According to Shell, the inventor of the technique, it is profitable at $30.00 per barrel.
That minor blip argument is a false one. It is not any one oilfield that matters, it is the entire amount available. The liberals like to take each individual field and say it is only X% of the world market and therefore it would not affect anything significantly. That is like saying water is harmless by looking at a single drop. It is not the one drop that does the harm it is that drop combined with thousands of others.
The same is true for oil, it is not one well, or even one oilfield that will make a significant impact, it is all of them combined.
Even then no one is saying that drilling alone is the complete solution - but it is a VERY important one.
And yet oil is down $14.00 since the President lifted the ban. This is exactly how the Speculative increases will be turned into speculative DEcreases.
Give the speculators reason to believe that supply will meet demand in the future, and they will STOP bidding up the price.
It is, once again SUPPLY AND DEMAND.
It always is and always will be.
Yes, and this time next year we’ll look back on these days with great fondness, chuckling at our naïve thoughts - as the Asians suck up every available drop that our Canadian neighbors produce - paying exactly what the new Chinese and Indian consumers can bear.
All this domestic posturing is too little - too late. And you’d think a former Texas oil man would know better. But if you can’t keep your own company (sponsored by Bush41) afloat, maybe not.
It's as much to do with speculation, as much as to the supply/demand fundamentals right now.
The President makes a statement (which should have been done long ago) and the market dips. Someone blows a pipeline up in Nigeria, or there's some high windage in the Gulf, and it rises. Time was, neither event would have made any impact to the market, not in terms visible to the pump price.
A lot of LP's doom-and-gloom peak oil posts are just that ... gleefull doom and gloom, for the sake of it. One can only speculate as to why he should want this to happen. Look at the psychology forum of peakoil.org to get an insight as to why...around 50pc of the posters actually want peak oil to happen, as soon as possible.
Anyone with a brain should not, should not, want this to happen.
I don't want it to happen. I like the oil age, I really do. I like, hell, I fuckin' love squandering as much energy as I can. I drive a 911, as fast as I can legally get away with. I take a lot of short range domestic and international business class airline trips each year, just so I can do my job. I like eating good food. I like my house to be cool in summer, warm in winter.
And I like buying shit. I particularly like being able to buy shit from exotic foreign places. I like visiting exotic foreign places and buying their shit.
We should all like the oil age, and we should all, all of us, fear its passing. Because if we let it pass without a fight, then we will all experience something that will not be very nice. At all.
It's a real bummer having something, taking it for granted, and then losing it.
I work in the energy industry. I have a vested interest in seeing it continue to succeed.
We all, should all, have the same interest.
Don't we? Shouldn't we?