So, I guess this means when the oil companies and countries have enough money, the price will come down. Right?
Shell CEO says record oil not due to shortage
Oil prices at a record high above $135 a barrel are rising due to market sentiment rather than a shortage of supply, Royal Dutch Shell’s chief executive said on Thursday.
U.S. crude oil hit an all-time peak on Thursday, climbing to $135.09, lifted by concern about long-term supply and a host of predictions of further rises from influential investment banks and investors.
“What we say and what we see is there are no physical shortages,” Shell’s Jeroen van der Veer told Reuters television. He runs the world’s second-largest fully publicly traded oil firm by market value.
“There are no tankers waiting in the Middle East, there are no cars waiting at gasoline stations because they are out of stock. This has to do with psychology in the markets and you cannot forecast psychology”.
His view that there are no shortages chimes with that of other oil producers, such as members of the Organization of the Petroleum Exporting Countries. Others, such as the U.S. government, say supply is tight.
Let’s get something straight. America’s economy runs on oil. The tractors, transfer trucks and trains aren’t running on happiness and sunshine. They’re running on good old fashioned diesel.
I read an argument that high prices are a matter of perception. That paying $4 a gallon is still cheaper than the per gallon expense of Starbucks coffee, etc. That argument is flawed, because increasingly, the costs of those other things are going to rise because of the expense of their production and distribution.
If you make a decent living, and are a hard working American, it is your right to choose to consume as you see fit. However, considering that the average American’s purchasing power is in a free-fall, the basic necessities of life are going to keep most from being able to get by.
Take for example, the recent jump in prices in milk and produce. Or, have you noticed that your local water company is charging you more? School systems are facing budget shortfalls because they’re allocating more to keep their bus fleets operational. Tried shipping something lately? Enjoy those fuel surcharge fees. These examples aren’t on the horizon, this is happening right now. Private and public companies are not going to absorb these new expenses. They’re going to pass them along to you, dear shopper.
If you think I’m a whiny liberal, take this into consideration: The USAF has decided to start testing synthetic fuels in their B1-B supersonic bombers. In other words, the price of fuel is a national security matter, one that is being addressed by the military. Shouldn’t we do our patriotic duty and follow their example?
“ALL of these stories should feed into the reality that USA and Western Governments have done nothing for 40 years to develop energy independence”
depending on your defenition of independence we are able to supply all we need in country now.
I live in an oil producing area and right now over half the wells are turned off. We have huge areas we are not drilling in. These are not the actions of a comodity in short supply.
As for what we can afford to pay and not ruin our economy look at Europe they have been paying $7 + for years.
#18 No, arrogant rude spoiled people who don’t care about the planet, that belongs to all, and relate freedom to driving big vehicles are the problem.
I drive a medium sized European car which is small for American standards… It allows me the freedom to get anywhere I want to… The only difference is I don’t need the freedom to drive a penis extension.
Now, please call me a dumbass liberal… It will only prove the first adjectives I started with…
Worldwide, the output of heavy oil (not including NGL’s and non-conventional) has dropped by 7 mb/d since 2002 (this is subject to interpretation of course). Non-conventional production has picked up most of that.
In a nutshell, production has been “steady” for the last 6 years. Demand has grown however, mainly in NA and developing nations. Like all commodities, competition for the resource has boosted prices. The cost and time to bring on new production capacity (including refining and transportation) is a problem. It takes tens of billions or dollars and about a decade before you really make money – most investors don’t want to do that.
Couple that with political risk in the Middle East, South America, Africa – it adds up to high prices.
#31and #34
I drive my Tahoe not just because I like it, but un like you treehuggers who demand I ride a bike, my job demands it. I am an outside sales rep and I carry over 800lbs of materials with me every day on my sales calls and by the way my tahoe is a flex fuel( I actually like the way it runs on e85 but the mileage trade off is not worth it 14 on E85 vs 21 on reg pump gas )I am all for alternative fuels if they make sense (corn ethanol makes none, use sugar beets)
#34 I care about the planet I’m just not naive enough to get sucked into your liberal bullshit on so called global warming/climate change. I live a modern life and I have no interest in going back to the 1800s horse and buggy as you environmentalist/communists want.
Man is not destroying the planet , but if you believe that you have nothing to feel guilty about and at the same time feel superior about because you care and drive a scooter
if you want to drive a 3 cylinder cracker box enjoy it because I wont be telling you that you need an suv, I really don’t care what you drive just don’t try to tell me what I have to drive because it makes you feel superior because you care about a made up problem that doesn’t exist
Look at me, I drive a big big truck. I am not a tree hugger, dammit, I am a real man; and that isn’t an enlarge prostate I have, it’s real.
I am sorry # 36 Pmitchell, it all sounds so grade school.
Really, I don’t think anyone was telling you what to do about anything; for that matter, what to drive.
I am not sure why you seem to care if others do in fact feel superior, since for you, obviously The Big Truck = The Big Man.
Could it be, big truck people really are insecure?
Well we’ve already had posters here bashing people for driving SUVs, and wanting to hurt them.
Pmitchell, people do tell people not to drive tiny cars too. Many of the government safety restrictions force the mpg lower.l
no its that tiny little road louse liberal car drivers are mostly assholes with superiority complexes and feel a need to tell every one else how to live
and the truck has nothing to do with my political views. I need to be able to haul material and a prius just cant haul 800 lbs of strap to a lumber yard.
>>I drive my Tahoe not just because I like it
Ahh, but you DO like it. It makes you feel like more of a “man”, doesn’t it? Sadly, it does just the opposite.
And nobody’s telling you what you “have to drive”, just that you’re going to be paying $25/gal for gas. So deal with it.
Back in 1973, everyone was talking about 100mpg cars right around the corner. Somehow the penis-ennvy tough guys derailed that, and autos get the same shitty gas mileage that they did 35 years ago.
>>no its that tiny little road louse liberal
>>car drivers are mostly assholes with
>>superiority complexes
Hey, we ARE superior. So whaddayagonnado? I have yet to meet an SUV driver with a triple digit IQ.
And if you’re really hauling “800 lbs of strap to a lumber yard.” why don’t you use a pickup? An SUV seems like a pretty shitty way to haul “800 pounds of strap” anywhere. After all, it’s just a glorified minivan.
Why care about the size of the vehicle some drives? It is not like SUV’s are the sole cause driving demand for oil. Most of the blame is on developing countries and especially China. If every driver in the US drove an SUV that amount of additional oil consumption would be nothing compared to 1/2 the Chinese driving fuel efficient vehicles.
Frankly, I am shocked that the European car companies have not come up with something better than they have. How is it that the generally pompous Europeans have not come up with an electric vehicle or something that has more than a hamster for an engine and does not run on oil?
#40
Keep in mind, that *you* will also be paying for that $25/gal in higher transportation fees in every commodity you buy including public transportation. So much for caring about poor.
#41
Off the top of my head I can think of three aerospace engineers that drive a Tahoe, Bronco and a F350 respectively. While I cannot vouch for every SUV driver, I do know that every condiment I have met has had an IQ of zero.
>>So much for caring about poor.
Yeah, it’s really too bad that Dumbya fucked up the economy so badly. We were headed in the right direction during the Clinton years. Sure, we’re never going to eradicate poverty, and prices will always go up. But in the last seven years, we’ve hit a new low.
>>I do know that every condiment I
>>have met has had an IQ of zero.
Titter titter, Thommie. Tee hee. Btw, your absurd misuse of the term “respectively” pretty much tells us YOUR IQ {snicker}. There are exceptions to every rule, but on average, as gas mileage in one’s car goes down, so does the IQ of the driver. I’ll bet you’re lucky to get 12mgp – am I right?
#42:
“Why care about the size of the vehicle some drives? It is not like SUV’s are the sole cause driving demand for oil. Most of the blame is on developing countries and especially China.”
Actually the US is significantly ahead of other countries currently by daily consumption at about 21 million barrels per day. China is number two at 6.5 million per day. Amazingly Japan is number three. In fact the US consumes more than China, Japan, Germany, Russia, and India combined.
And you gotta admit, it’s great to make fun of people who buy 3 ton vehicles to drive across town to buy diet coke.
>>And you gotta admit, it’s great to make fun
>>of people who buy 3 ton vehicles to drive
>>across town to buy diet coke.
And it’s even more fun to laugh at the dooshe bagues as they pay $16 to drive across town for the diet soda ($0.99 for the beverage, $15.01 for gasoline).
Higher gas prices: BRING IT ON.
So Mustard would like to have people driving smart cars,and paying 50 cents a mile to drive.
Lets evaluate Mustard’s lifestyle, and pass some taxes to decide what to change. We aren’t going to force you out of that energy-hogging wi-fi router, you just have to pay $5 an hour to use it. Steaks are just for feeling manly. They contribute to global warming, so we aren’t forcing you to eat vegetarian, you just have to pay an extra $15 a pound for your beef.
>>So Mustard would like to have people
>>driving smart cars,and paying 50 cents a
>>mile to drive.
How about $1/mile? That would REALLY put the squeeze on the Humper-drivers. Bring it on, Lyin’ Mike. Bring it on. I bet you’ll have to go back to your skateboard.
>>Lets evaluate Mustard’s lifestyle
Hey, Lyin’ MikeN, my “energy-hogging WiFi router” burns 4.5 watts, and costs me about 50 cents a year to run. If they want to quadruple the price of electricity to tax me, I’m down with that. I’ll get a solar-powered one.
I seldom eat beef, so whatever it costs, that’s OK by me. I can afford it.
Lyin’ MikeN, didn’t your momma ever tell you that the best things in life are free? I know that the Repubs like to think that unless they have all the money and spend it on self-serving fripperies, life isn’t worth living.
Not true, though. Vote Democrat. Bring some dignity back to America.
Isn’t it beyond OBVIOUS that gas wasting cars have been part of the American Lifestyle because the cost of gas was “acceptable?” Yes, indeedy.
It is also obvious that very few people will make sacrifices TODAY in order to help solve problems TOMORROW. This is very much a function of rational economic behavior.
Should we have artificial raised the price of gas in 1915, or 1929, or 1939, or 1950, or 1973, or now? Oil is running out as been known almost from the start. Other than war time rationing and the 1973 shortage==gas has been a free market commondity ((YES, free market includes the formation of cartels.))
Now–I think 1973 was the clarion year as it was demonstrated that gas was more than a free market commondity, it was also a strategic resource–yet we continue even today to face the world with our pants down, so much opportunity wasted.
Its not “so bad” that gas guzzlers are still made, its that economic transport is “outlawed.”
I want my 100 mph golf cart to be street legal==maybe next decade.
People will drive fuel efficient cars simply because they can’t afford the gas. The market will force the innovation and change.
The only real question is: will the US lead the world in technical innovation or will it follow? I wonder if new companies will spring up in the US to displace the big auto makers (who are genetically unable to change) and compete with the Toyotas and Mazdas of the world. Will China and India get into the game?
What do you guys think?
#51–We are already following Japan in hybrid and electric vehicles. As usual, we create the technology and Japan makes the money off it.
I think we will live to see a re-structuring of world economies based on the change in energy availability. Imagine if “economics” forces America to build its own plastic toys/clothes/furniture/food/etc Because it becomes cost competitive with the added fuel cost of transporting goods? Already there are some products cheaper to make in the USA because of the transport cost–mostly caused by the product also using alot of energy to create to begin with.
So——-change is constant and the karmic wheel will roll again. Sad that a wise government could ameliorate the worst harms, but instead they/we ignore in favor of entrenched special interests.
>>We are already following Japan in hybrid
>>and electric vehicles.
-=-Bobster=== as long as there are Repubs in poower, we will ALWAYS follow the rest of the world. In spite of the billions and billions of dollars the Pugs channel into the military-industrial (MI) complex, it seems that citizens never derive any benefit.
As to the $30/gal gasoline, BRING IT ON. The Japanese can market some suitable alternatives to Humpers, and we can fill their coffers. There are many other options of course, but while the Pugs have a say, the special interests of the MI complex will rule.
Mission accomplished? Hey, they got their multi-million-dollar golden parachutes. What the fuck do they care?
#36. Actually I am an anti-communist. I hate them just as much as I hate everyone for whom all non conservative people are seen as communists. This includes you.
“Man is not destroying the planet”… Yes, it is.
#45
Do you know why a car weighs 3 tons??
Even most small cars??
Think about wind.
Think about getting hit, on the side, by a 60mph wind.
ASK a pilot about that type of wind, and flying at angles to Fly straight..
Do you know how many locations have winds Like this?? MANY..
Number one reason given by mothers for buying an SUV: “So I can drive over the curb at soccer games.”
Bobbo: We may be doing well in the West at some research, but we don’t have car companies that can execute. The big three just can’t compete these days. It’s their top down command structure that’s built into their companies along with a mountain of debt, mainly health care related from union contracts.
Honestly, I wish they could. I think we need a new style of company in the west to compete.
#56–QB==wouldn’t it be “nice” to know fairly well why the USA car companies do so poorly? The only USA car I have ever wanted was the first few Mustangs. After that, its all European or Japanese.
Too easy to say they are short sighted or in bed with big oil. None of it makes any sense. I can see making a mistake, wanting to build big heavy high markup SUV’s rather than low profit eco vehicles, but how long have they been losing market to the Japanese? Seems like after 10-15-20 years of losing market they would just copy what the Japanese are doing?????
I used to think healthcare would become single payer in order to make industry more competitive internationally ((ie==nothing about caring for the people but ALL ABOUT keeping our rich, rich!!)) but that hasn’t happened. Looks like we might be getting universal healthcare when the car companies go out of business?
—and the downward unimaginative spiral continues.
All the different regulations on car companies makes it harder for new company to pop up and challenge the existing companies. That’s why they’re all coming from overseas.
Personally, I would get the employees on board. Employee stock and bonus plans – if your retirement depends on it then you’re “on board”. I’d have every factory and head office person work in sales with customers for at least 5 days each year. I’d give direct bonuses to employees who found defects or improved the product.
Any company that I’ve seen in the last 20 years that is making money and innovating has heavy employee buy in.
#43
So, by that logic people like Bill Gates, Donald Trump and every other very wealthy person are dumb right? After all, anyone that can afford to drive a Ferrari that gets 8 mpg must be dumb?
Not that it matters, but I regularly get 28-32 mpg in my non-hybrid car. However, I would much rather have enough money to drive the Ferrari and not care about gas costs.
#56
Even if we assume the big three American automakers are incompetent, that does not explain the other automakers around the world. GM, Ford and Toyota made electric vehicles and then promptly ended production. Why is it that no other car company on the planet can or is willing to reintroduce the electric vehicle or some vehicle based on renewable energy? Could it possibly be that no one has devised a way of making one such that it is profitable? Look closely at the new Prius and the amount of shortcuts they have taken especially on the quality of the batteries.
Btw, I am aware of the Tesla and Chevrolet’s new Volt. We’ll see if they can actually make it profitable so that they do not disappear in a year or two.