Crude oil prices - how low?

**riffer** · 13th August 2008, 20:30

Wasn't the case when the US dollar was dropping in relation to the NZ dollar. The excuse then was to do with hedging. Don't believe any of it.

**Naki Rat** · 14th August 2008, 13:47

Overall we have taken advantage of the easiest and cheapest oil first, as is the way. From here on in we have to start dealing with oil supplies that are extracted from deeper seas (Southern Basin?), colder climates (Arctic), politically unstable (Russia, Nigeria, Middle East - take your pick), environmentally damaging (Alberta oil sands, sub-Antarctic?), biofuels (get real!), expensive extraction methods (pumping, repressurising reservoirs, oil sands, shale oil), small previously uneconomical oil fields, .....

The word from within the industry is that oil will never be cheaper (other than short term variations) than it is now. Enjoy it while we can afford it

52 minutes but essential viewing

**EJK** · 14th August 2008, 13:51

I presume the government will say.... It's double time!

**Murray** · 14th August 2008, 14:01

If you think petrol is expensive, try buying water. The good stuff (if there is such a thing) is EVIAN and I believe its nearly $8 a litre. Try spelling EVIAN backwards and you may see how we are all being duped!!

**mark247** · 14th August 2008, 15:17

Originally Posted by Naki Rat

Overall we have taken advantage of the easiest and cheapest oil first, as is the way. From here on in we have to start dealing with oil supplies that are extracted from deeper seas (Southern Basin?), colder climates (Arctic), politically unstable (Russia, Nigeria, Middle East - take your pick), environmentally damaging (Alberta oil sands, sub-Antarctic?), biofuels (get real!), expensive extraction methods (pumping, repressurising reservoirs, oil sands, shale oil), small previously uneconomical oil fields, .....

The word from within the industry is that oil will never be cheaper (other than short term variations) than it is now. Enjoy it while we can afford it

52 minutes but essential viewing

Even some of the more expensive places to get oil are not THAT expensive. For example

Nation US$/Barrel
Bahrain 40
Kuwait 17
Saudi Arabia 30
U.A.E. 25
Oman 40
Qatar 30
Canada's oil sands 33

Canada oil sands, they break even at $33USD a barrel, thats no way near the $116 it is at the moment..

**mark247** · 14th August 2008, 16:23

Originally Posted by Naki Rat

52 minutes but essential viewing

Just watched the entire thing, very interesting. The world is a changing place.

**Flatcap** · 14th August 2008, 20:31

Originally Posted by idleidolidyll

Although the oil companies are all making record profits, the way fuel pricing is set up allows them to plead poverty while minting it in reality.
.

They plead poverty? When did that happen?

Perhaps the government should give them back some of the 75% tax they charge on the price.......

**Naki Rat** · 16th August 2008, 09:52

Originally Posted by mark247

Even some of the more expensive places to get oil are not THAT expensive. For example

Nation US$/Barrel
Bahrain 40
Kuwait 17
Saudi Arabia 30
U.A.E. 25
Oman 40
Qatar 30
Canada's oil sands 33

Canada oil sands, they break even at $33USD a barrel, thats no way near the $116 it is at the moment..

The prices you are quoting are actual cost of extraction / production whereas the current market rates are a result of supply and demand forces, exacerbated by the speculation of those playing the futures market.
While the current price may seem to be exorbitant they are just an indication of what the world has to look forward to

That's why it's called the "futures market".

http://www.oil-price.net/ makes for an interesting reading, keeping in mind that it is their intention to sell oil futures.

**mark247** · 16th September 2008, 07:44

down to $95 a barrel...... looking good... for now.

**barty5** · 16th September 2008, 08:50

Originally Posted by mark247

down to $95 a barrel...... looking good... for now.

yeh but the price of fuel is still way out of sink to what it was as it was going up is price even with the dollar difference.

**Swoop** · 16th September 2008, 11:16

The stockmarket has taken a rodgering today...
It will be interesting to see what will happen. Anything but "up" will surprise me.

**mark247** · 16th September 2008, 12:51

Originally Posted by Swoop

The stockmarket has taken a rodgering today...
It will be interesting to see what will happen. Anything but "up" will surprise me.

and look what OPEC has done...

**Hitcher** · 16th September 2008, 12:57

Oil is a finite resource.

The world's demand for energy is rising.

Products that are in limited or short supply generally command a price premium related to their scarcity value. The only exception to this rule is diamonds, thanks to some superb marketing by De Beers and others.

The price of petrol at the pump will continue to rise, with the increases due in part to its scarcity and in part due to government taxes intended to discourage us from using the stuff by staying home and growing our own veggies.