OIL---you better be sitting down when you read this ! ! At 100$ a barrel you should.

[greengiant]

It really dosent surprise me. I can see very easily the US not wanting to tap into theirs till all the rest in the world is gone. I think its more a strategic thing than any. Gotta have oil to make a military run.........

I've always thought this too! Reminds me of the movie "Waterworld"-whoever has the oil in the end will have everyone else by the balls.

 

[greengiant]

i really wish onshore oil drilling would pick up here. Then i could go back to doing what i love, building huge locations for oil rigs. And if yall do not think we have oil here in WV.a think again. In my area that i oversee the care and state of the roads we have 10 wells that produce 20/bbl a day a piece and that a low production figure. if the Marcellus shale continues like it is i am a very firm believer that we will find a huge oil pay zone in southern WV.a.

From what I understand, under the Marcellus natural gas, are a couple other layers of gas and oil. As was stated in another post, as technology improves, extraction becomes possible. Kind of why my wife's family was getting $12/acre for a gas lease for decades on a property in Bradford County, PA, and now its going for $3-$5K/acre-just the lease.


I just hope we are all around to see it all happen.

 

[Fronty Owner]

i really wish onshore oil drilling would pick up here. Then i could go back to doing what i love, building huge locations for oil rigs. And if yall do not think we have oil here in WV.a think again. In my area that i oversee the care and state of the roads we have 10 wells that produce 20/bbl a day a piece and that a low production figure. if the Marcellus shale continues like it is i am a very firm believer that we will find a huge oil pay zone in southern WV.a.

gas drilling is all fun and games until you blow a few million cubic feet out the blooey line and overshoot your flare pit...

 

[woodbooga]

The thing I don't get is this...

In 1913, when oil energy was an emerging commodity, the US began subsidizing the oil industry with some pretty generous tax breaks which continue to this day.

Obama's talking about extending these investment writeoffs to wind/solar/etc, and closing the budget gap by curtailing oil tax credits. Basically, doing for alternatives what we're currently offering oil.

I'm not a big fan of the current admin., but it seems like Exxon et al. should be on a sustainable footing now after 100 years of subsidies.

 

[mhyme71]

I think it is a few different things that keep us from harvesting our own oil.

First of all i believe that the powers that be in this country, in regards to oil, would never let the price per barrell come to such a low figure. They see the middle east raking cash with a bulldozer and they want to do the same. I think they will wait until oil is absolutely at its highest value and then make it available to consumers. Which in turn would keep their hands deep into the american peoples' pockets as well as the other countries. The powers that be in this country do not give two buckets of steamy hot moose dump about us and our financial struggles.

I also think that it provides a huge amount of leverage for us. If we have an abundance of fuel nobody is going to mess with us. I think it would also help us out with china who we owe like a bazillion trillion dollars too.

Then there is the conspiracy theory that the PTB(powers that be) in this land, are in bed with middle eastern oil tycoons so much that you can smell the camel spit on their weasley, never worked a day in my life, manicured, sissy little girl hands!!

 

[mga]

Then there is the conspiracy theory that the PTB(powers that be) in this land, are in bed with middle eastern oil tycoons

true.

when the problems in Egypt first started, oil speculators ran out and began buying shares of oil, driving the prices up.

they do this because they know that any problems in the ME will make the price of oils rise and some people just want to be on the receiving end of things.

 

[Ambull]

I think it is a few different things that keep us from harvesting our own oil.

First of all i believe that the powers that be in this country, in regards to oil, would never let the price per barrell come to such a low figure. They see the middle east raking cash with a bulldozer and they want to do the same. I think they will wait until oil is absolutely at its highest value and then make it available to consumers. Which in turn would keep their hands deep into the american peoples' pockets as well as the other countries. The powers that be in this country do not give two buckets of steamy hot moose dump about us and our financial struggles.

I also think that it provides a huge amount of leverage for us. If we have an abundance of fuel nobody is going to mess with us. I think it would also help us out with china who we owe like a bazillion trillion dollars too.

Then there is the conspiracy theory that the PTB(powers that be) in this land, are in bed with middle eastern oil tycoons so much that you can smell the camel spit on their weasley, never worked a day in my life, manicured, sissy little girl hands!!

I think that you give the idiots in Washington way too much credit. They only do what they think will get them reelected. One of the problems with a democratic nation is that they only think in the short term.

I don't know how many of you have a regular job, but if you noticed they actually lowered the social security tax rate this year, from 6.5% to 4.5%. With all the publicity of the problems with SS, how in the world is lowering the tax rate going to fix it? Simple. They are only thinking in the short term, and trying to put some extra money in people's pockets. By the time SS implodes, today's politicians will be long gone.

 

[Whitespider]

...they actually lowered the social security tax... They are only thinking in the short term, and trying to put some extra money in people's pockets. By the time SS implodes, today's politicians will be long gone.

Hmmmmm......... Ambull, I don't believe you're seeing the big picture here. By lowering the SS tax rate they effectively increase the amount of the income tax you pay in (not the rates). You don't pay tax on the money you pay into SS, but you pay tax on most all the other money in your paycheck. Sure, you get to keep a bit more, but you have to pay tax on it... and (supposedly) federal revenues increase. It's just further prostitution of the SS system.

 

[Den69RS96]

I definitely think we should get off foreign oil. Let China buy all there oil and then the middle east will have a new enemy and we get the heck out of there. Alot of people think that OPEC is the main reason we pay so much at the pump. While they do contribute to the higher prices by adjusting supply, the main reason is the fact oil is traded on the futures market.

Even if we have enough oil in America, prices are not going to drop much. Investers don't really care where the oil comes from, but only care about supply and demand. So oil is bought and sold for what people think the value is in the future. Thats why prices are much higher in the summer and around holidays. More travel means more demand which means more money to be made. I do believe that regulation will control the price and is needed since this is where most of the greed comes to play. However, many people have retirement accounts that invest in oil, so its a double edge sword. Your IRA's, 401K will def take a beating if the oil market is heavily regulated. Even with oil in America, oil companies will continue to make record profits so don't expect prices to drop.

Alternative energy isn't going to lower prices either. The technology is expensive and the same for profit companies that bring us oil will be delivering the new alternative energy. We have to come to grips that energy regardless of the type isn't going to get cheaper. On the bright side though as long as we produce our own energy, we can tell the middle east and the nut job in South America to pound sand.

 

[TreeClimber57]

when the problems in Egypt first started, oil speculators ran out and began buying shares of oil, driving the prices up.

they do this because they know that any problems in the ME will make the price of oils rise and some people just want to be on the receiving end of things.

Buying shares does squat.. other than drive the stock up.. lower percentage return on dividend (and on paper make company look more valuable - now if you are into selling shares at higher price than you make profit there.. but no impact on oil price itself - that is company you are investing in not the commodity).

It is buying futures that has impact on pricing .. because now you are investing in or buying the actual commodity. I sold some myself in December (or I should say pool I have some money in sold some in December) - made a bit but not a lot (course you have to buy a lot to make a lot and my portion is not that big).

Crude Oil is the most heavily traded commodity on the NYMEX. You can buy long dated futures up to 84 months out. But you have to have a crystal ball for that long. I actually am a small player.. my brother has been doing for a bit and has 3 other guys who do it as a pool.. I simply throw some cash into their pool and let them work it.

But for oil futures, minimum contract is 1,000 bbls or 42,000 gallons.. and I don't have cash to do that alone (so throw in a few dollars and let it do its thing). Most times they make money for me.. have been a few not so good over past 5 years or so.. yesterday dropped $1.42 a bbl

 

[mga]

yea, i should have explained that better. the speculators are banking on more tension in the ME since they think there are going to be more riots and rebellions in other countries.

if we see riots or attempts to over-throw the government in countries like saudi arabia, then you know oil will hit $500 per barrel.

 

[CrappieKeith]

Don'tknow how true this is ,but I understand that we do not have the refineries to handle more oil.

 

[7hpjim]

I've always thought this too! Reminds me of the movie "Waterworld"-whoever has the oil in the end will have everyone else by the balls.

thought that one wuz about DRY LAND, you know, PURE DIRT:laughn:

 

[7hpjim]

Don'tknow how true this is ,but I understand that we do not have the refineries to handle more oil.

suppose thats because we cant build more refineries because of helpful for your own good gov regs

 

[D&B Mack]

altho i have used snopes to check things, they are owned and run by a liberal group and often people have caught mistakes by snopes, either intentional or unintentional.

+1, they were very one-sided during the last pres. campaign.

 

[D&B Mack]

The problem with the shale oil deposits out west and PA , it requires a system called Fracking. Where it has been used the ground water contamination is unbelievable. It has been hushed up pretty well. Look up fracking, there are some very dire results. I just wish to point this out as every time this comes around, the method of procurement is left out. NO I am not a greene, just like to see both sides commented on.

Majority of the fracking problems are BS. There has only been one case of underground contamination which was done by Cabot Oil & Gas. They have since rectified the situation as best could. (They put in a multi-million dollar public water system) There have been other issues of contamination from surface run-off and spilling of the fracking solution once extracted. PA DEP is catching up on it and there are very little incidents anymore, and for the amount of work that is being done, that in-itself is a chore.

 

[chuckwood]

from the oil drum website:

Read about that Bakken formation several years ago. It's not a conventional resource. More costly to get . Wouldn't last that long.

Here's a link to an article about the Bakken formation at a website that is frequented by a lot of oil industry people, it's called "The Oil Drum."

This article is written by a petroleum engineer, and gets into a lot of the technical details.

http://www.theoildrum.com/node/3868

 

[D&B Mack]

Don'tknow how true this is ,but I understand that we do not have the refineries to handle more oil.

This is partially true. The government has not been issuing additional permits for building a refinery. Just like Nuke plants, permit them out of existance.

 

[Fronty Owner]

true.

when the problems in Egypt first started, oil speculators ran out and began buying shares of oil, driving the prices up.

they do this because they know that any problems in the ME will make the price of oils rise and some people just want to be on the receiving end of things.

no, they buy oil so the price will go up, not because the price will go up. The price goes up, the powers that wanna be get more aggressive wanting the power so they can have a piece of that money.

oil prices are a double edged sword for me. I have not been given raises because prices were down. Ive also been given better raises when oil was going up. Yea, oil price hits me in the wallet in two ways. I pay more, but I also get paid more.

 

[ray benson]

Here's a link to an article about the Bakken formation at a website that is frequented by a lot of oil industry people, it's called "The Oil Drum."

This article is written by a petroleum engineer, and gets into a lot of the technical details.

The Oil Drum | The Bakken Formation: How Much Will It Help?

I have checked that site over the last few years. Found it when first searching for Bakken formation info for investment purposes. And again during the BP oilspill fiasco in the gulf.