alot to do with our weak dollar, which continues to get weaker.

the only thing we have the power to do is vote

even though it is cliche and kinda gay, your vote does matter. so vote for a strong democratic cantidate who is smpathetic to the needs of the american lower and middle class

dont let race stand in the way
but do let gender, not even sigmond froyd could figure out whats going on in a womens brain

[kandyflip445]

Who do we have to kill to get the prices down? Seriously? lol

[s14_legend]

gas price yet up again....im afraid of summer

[ESmorz]

gas price yet up again....im afraid of summer

I'm predicting that the official start of the summer travel season will bring a drop in gas prices or at least a temporary halt in it's rise.

[steve shadows]

BULL SHIT

First of all it's OIL NOT gas that will hit 200 dollars a barrell.

Second if it even sees 150 it's not the world that is collapsing (although it is shuttering) it is the US dollar that is weakening.

That is a majority internal dependent variable.

consequently -

Supply and Demand.

When Supply becomes so expensive it becomes nearly unfeasible, then demand will change adjust or drop.

This means the pocket books of the Iranians will drop as well.

Couple that with obliterating them with air strikes if they fully nationalize their oil supply

and you have a pretty good run of leverage of what is really going on.

I am sick of people just quoting Left wing European economists who WANT to see MASSIVE PANIC in the US market.

Watch Bloomberg, watch for a temporary revival of the dollar and and an increase in consumer confidence over time.

It's not the end of the world, but it does play directly into the hands of the Left wing in the world if people believe that is indeed the case.

politics and economics are synonymous start learning that.

Even though the Iranians might not like us (at the top governmental level) they still need money and outside business. They cannot sell oil soles to domestic buyers. They would fail economically in a heart beat. Have some confidence in America and the west leveraging business and policy and even military in asserting the positive of global stability in this respect.

Every article or posting about 200 dollar oil, makes the middle east more money, causes panic, puts money into opec and deepens the pockets of the MNCs that broker the oil deals.

Get to work thinking America, start turning your brains back on. This isn’t over, not even close

I'm glad I ride an electric train to work, lol.


Other than getting to the train station (3 min drive or scooter ride), my commute is gasoline-free.

DC is legit when it comes to public haha, I love their trains

[LeftNutOfGowd]

We had a story in Arizona last night on the news. People in the border towns in the US are driving over the Mexican border to buy diesel because it costs 50% less than the $4.00 a gallon they are paying here in the states. It is such a fucking scam.


HAHAHA i saw that on CNN like two weeks ago lol. But now border potrol stoped them and told them they cant fill up passed 100 gallons. I agree it is such a F**KING SCAM.

THIS IS WHAT I SAY TO OUR GOVERMENT AND THERE HIGH GAS PRICES...

:fawkd: :fawkd: :fawkd: :fawkd: :fawkd: :fawkd: :fawkd: :fawkd: :fawkd: :fawkd:

[DUFFM4N]

hydrogen car sounds nice right about now

[WanganRunner]

hydrogen car sounds nice right about now


Screw that, just go full electric. Ultimately a hydrogen car is just an electric car that generates power onboard rather than storing it in a battery anyway, so why even bother?

Generate your electricity via more efficient means offboard and then just run a battery on the car, i.e. the Tesla Roadster.

Sure the current battery technology is clunky, but if we focus on improving that then we can run a nation of clean electric vehicles powered by the enormous quantity of coal-generated electricity that we ALREADY HAVE and that relies on no foreign power. Viva domestic energy.