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Guest Post: Who, How And Why: $140 Oil And $5 Gas

Tyler Durden's picture





 

Submitted by Llewellyn King of OilPrice.com

Who, How and Why: $140 Oil and $5 Gas

According to a loosely-organized apocalyptic Christian movement, May
21, 2011 will be the "end of days."  On or about that same date, the
price of oil in the United States will begin to climb to $4 a gallon,
according to two savants of the oil industry.

The former is highly unlikely but the latter is very probable.

The escalation in the price of oil is predicted by the legendary oil
man T. Boone Pickens, known for his financial acuity as well as his oil
expertise, and John Hofmeister, who retired as president of Shell Oil
Company, to sound the alarm about the rate of U.S. consumption of oil.

In an interview with a trade publication, Hofmeister predicted that
oil would rise to $4 a gallon this year and to $5 a gallon in the
election year 2012. Separately, Pickens—who has been leaning on Congress
to enact an energy policy that would switch large trucks and other
commercial vehicles from imported oil to domestic natural gas—predicts
that oil currently selling for just over $90 a barrel will go to $120 a
barrel, with a concomitant price per gallon of $4 or more.

The Obama administration appears to have been slow to grasp the
political implications of an escalation in the price of oil. When asked
about it, outgoing White House Press Secretary Robert Gibbs referred the
questioner to the Department of Energy.

Not everyone is alarmed by the incipient rise in the oil price.
Republicans, who are especially close to the oil industry and its
Washington lobby, orchestrated by the American Petroleum Institute,
think that a great deal of hay can be made while this particular sun
shines. They plan to attack the administration for spending too many
resources on alternative fuels, over-regulating the industry, and
keeping too many federal lands away from oil prospecting. They also
accuse the administration of being too frugal with its release of
drilling areas in the Gulf of Mexico and on the two coasts, as well as
Alaska.

The Republicans have unlikely bedfellows in their quest to politicize
the price of oil. They are joined by environmentalists who have long
believed that only high prices will break America's passion for the
automobile.

Environmentalists have long advocated European-style taxation to drive motorists out of their cars and onto buses and trains.

A third interest group that will take some pleasure in rising oil
prices are those who are invested in alternatives such as ethanol, oil
from algae and electric vehicles.

Meanwhile, the International Monetary Fund is keeping an eye on the
price of oil, according to Caroline Atkinson, director of external
relations at the IMF. She told a Washington press briefing that the IMF
is particularly concerned with food and other commodities that are
directly affected by the price of oil.

Hofmeister, who now heads the non-profit Citizens for Affordable
Energy that advocates energy development in all forms, believes that the
United States could increase oil production from the current 7 million
barrels per day to 10 million, half of its consumption. He told an
interviewer from Platt's, an energy publisher and broadcaster, that we
were "essentially frittering at the edges of renewable energy, stifling
production in hydrocarbon energy," which he said could lead to
blackouts, brownouts, gas lines and rationing.

There are already signs that the Republican-controlled House of
Representatives is planning a big push for hydrocarbon energy. An
indication of this comes from Rep. Fred Upton, R-Mich., a one-time
global-warming believer who has dropped that issue from his agenda. He
is the new chairman of the House Energy and Commerce Committee.

In periods of high gasoline prices in the past, presidents have found
there is very little that they can do. Their options are to reduce the
tax on gasoline, sell oil from the Strategic Petroleum Reserve or the
Naval Petroleum Reserve. President George W. Bush went a step further:
He went to Saudi Arabia twice to ask the Saudis to increase their rate
of production. Twice he came back empty-handed.

All of this would be good news for the oil producers and especially those troublesome players, Russia and Venezuela.

Of course, if you believe the human endeavor ends on May 21, better fuel the SUV and hit the road.

 


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Thu, 01/13/2011 - 17:57 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

..and $20.10 for an ounce of silver.

Thu, 01/13/2011 - 18:06 | Link to Comment treemagnet
treemagnet's picture

$20.10? I don't get it?

Thu, 01/13/2011 - 18:08 | Link to Comment mynhair
mynhair's picture

They put it there and I'm backing up the truck....

Thu, 01/13/2011 - 18:18 | Link to Comment treemagnet
treemagnet's picture

I concur

Thu, 01/13/2011 - 19:01 | Link to Comment JW n FL
JW n FL's picture
by mynhair
on Thu, 01/13/2011 - 17:08
#874517

 

They put it there and I'm backing up the truck....

********************************************************************************

I will shoot you and back my trucks up! Palin Map Rules Bitches!

Thu, 01/13/2011 - 19:03 | Link to Comment JW n FL
JW n FL's picture
by mynhair
on Thu, 01/13/2011 - 17:08
#874517

 

They put it there and I'm backing up the truck....

******************************************************************************

How many dummy's that are all gold... will have to trade into silver?

how much are you charging as the new bank of "mynhair" for that swap? gives taxation without representation a whole new luster doesnt it? 

Thu, 01/13/2011 - 20:49 | Link to Comment Betty Swallsack
Betty Swallsack's picture

Me neither.  For shits and giggles, I 'Googled' May 21, 2011, and here is the result (we're all gonna die - again - *yawn*):

http://www.ebiblefellowship.com/may21/

 

Thu, 01/13/2011 - 22:46 | Link to Comment swmnguy
swmnguy's picture

Thanks for the link.  I hate it when we all die.  Actually, 5/21/11 is the date of the Rapture.  The world isn't destroyed by fire until 10/21/11.  So those of us "left behind" get about 5 months to have fun with all the stuff left unattended.

BTFD!

Fri, 01/14/2011 - 00:35 | Link to Comment Freddie
Freddie's picture

If the Muni Bond market blows up on 5-21-11 or before it - these end of days Rapture folks will be looking pretty smart.  They sound more sane then The Ben Bernank.  Illinois is going to have a tough floating muni bonds.  Ditto Calif.

As far as silver to $20 - the hot money for gold and silver is going to food commodites and oil/nat gas.  precious metals may cool off for a little while.

Thu, 01/13/2011 - 17:57 | Link to Comment Bearster
Bearster's picture

T Boone "rent seeker" Pickens

Thu, 01/13/2011 - 18:27 | Link to Comment downrodeo
downrodeo's picture

ya, I would like to see if he would make money or lose money if his plan was fully implemented. If I had to guess...

Thu, 01/13/2011 - 19:58 | Link to Comment freedmon
freedmon's picture

Pickens is a scam artist. A little while ago he was trying to greenwash himself with his "Pickens Plan" for wind farms in the Texas panhandle. No doubt, built by friends of his, on lands he owns. He was asking people to support his plan by writing the government.

Now here he is again, asking to feed at the government trough. You know that he's got money in natural gas, and he'd happily take the contract to supply the trucking industry.

Maybe he is a brilliant businessman. He certainly knows where the easy money is.

Thu, 01/13/2011 - 21:35 | Link to Comment Calmyourself
Calmyourself's picture

As you know he abandoned that plan when no one would pay for the expensive transmission lines to connect his windtowers. ha

Rent Seekers extraordinaire, T. Boone and GE

Thu, 01/13/2011 - 22:47 | Link to Comment swmnguy
swmnguy's picture

"He certainly knows where the easy money is."

And from whom it is soon parted.

Thu, 01/13/2011 - 23:20 | Link to Comment Big Red
Big Red's picture

the windfarm(s) were one thing, he was really about water rights...

Fri, 01/14/2011 - 04:40 | Link to Comment Confused
Confused's picture

BINGO!!!!

 

I find it amusing how this never comes up. This guy is a fucking parasite of the worst kind. 

 

Alternative energy indeed. We can go without oil. Water...not so much. 

Thu, 01/13/2011 - 17:58 | Link to Comment hambone
hambone's picture

Never happen...Ben will just print more money...uh, wait, that won't help? 

Ok, Never gonna happen cause Ben will print twice as much money...uh, won't help?

Don't triple dog dare Ben...he's just crazy nuf.

Thu, 01/13/2011 - 17:59 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Other than the obvious oil speculations, there are other ways to play this jump (if it happens) in oil prices.

-- Au, Ag, Pt, Pd (kind and tolerant ZH-ers may forgive me for repeating ad nauseum)

-- Food ETFs DBA and CORN will likely parallel movemont in crude oil prices

Looks like 2011 is not going to be a kind year to us.  Prepare!

Thu, 01/13/2011 - 18:01 | Link to Comment mynhair
mynhair's picture

The Mayans can't count?

Thu, 01/13/2011 - 18:09 | Link to Comment Johnny Dangereaux
Johnny Dangereaux's picture

-12/21/12

Thu, 01/13/2011 - 18:18 | Link to Comment mynhair
mynhair's picture

vs 5/21/11, a slur on all Mayans

Thu, 01/13/2011 - 18:45 | Link to Comment scatterbrains
scatterbrains's picture

or maybe even 11/11/11  at 11:11:11 o'clock.

 

look for the party on 111st at apt. #11

Thu, 01/13/2011 - 18:57 | Link to Comment mynhair
mynhair's picture

OMG!  It takes a stupid response to a stupid comment to generate stupid replies!

I (heart) ZH!

Thu, 01/13/2011 - 20:10 | Link to Comment CulturalEngineer
CulturalEngineer's picture

42

Thu, 01/13/2011 - 21:37 | Link to Comment Calmyourself
Calmyourself's picture

That is the answer alright.. For everything, forever and ever.. Thanks for the fish.

Thu, 01/13/2011 - 20:48 | Link to Comment DosZap
DosZap's picture

Time set?, 11/11/11,111st,#11@11:11:11 p.m.(What zone?)

Thu, 01/13/2011 - 21:48 | Link to Comment hambone
hambone's picture

Is there a theme (smart casual, tinfoil, toga) or is this just a "come as you are"?

Hate to feel over / under dressed.

Thu, 01/13/2011 - 18:01 | Link to Comment andybev01
andybev01's picture

On May 22nd all of those holier-than-thou christians are going to wake up to discover that the rapture didn't spirit them away, then they will drive down to the corner gas station and fill up their econo-boxes with $5 a gallon gas.

...and I'm sure it's the former that is going to make then more angry.

Thu, 01/13/2011 - 18:04 | Link to Comment mynhair
mynhair's picture

but the Libs will still be rolling in their Volts, right?  Until they aren't.

Fri, 01/14/2011 - 04:43 | Link to Comment Confused
Confused's picture

why does anyone still play into the libs/conservative paradigm? Neither of them speak for you, even if they were truly different. 

 

Thu, 01/13/2011 - 18:23 | Link to Comment aerojet
aerojet's picture

With any luck at all, they will go all Jonestown on themselves and then there will be a bull market in body cleanup companies.

Thu, 01/13/2011 - 18:52 | Link to Comment midtowng
midtowng's picture

It never ceases to amaze me how the religious nuts look forward to the apocolypse, as if they know they are holier-than-thou.

Thu, 01/13/2011 - 19:11 | Link to Comment Blano
Blano's picture

Not all of us do, trust me on that.  I find these date callers offensive as well.

Thu, 01/13/2011 - 20:52 | Link to Comment DosZap
DosZap's picture

Offensive, no, ignorant.

Only ONE knows the time, and day, and hour.

Thu, 01/13/2011 - 22:12 | Link to Comment robertocarlos
robertocarlos's picture

If you're not in the top 144,000 then you are doing something wrong. :)

Thu, 01/13/2011 - 19:35 | Link to Comment Hulk
Hulk's picture

Camping called for the end of the world in 94...wonder if he and his followers will be paying their taxes this year??? I'd just file an extension...

Thu, 01/13/2011 - 18:03 | Link to Comment 101 years and c...
101 years and counting's picture

$3 gas is already killing demand, which is down YoY according to mastercard and spending pulse.

 

 

Thu, 01/13/2011 - 18:05 | Link to Comment mynhair
mynhair's picture

$3.18 here, but I still have half a tank.  Fill up now, or later?

Thu, 01/13/2011 - 20:59 | Link to Comment DosZap
DosZap's picture

Does it make a Hill of beans?,react, adjust, drive on.

It will be what it will be.Chinese wont be paying that, Gvt subsdizes their gas/diesel costs.

Actually, all BS aside, I have brough this up here many times,I must admit to being perplexed.

We have more Natural Gas reserves than ALL of the ME,combined.

Yet, instead of offering a $1k option for a conversion swithchover, we are dead set on electric, and trilions of $ of research for electric, someone clue me in, as to why we are so foolish.

All but the largest trucks could operate fine of Nat Gas.

 

Thu, 01/13/2011 - 18:40 | Link to Comment hambone
hambone's picture

Who's this Mastercard and Spending Pulse you speak of?  WTF do they know?

According to the talking heads on TV (who quote other talking heads), Americans DEMAND more cheap stuff and always will.  Cause they're Merican's...and Merican's are incapable of not spending, even a lack of spendable cash won't stop them from spending. 

If times get harder, look up for a beard shaped bald headed beacon in the sky...run to the helicopters and bring sacks...spending must be maintained.

Don't listen to stupid facts, focus on the all knowing heads.

Thu, 01/13/2011 - 18:06 | Link to Comment Jasper M
Jasper M's picture

I will call that hand. 

Thu, 01/13/2011 - 18:07 | Link to Comment mynhair
mynhair's picture

Do you klowns not realize there is a rating system for articles?  I'm the only vote in.....

Thu, 01/13/2011 - 18:13 | Link to Comment Johnny Dangereaux
Johnny Dangereaux's picture

Mr. Clown to you, pussy...

Thu, 01/13/2011 - 18:15 | Link to Comment mynhair
mynhair's picture

My mistake, Mr. Klown...

Thu, 01/13/2011 - 18:13 | Link to Comment Jean Valjean
Jean Valjean's picture

Why should I believe a guy who interchanges the word "oil" when he means "gasoline"?  This is an expert?

Thu, 01/13/2011 - 19:11 | Link to Comment Navigator
Navigator's picture

+ 1

Thu, 01/13/2011 - 19:12 | Link to Comment Navigator
Navigator's picture

+ 1

Thu, 01/13/2011 - 19:26 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

+1

You will often be junked for being a pedant, but poor spelling, grammar and logical errors will erode credibility for me. Take the time to proofread and hit the damn spell check button.

Fri, 01/14/2011 - 04:17 | Link to Comment Sabibaby
Sabibaby's picture

...and sometimes you'll be junked if you're just a dick.....

 

hey! I got the captcha rite!

Thu, 01/13/2011 - 18:14 | Link to Comment mynhair
mynhair's picture

When they make a car with separate tanks for ethanol and gas, color me in.

How hard to put a straw in the correct tank?

Thu, 01/13/2011 - 19:29 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

We'll all be running on woodgas, there won't be any trees left, but hell, we'll show OPEC who has the last laugh!

http://www.lowtechmagazine.com/2010/01/wood-gas-cars.html

 

Fri, 01/14/2011 - 11:13 | Link to Comment Matt
Matt's picture

why do you need seperate tanks? with flex-fuel design, you can have a range of 100% gasoline to 85% ethanol/15% gasoline with North American and European vehicles, and with South American ones, any mix between 100% gasoline and 100% ethanol. Lower Ethanol mix is used in cold weather, to prevent cold start problems.   -NVM I think you meant natural gas and ethanol. which dont mix.

Thu, 01/13/2011 - 18:20 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Yep.  Send Billions to Saudia Arabia and Shovel Tons on Money into the Banks.  The Americans will pay for it.

The People in power are trying to Level the  playing field and make Americans equal to the Chinese working for $.50 cents an hour just to buy a loaf of bread for the day.  If they can afford it.

Fri, 01/14/2011 - 04:44 | Link to Comment AnAnonymous
AnAnonymous's picture

The People in power are trying to Level the  playing field and make Americans equal to the Chinese working for $.50 cents an hour just to buy a loaf of bread for the day.  If they can afford it.

 

On the very contrary.  The US has never played to level the playing field. The US organized a race to the bottom on a world scale.

The Chinese though, are trying to level the playing field upwards. They wont manage.

Thu, 01/13/2011 - 18:21 | Link to Comment aerojet
aerojet's picture

Didn't T Boone get fucked when oil plummeted from 147?  Seems like he is wishing it will go that high again so he can unload.

Thu, 01/13/2011 - 18:22 | Link to Comment the rookie cynic
the rookie cynic's picture

Russia is making cars that run on gasoline and natural gas. USA is overly dependent on oil. Boone is right on. We need more natural gas infrastructure, otherwise the peak-oil hard landing will be an full on face-plant.

Thu, 01/13/2011 - 18:31 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

PERU for chrissakes has a cottage industry of converting cars over to Nat Gas, much of Lima's taxi fleet runs on Nat Gas.  Plenty of stations there now sell it.

If a poor country like Peru can do it, why can't we?  Pickens proposal to run truck and city bus fleets on Nat Gas seems to be good.  He makes money off it?  Talking his book?  Still seems like a good idea to me.

Thu, 01/13/2011 - 18:57 | Link to Comment hambone
hambone's picture

Just imagine if Obama or the administration had stated a goal that within 3yrs(?) all gov vehicles were to be run on natural gas, US truck fleet within 5yrs(?).  Imagine the latitude this would allow us to deal with rising oil prices.

Alas, big O "couldn't" find the energy or time away from the golf course to wean the US from foreign oil.  Given oil is pricing can swing heavily on a 3% marginal demand swing, you'd think an action like this could have major impacts.

Strange really cause it seems almost too obvious he's owned by bankers and petro interests.  You'd think they'd at least feign interest?!?

Fri, 01/14/2011 - 04:48 | Link to Comment Confused
Confused's picture

whats the saying?

 

"meet the new boss, same as the old boss."

 

Something like that. 

Thu, 01/13/2011 - 18:58 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

In general, it doesn't work.  Natural gas has 1/1000 the energy density of oil on a volume basis.  To make it work in even a remotely tolerable way, you have to pressurize the gas.  You can't pressurize it to 1000X ambient and so the tank size will ALWAYS hold far less energy than an equivalently sized tank of oil (gasoline).

This is just physics.  Not economics.  The trucks and cars you see running on natgas have ranges of a few 10s of miles and then they have to find a place to refill. The task is done with pressurized gas and it is a perpetual accident at the refilling station waiting to happen.

Sashay on over to the Honda Civic website and look at their nat gas car.  It costs a ton more than the conventional Civic and if you dig really deep you'll find that they eliminated the trunk to make the tank larger.

You can't beat physics.  Oil is incredible stuff.  It has 1000X the energy density as nat gas.  That's just a devastating reality.

Thu, 01/13/2011 - 19:12 | Link to Comment the rookie cynic
the rookie cynic's picture

Granted. Natural gas is less convenient than natural gas. What would you propose?

 

Thu, 01/13/2011 - 19:12 | Link to Comment hambone
hambone's picture

Mr. CrashisOptimistic (or can I call you crash?),

my point is not that that Nat gas is it...my point is if Obama gave a shat he'd and his "pep's" would be looking to diversify away from oil, more roads, and more oil.  The Volt seems a token and he had nutting to do with it. 

Where is the "man on the moon" type energy policy? 

I voted for big O so gives me every right to rip one of the least effective presidents in our history.

Thu, 01/13/2011 - 20:13 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Shrug.  I don't have to care if I am credible.  I type for the helluva it, so I don't massage my text to avoid an aura of extremism.

The truth is there is no law of the universe which says all problems have an answer.  We have 7 Billion people on the planet.  Most of them are going to die prematurely.  Not all. . . probably, but the vast majority are.

Reject that.  I don't care.  

Don't blame Obama.  Don't blame Bush.  It's no one's fault.  Everything doesn't have to be someone's fault.  It just is.  Most people are going to die.  Soon.

Have a plan.  Start with water that doesn't arrive in pipes, because the pipe pressure is not going to be there.  As soon as you think about water, you'll realize what's what.

Thu, 01/13/2011 - 21:41 | Link to Comment hambone
hambone's picture

Crash,

+1...very solid perspective and you are right.  What is...is. 

How we got here is now a matter for the historians. 

How we squeeze a little more time out on this planet is up to you and me.

Thu, 01/13/2011 - 23:08 | Link to Comment Ben Fleeced
Ben Fleeced's picture

The isness is your business

Thu, 01/13/2011 - 23:21 | Link to Comment mtomato2
mtomato2's picture

One of the best post in the forum.  Ever.  Love your demeanor.  Rock on.

Fri, 01/14/2011 - 01:24 | Link to Comment trav7777
trav7777's picture

at some point you will become so exasperated with peoples' inability to grasp or unwillingness to accept your points that you will sprinkle in some cursing and otherwise become me!

Minor quibble though, everybody is going to die.  As for water, total BFD.  Use Tatooine technology.  Obviously if there were no power and no nothing, a lot of mfers have a problem.  But a solar panel can power Uncle Owen's water maker.  This really isn't the hard problem people make it out to be.

Fri, 01/14/2011 - 15:12 | Link to Comment Hicham
Hicham's picture

Great post indeed.

Thu, 01/13/2011 - 22:39 | Link to Comment Diogenes
Diogenes's picture

Back in the late 70s - early 80s the Canadian government offered a tax break to nat gas powered cars. Thousands took them up on it. Especially taxis and light delivery trucks.

The conversion cost a few hundred $$$$ and was added onto a gas car. In other words you could run your car on gasoline or nat gas. The nat gas went in pressurized tanks in the trunk or under the car.

Mileage on nat gas is slightly lower BUT nat gas is 110 octane. If you raised your compression ratio to suit and used only nat gas, you would get the same mileage or better, and more power.

Nat gas was also a lot cheaper.

Then oil got abundant and cheap and everyone forgot about nat gas. The point is if oil gets short again the conversion to nat gas is easy and cheap and it works.

Fri, 01/14/2011 - 00:38 | Link to Comment Non Passaran
Non Passaran's picture

This post doesn't seem accurate at all. I'm on mobile phone that's running out of power, but I looked on the Web and conversion kits cost only 1,000 bucks or so. Secondly, where I live many cars run on compressed natural gas and I've never heard of any accidents. And IIRC there aren't any serious limitations related to range. So every single thing you said looks inaccurate. Those looking for a more accurate description of advantages and shortcomings can read http://en.m.wikipedia.org/wiki/Compressed_natural_gas

Fri, 01/14/2011 - 00:50 | Link to Comment collinar
collinar's picture

It is true, CrashisOptimistic, that Natural gas has 1/1000 the energy density of oil on a volume basis. If you do a little research you will find that you can create a liquid fuel like gasoline from NatGas and recycled CO2 output from coal and natgas power plants.

Fri, 01/14/2011 - 01:28 | Link to Comment trav7777
trav7777's picture

hmm...I've got to take some exception here.

what we need is lateral thinking.  Replacing oil in an ICE with NG in an ICE makes little sense.

We need gasoline fuel cells and other technologies that have significantly higher operating efficiencies.  However, there has been little progress due to little trying.  We spend far more looking for more oil than we do on trying to obsolete the dumbass gas powered heat waster airpumps we call motors.

Alcohol, NG, or gasoline fuel cells would provide an efficiency tripling straightaway.

Fri, 01/14/2011 - 10:28 | Link to Comment RKDS
RKDS's picture

Well I looked into it a couple weeks ago and it's just not affordable even if it's possible.  All of the conversion kits/services I could find applied only a to a handful of vehicles (mostly trucks) and were north of $7K to start.  You know what it would cost to put a new ICE in my Pontiac?  About $4K including labor.  Incidentally, this is similar to what killed my solar power project.  I could afford the panels themselves (American-made even), but $40K of labor on top was ridiculous.  So now I have a pellet stove I didn't really want but need to keep my ranch house's electric bills under $400 per month.  I'm not totally helpless with this stuff, but damnit Jim, I'm a programmer, not a mechanical engineer.

Thu, 01/13/2011 - 18:48 | Link to Comment mynhair
mynhair's picture

Ah, fart-in-the-jar technology.  How hard is it to put the straw in the correct hole?

Thu, 01/13/2011 - 21:26 | Link to Comment DosZap
DosZap's picture

WE have had the technology in use since the 50's!!!!!!!!.

It gives less power, because of the BTU ratios, but close enough to work fine(like 85%BTU to Unleaded).

Whe I was a kid, our local gas company ran their service trucks on Nat Gas, and Gasoline.........that was in the late 50's.

As I stated abve the USA has the largest known Natural Gas reserves on the planet............

Convert, give it as an option to car /light truck buyers(less than 1k-1500.00), and watch them fly off the lots.

Whay are we spending trillions on special batteries for a lousy 40-100 miles?.

Damned fools.

 

Thu, 01/13/2011 - 21:23 | Link to Comment DosZap
DosZap's picture

No problem mate!!,.

We have a headstart, buy inflatable pools while cheap, and available.

Lots of Ground Chuck, and Oscar Mayers,(hurry beef n hogs, gonna be high as hell come spring) freeze..........we be VACATION ready.

Unless you want to fly, and tkae the chance of  a reach around at American.

And allow a Lesbonian to feel up your chick/spousal unit.

 

Thu, 01/13/2011 - 18:27 | Link to Comment NOTW777
NOTW777's picture

is there a new goal for ZH to post up vomit every once and a while

Thu, 01/13/2011 - 23:30 | Link to Comment mtomato2
mtomato2's picture

You could go back to MarketWatch and jerk off to your financia-porn.

Thu, 01/13/2011 - 18:30 | Link to Comment NOTW777
NOTW777's picture

oilprice is associated with the church of oprah or rev wright?

Thu, 01/13/2011 - 20:18 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

>>

Hofmeister, who now heads the non-profit Citizens for Affordable Energy that advocates energy development in all forms, believes that the United States could increase oil production from the current 7 million barrels per day to 10 million, half of its consumption.

>>

US crude oil production in 2010 was 5.38 million barrels per day.  Nowhere fucking near 7.  How can he have this fundamental baseline number 40% wrong?

US crude oil production hit about 11 million bpd several decades (not years, decades) ago.  It will never be equaled.  That was the peak.

 

 

Fri, 01/14/2011 - 08:02 | Link to Comment trav7777
trav7777's picture

but...but...BAKKEN!?!  and unicorns

Thu, 01/13/2011 - 18:35 | Link to Comment King of Spain
King of Spain's picture

"the legendary oil man T. Boone Pickens, known for his financial acuity as well as his oil expertise"

yeah, Boone took a -98% beating on his  cmdty fund in 08.  And another of his fund down 60ish%

 

Also down in 2010.

Thu, 01/13/2011 - 19:00 | Link to Comment ZeroPower
ZeroPower's picture

Yes, good of you to bring it up. Also known for such fine comments as implying the $147 price was solely due to S&D -zero speculation in oil futures obvs.

Thu, 01/13/2011 - 18:35 | Link to Comment Silver Bully
Silver Bully's picture

Good to see Tea Boon is still around! And still pushing that natural gas schtick, I see. Well, he won't have to worry much since ALL commodities are going to the moon (Alice!). He oughta just sit back and enjoy the ride instead of getting everyone all antsy. After all, the peasants don't need to work for money.

Or drive a gasoline-powered car to get to their slave labor.

Or live in a foreclosed home.

Or eat.

Thu, 01/13/2011 - 18:41 | Link to Comment holmes
holmes's picture

$5.00 gasoline in 2012 ends Obama's chances of a 2nd term. Bring it on.

Thu, 01/13/2011 - 18:52 | Link to Comment mynhair
mynhair's picture

Can I cry 'foul', as I can't walk 10 miles to my polling place?

(And back, of course.  A horse, a horse! A vote for my horse!)

Please chime in, Mr. Ed.

Thu, 01/13/2011 - 23:17 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Bring back hitchin' posts and watering toughs. I can ride to my polling place in less than 5 minutes, at a canter.

Thu, 01/13/2011 - 18:45 | Link to Comment miker
miker's picture

T-boone has been T-boned.  I mean really, why don't these people know when to shutup and retire.  I'm sick and tired of Buffet too.  He needs to find a nice retirement center and play bridge for the rest of his days.

Thu, 01/13/2011 - 19:38 | Link to Comment the rookie cynic
the rookie cynic's picture

I suppose you prefer Timmay and Austan?

Thu, 01/13/2011 - 18:49 | Link to Comment buzzsaw99
buzzsaw99's picture

T. Boone has some windmills for sale too.

Thu, 01/13/2011 - 19:12 | Link to Comment Blano
Blano's picture

Thank you.

Thu, 01/13/2011 - 18:52 | Link to Comment ZackLo
ZackLo's picture

where's the factories at?

http://www.youtube.com/watch?v=TEmwIdffe44

http://www.youtube.com/watch?v=CrxfMz2eDME

and a list im sure you can find more

http://www.youtube.com/results?search_query=water+powered+car&suggested_...

 

monopoly labor unions, oil subsidies, and good "old" fashion money (credit) printing...I don't understand why they don't just have a lottery already..the team of people who make a car that runs on water and presents it to the government gets 3b$, 2.9 billion of which must be spent building factories to mass produce it or they can take $100,000,000 and pass the patent on to whoever can best mass produce it with 2.9b$.

I don't like government intervention but if they are going to do it.....well this seems to me to be alot cheaper then running tanks over in the sandbox in circles..and losing thousands of soldiers...

 

Thu, 01/13/2011 - 18:54 | Link to Comment mynhair
mynhair's picture

With zero friction, I can make a car run on water - just supply the beer.

Thu, 01/13/2011 - 18:52 | Link to Comment bb5
bb5's picture

"legendary oil man T. Boone Pickens, known for his financial acuity as well as his oil expertise," I can remember him saying that speculators were not responsible for the last $140 spike in oil. He said it was all supply and demand. Jesse "the Body" Ventura just did a show on Picken's plan to drain a Texas aquifer into his bank account!

Fri, 01/14/2011 - 05:07 | Link to Comment Confused
Confused's picture

Water...thats what Pickens is all about. Everything else is talking that book. 

Thu, 01/13/2011 - 18:56 | Link to Comment drink or die
drink or die's picture

Of course this will happen right when I'm about to finish my 240Z project...sigh.

Thu, 01/13/2011 - 21:43 | Link to Comment Calmyourself
Calmyourself's picture

Sweet, got pics online post a link, love those!

Thu, 01/13/2011 - 18:58 | Link to Comment Rainman
Rainman's picture

5 a gallon ?? I thought Gary was working on position limits on these fuckerz.

Thu, 01/13/2011 - 19:00 | Link to Comment nate28jf
nate28jf's picture

W only got to the hand-holding stage w/ the Saudis.  Obama, you gotta let em at least get to third base with ya.

 

Thu, 01/13/2011 - 19:03 | Link to Comment onlymyopinion
onlymyopinion's picture

I just hope my SSO & FAS are a lot higher when gas hits 5.00! 

Thu, 01/13/2011 - 19:09 | Link to Comment Navigator
Navigator's picture

"...the price of oil in the United States will begin to climb to $4 a gallon...."

I think this imbecile is talking about the price of gasoline...although he repeatedly says "the price of oil".  

If he actually means oil, since there are 42 gallons of gasoline in a barrel of oil, he is predicting an oil price of 4 x 42 or $168 per barrel.

While that might happen if there's a geopolitical event that pops the price oil....and it will most certainly happen eventually due to peak oil...it's unlikely otherwise, for awhile at least due to the economic damage it would do and the subsequent pullback in economic activity worldwide.

Thu, 01/13/2011 - 19:26 | Link to Comment Devout Republican
Devout Republican's picture

This is an easy fix. 

1. Elect Sarah Palin for president.

2. Open up Alaska to drilling.  (they have millions of barrels).

3. Put an end to unions and the job killing obamacare bill.

Blessings to all of you.  (except for global warming hucksters)

Thu, 01/13/2011 - 19:59 | Link to Comment hambone
hambone's picture

Please pray for me because I don't like you.

Thu, 01/13/2011 - 20:03 | Link to Comment Devout Republican
Devout Republican's picture

Of course I will pray for you my brother.

Thu, 01/13/2011 - 21:43 | Link to Comment hambone
hambone's picture

I just felt better and disliked you less - divine intervention?

 

Thu, 01/13/2011 - 20:09 | Link to Comment oddjob
oddjob's picture

4) make Joseph Hazelwood her v.p.

Thu, 01/13/2011 - 19:37 | Link to Comment Buttcathead
Buttcathead's picture

If "Dah Great Bernack" keeps creating digital dollars, Oil could hit $500 a barrel. 

Thu, 01/13/2011 - 19:40 | Link to Comment Buttcathead
Buttcathead's picture

even with low demand and hi supply "Dah Great Bernack"  can float anything !!!

Thu, 01/13/2011 - 19:50 | Link to Comment That Peak Oil Guy
That Peak Oil Guy's picture

I'm sure a devalued dollar has nothing to do with an increase in the price of oil as measured in... dollars.

And meanwhile demand in the US is low, so if demand is driving the price rather than inflation then it is not us doing it.

Don't believe all those stories you heard about oil drawdowns "beating expectations" and harbinging the continuance of the "recovery" due to increased consumer demand.  We are exporting more refined oil than ever!

Our refineries are making up for slack US demand with exports.  I imagine the margins are tighter!  Here is a chart from the EIA showing how our exports have increased recently.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MDIEXUS2&f=M

We have a triple-whammy; price inflation due to dollar devaluation, increasing production costs due to harder to obtain supply, and increasing competition for supply from the developing world.

TPOG

Thu, 01/13/2011 - 20:35 | Link to Comment Rainman
Rainman's picture

And it doesn't take long for the general public to forget that the last oil pricing spike peaked right in the midst of the banking crisis non-announcements....summer of 08. Guess the boyz'll have to blow up the Euro sooner than later to save the dollar now.

Thu, 01/13/2011 - 20:25 | Link to Comment The Alarmist
The Alarmist's picture

If you count the annual costs of the never-ending war in Iraq as well as the explicit costs of policing the seas in Southwest Asia and the middle east and the not so explicit costs of buying friends and allies in the region, Americans are already paying well north of $5 per gallon of gas.  The price at the pump is mere illusion to keep the sheeple relatively contented.

Fri, 01/14/2011 - 01:03 | Link to Comment collinar
collinar's picture

And don't forget to include the increased health care cost associated with the oil spills. Yes, well north of $5 per gallon.

Thu, 01/13/2011 - 20:52 | Link to Comment Buck Johnson
Buck Johnson's picture

The price of gasoline and oil is this high at this time of year, what until the spring and summer get here. We will see 4 dollars a gallone if not 5 this summer.

Thu, 01/13/2011 - 21:33 | Link to Comment Betty Swallsack
Betty Swallsack's picture

No, it is you.  You should not drink and Zero Hedge.

Thu, 01/13/2011 - 21:19 | Link to Comment markar
markar's picture

the entire fleet of busses in the greater Palm Springs area run on nat. gas or hydrogen fuel cells. Has been years without a mishap.The trunk routes are at least 20 miles long. May not be a good option for long distances, but could definitely take a lot of pressure off oil.

Thu, 01/13/2011 - 23:14 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

May 21 was going to be the date of the apocalypse, but thank God almighty we're saved.

 

oil from algae, bitches!!!!!!!!!!!!

Thu, 01/13/2011 - 23:58 | Link to Comment StychoKiller
StychoKiller's picture

How do ya put the milkin' machines on those little critters?

Sat, 01/15/2011 - 22:07 | Link to Comment naughtius maximus
naughtius maximus's picture

Tiny milkmaids BITCHEZ!

Fri, 01/14/2011 - 00:21 | Link to Comment HungrySeagull
HungrySeagull's picture

4 dollar gas aint gonna stop us.

 

Nor will 8.00 gas.

 

It will take 12.00 gas to erase our net pay and make us stay home and forget the vehicles to buy horses or bikes instead.

 

But I am fearing 5.00 gas because the pheasants will become angry because they cannot buy vices such as smokes, lottery tickets or beer to go with the gasoline.

 

In 1969 or so we had .28 gas I think, all leaded. 30 gallon tanks and large engines. 5 bucks to fill maybe a tenner. Drive at 70 mph all week.

 

Repeat.

 

Now? I don't care anymore. Partly because there is a small amount of gasoline on hand to keep one vehicle going 6 weeks in case of Arab Oil Embargo II.

 

With that in mind, that new Ford Focus electric car is looking more promising. Plug it in and forget the gas. Now the electric bill would skyrocket. But a bit of solar here, geo there and wind over yonder should take care of that.

Sat, 01/15/2011 - 20:14 | Link to Comment FinanceSeer
FinanceSeer's picture

Agreed. $5 a gallon gas by end 4th Quarter of 2011. Not to mention that we are in an OIL PEAK/DECLINE. Chevron and Co are switching to NATURAL GAS on the Down Low(kinda). They are FRACKING for all they are worth in/around the South and SouthEast. I watch HBO so i know! So President OBAMAs push for Alt Energy ala NUCLEAR REACTORS is a good thang. Which shoulda happened in the 70s butt TRICKY DICK NIXON was in the pokcets of the OIL COMPANIES, while the DOE (such as it was) was ROBO stamping any OIL projects! Anyway, OIL should reach $100 per this year (or more). Another good thing that OBAMA Finished the START business of ol DOUBLE RR from the 80s. Stay tuned.

Sat, 01/15/2011 - 21:44 | Link to Comment naughtius maximus
naughtius maximus's picture

...in the price of oil is predicted by the legendary oil man T. Boone Pickens, known for his financial acuity...

Hows that acuity doing with wind power these days?

Sat, 01/15/2011 - 22:05 | Link to Comment naughtius maximus
naughtius maximus's picture

I have the solution! Nuclear reactor powered automobiles!

Ok you think that is insane how about this? Convert natural gas into propane, liquify that and then feed that into your tank. Fill ups would be faster than natural gas, it would require less compression energy (and this is significant believe it or not). I was seriously looking into getting a natural gas vehical but the reality is that home based gas filling stations are expensive. Now that alone isn't much of a problem but the only remaining home based fill station went out of business. It can also take nearly half a day for a single fill up. Propane would be a lot faster to fill, energy density is better. The US has a great amount of natural gas. It could extend our way of life for annother 40 years or so. After that there is biomethane. Germany is already in the process of meeting 80% of their natural gas needs with biomethane. I think they can pull it off. Energy wise biomethane is better than ethanol, you get a lot more out than you put in. Ethanol is killing people by starvation. Running out of gasoline is just an inconvienance. 

Sun, 01/16/2011 - 09:59 | Link to Comment naughtius maximus
naughtius maximus's picture

Also propane can be transported via pipeline where ethanol cannot!

Tue, 01/18/2011 - 01:32 | Link to Comment HungrySeagull
HungrySeagull's picture

I hear tell Southern Arkansas sees massive fields of Lignite Coal (Spelling?) and are getting ready to strip mine it for energy. I was raised where we had good Steam and Metal related coal, but those are not welcome in today's Political Climate.

Someone seems to think they can convert Lignite Coal into something to run the vehicles.

Wind Power is infecting everything these days The main issue is running long haul transmission lines to feed from the windmills.

I never thought I would be saying this, but the old Mad Max movie is looking more and more classic today and spot on.

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