New oil $$

[trap50]

Just saw on Yahoo a barrel of oil hit $97. I'll bet $5 a gallon soon.

[Chrome Bumper]

Memorial Day weekend.

[Just_learning]

Originally Posted by Chrome Bumper

Memorial Day weekend.

I blame illegal immigration.

[spooner]

$3.51 a gallon here in craig alaska and it has been for over a year.I think we been being gouged for a while up here

[WoundedTuna]

There is a company, Silverado Green Fuel Inc., that claims they can make a replacement for crude oil for under $15/barrel.

Website

Nov. 5th Press Release

Silverado (http://www.silveradogreenfuel.com) turns low-rank coal
(representing half of the U.S.'s coal reserves) into Green Fuel, which can
be commercially produced without releasing carbon dioxide into the
atmosphere, without particle emissions, and without the release of toxic
by-products. The supply of low rank coal in North America represents
centuries of energy resources availability.
Initial production costs are estimated at under US$15 per barrel, on an
oil equivalent energy basis, compared to $90 - $100/barrel crude oil.
Green Fuel is produced without releasing any harmful emissions into the
air, and because low rank coal already has a moisture content of 40%, most
of the water used in Silverado's Green Fuel Technology is actually recycled
from the process itself, and re-used.

I am a little skeptical, but I really hope this is true.

[Just_learning]

Originally Posted by WoundedTuna

There is a company, Silverado Green Fuel Inc., that claims they can make a replacement for crude oil for under $15/barrel.

Website

Nov. 5th Press Release

I am a little skeptical, but I really hope this is true.

This would be a wonderful idea. I highly doubt it will be as efficient as regular petrol. But its nice to hope. However, things like this tend to get squashed. "Breaking our dependence on oil" is a nice catch phrase, but there are many other uses for petroleum and its bi products than consumption by vehicles.

[Chrome Bumper]

Originally Posted by Just_learning

. "Breaking our dependence on oil" is a nice catch phrase, but there are many other uses for petroleum and its bi products than consumption by vehicles.

True, but gasoline and diesel are very safe/compact/convenient sources for vehicles.

[BARCHASER]

I dont think it is going to go up that much near term. Over time, crude oil prices will push it up but maybe not that soon. Oil is a global commodity priced on the basis of world demand/supply, i.e China, India and other growing countries are pushing up demand. Supply isnt what is used to be either and then there is war, terrorism etc.

But gasoline, although impacted by crude prices, is a also a domestic supply/demand price issue. Gas supply is high and demand is flat. The crack spread, which is the term for profit made by oil companies on a bbl of crude, is only 6 bucks at present vs a high of 25-30 bucks last year.

The recent qtrly earnings of Chevron and Exxon were lousy due to the big decrease in crack spread. The stocks of independent oil refiners like Tesoro and Valero got crushed. The economy is weaker which has kept a lid on gasoline demand. We are into the traditional slack season for gasoline demand although a cold winter could increase demand for heating oil which will impact gasoline prices.

The federal govt has been adding to the price of crude by buying oil for the petro reserve. The reserve has a capacity of 400 million bbls and that last I saw it was up to 375 million, so the gov will slow down on oil purchases for the reserve. If we do wind up in a recession, gasoline prices and prob oil too should come down.

The Cat CEO was on TV yesterday and he said demand for Cat products from US long haul truckers is really lousy. Which means biz for the truckers is not great and no doubt their demand for diesel is down.

[Smoked Salmon]

The weak dollar is to blame for most of that oil price. [insert gratuitous political commentary here]

One Canadian dollar will now buy $1.08 US dollars. Too bad that country has junk health care and expensive prescription drugs.

[98ramtough]

I will bet we do not see $5 a gallon in the next 365 days. Anyone wanna take that $20 bet?

Originally Posted by trap50

Just saw on Yahoo a barrel of oil hit $97. I'll bet $5 a gallon soon.

[BARCHASER]

You got that right on the dollar. New rumour, some of the OPEC countries are tired of selling oil and getting back US bucks that keep going down in value. All crude oil in the world is bought/sold in dollars. So if you want to buy oil, first you have to have dollars. Since world consumption is 80 million bbls a day it creates big demand for US bucks and helps support the currency.

But OPEC, particularly the usual suspects Iran and Venezuela, want to replace US bucks with the Euro, petro-euros instead of petro-dollars. It would reduce demand for US bucks, not good. The euro has been strong.

[latesvak]

i heard it is supposed to hit 5 bucks by christmas . thats just the rumor mill talking tho


and 98ramtough . thats a tough call . i bet it will but im poor due to my fishing addiction (no joke), otherwise i would take you up on it



luke

[latesvak]

really all we need to do is build more oil refineries here on our turf . but the people dont want to give up there "new" place for a massive shopping center ....... (side note ) i also think the government has something to do with it too . . damn the man




luke

[backlash442]

Blame Hedge Funds. They can and do manipulate markets all the time. Who do you think bet on oil going up? When they get ready to sell off watch how far and fast it drops. It's really not about supply and demand right now.

[BARCHASER]

I hate to sound like a broken record, but we are running out of cheap, easy to extract, easy to refine sweet, light crude. We are much more reliant on high sulphur, heavy, sour crude. Hard to get out of the ground and really hard to refine. There are only a few refineries in the US that can even refine sour crude.

Heres a good article on the difference in the two.

http://www.econbrowser.com/archives/..._and_sour.html

[1pump]

The stocks of independent oil refiners like Tesoro and Valero got crushed.

Hmmmm.........I walked into the office at work today and a co-worker said "Hey, our stock went up $3 today!"

We work for Valero.