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Kasz216 on 19 February 2012
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Squilliam said:
Kasz216 said:
Squilliam said:
Kasz216 said:

That's just not true.  It would be very practical to implement natural gas in cars for example... and pretty cheap.

Oil is in fine condition still, you can tell by the fact that we still aren't tapping into COUNTLESS areas with oil that have been named "off limits".

Hell, offshore drilling was just recently brought back on the table in part of Obama's plan to "Outflank the Republicans" by suddenly getting way more conservative.  Like his extremely harsh actions recently against legal (state wise) Marijuana dealers.

Jesus...

Countless areas?

Off Limits?

Methinks you're just blowing smoke up my arse. All I see is wishful thinking, cornucopianism and ignorance. You simply don't know enough about any of these topics to be worth talking to about these topics.

There is something like 500 billion barrels of Oil in the Brakken Shale formation.  Is all of it recoverable?  No, but the US used about 6.25 billion barrels of oil a day.

This is just one area in the US.

Although I don't buy the actual math or estimates... this gives some pretty good fundamentals about all the untapped oil just in the US.

http://seekingalpha.com/article/256403-how-much-oil-does-the-u-s-have-in-the-ground-what-does-it-mean-for-investors

 

Also, it isn't supply that's raising prices... it's demand.

http://online.wsj.com/article/SB10001424052970203833104577072301052759854.html

...

How exactly do you replace oil from say Gahwar or any other conventional super massive - large conventional oil field which are still producing to this day with oil from fractured shale which depletes at a rate of 90% in the first year and 8% thereafter? How do you replace oil which is produced for a few dollars per barrel with oil which is only economical at prices above $60 per barrel? Facing reality here the majority of the oil in that formation will likely never be recoverable even at prices above $150 U.S.D. a barrel.

http://s1095.photobucket.com/albums/i475/westexas/?action=view¤t=Slide1-18.jpg

You say demand is the cause and yet why has supply not increased when oil reached historical highs adjusted for inflation? Why isn't it flowing any faster out of the ground with prices in real terms doubling and trebbling in the space of 10 years?

http://inflationdata.com/inflation/inflation_rate/historical_oil_prices_chart.asp

If you cannot bring yourself to say 'supply problem' then I may as well think of you as a ... and leave it at that.

Because Oil tends to work in a very monopolistic fashion thanks to Opec?

Note oil prices being fairly consistant despite various countries having huge shock to their production individually. 

Opec likes the situation how it is, it's about at right level of barrels and profits per year for them.

 

As for the replacement issues, your talking a small percent of a HUGE number, not counting untapped, undiscovered assets of the same kind.  Like it was said, the same thing happened with natural gas, and that is why it's so cheap right now.

 

That and Oil should stay above $60 a barrel pretty much permanently.