Peak Oil

[Marshac]

Current futures for light sweet today from nymex-

Sep 2005* * *61.53* * 61.59* * 61.59* * 61.67* * 61.34* * 61.57* * *-0.04* *
Oct 2005* * *62.61* * 0.00* * 0.00* * 62.75* * 62.41* * 62.70* * *-0.09* *
Nov 2005* * *63.35* * 0.00* * 0.00* * 63.45* * 63.15* * 63.43* * *-0.08* *
Dec 2005* * *63.87* * 0.00* * 0.00* * 64.00* * 63.67* * 63.96* * *-0.09* *
Jan 2006* * *64.24* * 0.00* * 0.00* * 64.33* * 64.08* * 64.32* * *-0.08* *
Feb 2006* * *64.52* * 0.00* * 0.00* * 64.52* * 64.42* * 64.54* * *-0.02

It's not just the spot price that's high, it's also the futures.

Quote:

The price to find a "new" barrel of oil reserves has been falling since the 1970's because of the widespread use of technology.

Like drilling two miles down into the continental shelf as opposed to a few hundred feet in TX?

[JPatrick]

Quote:

Originally Posted by Ed_The_Gypsy Do remember that there are two markets for petroleum: the spot market and long-term contracts.* The prices we see quoted for oil are spot prices and are the most volatile.* Granted, oil is no longer stored the way it used to be.* Neither are there tankers waiting just over the horizon.* People can't just buy a bunch of oil and hold it; they have to buy and sell contracts for oil, not the oil itself I don't see any problem with wild LEGAL speculation in oil.* If someone wants to bet big on oil, let them.* They are just as likely to lose big as win big.* There are too many players to be able to corner the market. Remember Bernstien's lesson: Embrace volatility! Ed

Not sure what you are saying about the different contracts and how they relate to price, but below is a years worth. *Pick your bargain

Open High Low Last *
Sep 05 60.51 62.3 60.51
Oct 05 62.1 63.3 61.6 62.6
Nov 05 62.8 64 62.3 63.25 *
Dec 05 63.35 64.5 62.81 63.9
Jan 06 63.85 64.6 63.32 64.45
Feb 06 64.2 64.9 63.68 64.4 *
Mar 06 64.25 64.95 63.75 64.72
Apr 06 64.1 64.1 63.73 64.1
May 06 64.25 64.3 64.3 64.25
Jul 06 63.7 63.7 63.7 63.7
Aug 06 63.7 64 63.3 64
Sep 06 64 64.25 63.9 64.2

[Marshac]

Quote:

Originally Posted by JPatrick Pick your bargain

[BUM]

FWIW my BIL recently retired from ARAMCO in Saudi Arabia after 20 years service. I recall him saying:

You have no idea how much oil this place has. No one knows. Modern measuring devices don't register high enough to calculate the amount of oil in some of these fields. Additionally, many wells are artesian and dont require much pumping to get the light crude onto the tanker. Its an oversimplification, but it just flows...

[Bruce]

Yes the futures show that prices will stay high. But futures are just a market guess of future prices; two years ago I am willing to bet the futures did not show $60.00 oil today.

Bruce 8)

[REWahoo]

The Wall Street Journal has an article today on the "Peak Oil" debate:

http://online.wsj.com/public/article....html?mod=mktw