Double dipping: $100 oil inevitable next year
$5.00 gas not that far off?With oil touching $87 per barrel this week, numerous forecasters are now predicting $100+ per barrel next year. Fortunately, most don't believe that will derail the economic recovery, yet.
Still, as Lutz Kilian, a University of Michigan economist that studies oil shocks told the Financial Times, “You can’t have a global recovery without the oil price recovering as well.”
Ultimately, $100.00 oil is probably inevitable next year, and from there prices only trend higher. Unlike the last time oil hit $100.00 per barrel, thankfully, the US isn't in a housing bubble. Still, how high can prices go before the economy takes a serious hit?
Labels: gas prices
posted by Dahcredyns at
9:36 AM
6 Comments:
What does $100/barrel oil translate to at the pump? I am seeing $2.70 & up here in Tucson.
ZenDude:
You might want to make a trip to the below website for some further info but generally 46-48% of each barrel of oil is refined for gasoline. Also about 25-27% ends up as Distillate or diesel/other stuff. The actual percentages vary depending on the time of year and needs of the public.
The other piece of the puzzle you need to know is how many gallons of oil are in a barrel and that is 42 gallons.
http://tonto.eia.doe.gov/dnav/pet/pet_pnp_pct_dc_nus_pct_m.htm
Hope this helps
Tom G.
Now is the time to buy a hybrid vehicle before we are faced with these high gas prices! Mississippi State University's engineers have been working hard to build an even more efficient hybrid vehicle as part of the EcoCAR Challenge! Not only are hybrids good for the environment, there will also be a lot of money saved by owning one!
http://www.cavs.msstate.edu/projects/ecocar/
OIL -
Here's an interesting read, important and verifiable information :
About 6 months ago, the writer was watching a news program on oil and
one of the Forbes Bros. was the guest. The host said to Forbes, "I am going to
ask you a direct question and I would like a direct answer; how much oil
does the U.S. have in the ground?" Forbes did not miss a beat, he said, "more
than all the Middle East put together." Please read below.
The U. S. Geological Service issued a report in April 2008 that only
scientists and oil men knew was coming, but man was it big. It was a
revised report (hadn't been updated since 1995) on how much oil was in
this area of the western 2/3 of North Dakota , western South Dakota , and extreme eastern Montana ..... check THIS out:
The Bakken is the largest discovery since Alaska 's Prudhoe
Bay, and has the potential to eliminate all American dependence on foreign
oil. The Energy Information Administration (EIA) estimates it at 503 billion
barrels. Even if just 10% of the oil is recoverable... at $107 a barrel,
we're looking at a resource base worth more than $5..3 trillion.
They reported this stunning news: We hav e more oil inside our borders,
than all the other proven reserves on earth. Here are the official estimates:
- 8-times as much oil as Saudi Arabia
- 18-times as much oil as Iraq
- 21-times as much oil as Kuwait
- 22-times as much oil as Iran
- 500-times as much oil as Yemen
- and it's all right here in the Western United States .
HOW can this BE? HOW can we NOT BE extracting this? Because the
environmentalists and others have blocked all efforts to help America
become independent of foreign oil! Again, we are letting a small group of
people dictate our lives and our economy.....WHY?
James Bartis, lead researcher with the study says we've got more oil in
this very compact area than the entire Middle East -more than 2 TRILLION
barrels untapped. That's more than all the proven oil reserves of crude oil in
the world today, reports The Denver Post.
Don't think 'OPEC' will drop its price - even wit h this find? Think
again!
It's all about the competitive marketplace, - it has to. Think OPEC just
might be funding the environmentalists?
Got your attention yet? Now, while you're thinking about it, do this:
Pass this along. If you don't take a little time to do this, then you
should stifle yourself the next time you complain about gas prices - by
doing NOTHING, you forfeit your right to complain.
--------
Now I just wonder what would happen in this country if every one of you
sent this to every one in your address book.
By the way...this is all true. Check it out at the link below!!!
GOOGLE it, or follow this link. It will blow your mind.
http://www.usgs.gov/new sroom/article.asp?ID=1911
Before we all get to excited and giddy over the above post I suggest reading some information on Snoops.com Here is the link.
http://www.snopes.com/politics/gasoline/bakken.asp
Other than that I can't comment since oil is out of my field.
Britt-
If you do some objective research you'll find many non-biased oil men and academic researchers that have essentially called this report nonsense in terms of real world potential.
Most important, this isn't oil. It's shale, and despite new horizontal drilling techniques, most of this 'oil' would be very expensive to extract and to refine, often more expensive than alternative resources.
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