Preview of when cheap oil runs out

[charliebrown]

Re: Preview of when cheap oil runs out

wow! thanks a lot. I will digest these over the next several days.
$20 seems cheap. Isn't that the cost of oil out of the ground to the Saudis, or more traditional extraction methods?

[ProdigyofZen]

Re: Preview of when cheap oil runs out

I would assume that the cost of oil out of the ground for the Saudis is something like 5$ a barrel now. The fields are so mature and they have already paid off or amortized their cost basis that it is all gravy, or just paying maintenance and salary costs.

But don't hold me to that.

You have to facter in the cost of the Wells in the Bakken as well as, equipment lease, salary etc all the upfront costs.

[globaleconomicollaps]

Re: Preview of when cheap oil runs out

Your attempt to attack me would be a lot more credible if you actually had some facts as opposed to beliefs.

I am on the road this week and most likely next, but as soon as I am settled, I will write an extensive post on rationing in the US and elsewhere. It is difficult to gather facts and write about these things when most of my research is on a cell phone. As for facts, I had the direct experience of seeing gas rationing with my own eyes. It is immaterial whether the reason was, that people panicked at the prospect of gas prices gong up, or the actuality of gas prices going up. The reality is that this is the M.O. of the Government. They do it over and over again. Deal with it.


I will get to your ethanol thoughts next week. Just as a quick aside, I am in Paris today. across the street from me is a service station selling petrol for 1.61 euros/liter
1.61 (Euros / liter) = 7.95699614 U.S. dollars / US gallon
I can also get E85 priced like this:
.95 (Euros / liter) = 4.69512194 U.S. dollars / US gallon
I assume that virtually the entire thing is subsidy ( due to the fact that ethanol in France come from wine grapes )

It looks to me like ethanol would be competitive without subsidies right now.

[jk]

Re: Preview of when cheap oil runs out

I am on the road this week and most likely next, but as soon as I am settled, I will write an extensive post on rationing in the US and elsewhere. It is difficult to gather facts and write about these things when most of my research is on a cell phone. As for facts, I had the direct experience of seeing gas rationing with my own eyes. It is immaterial whether the reason was, that people panicked at the prospect of gas prices gong up, or the actuality of gas prices going up. The reality is that this is the M.O. of the Government. They do it over and over again. Deal with it.


I will get to your ethanol thoughts next week. Just as a quick aside, I am in Paris today. across the street from me is a service station selling petrol for 1.61 euros/liter
1.61 (Euros / liter) = 7.95699614 U.S. dollars / US gallon
I can also get E85 priced like this:
.95 (Euros / liter) = 4.69512194 U.S. dollars / US gallon
I assume that virtually the entire thing is subsidy ( due to the fact that ethanol in France come from wine grapes )

It looks to me like ethanol would be competitive without subsidies right now.

you've got it backwards. the high price of petrol is mostly tax.