Friday, October 24, 2008
Why Oil is going lower.
Many countries, like Russia, have borrowed to fuel their growth. They now need to sell oil to service that debt. Not being able to refinance is forcing those countries to sell oil at any price.
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7 comments:
Except that Russia has vast natural gas reserves, not oil.
In 2006 Russia was the second biggest oil exporter. I heard it is the biggest exporter today.
Oil will stay low as long as there is world wide recession, which will last as long as there is no credit, however I wouldn't count on that lasting more than a year or two, with the third world hungry for prosperity, count on oil going to the moon unless we start leading again with alternative energy and bring that to the emerging markets, if we don't someone else will.
as for the oil price I guess we didn't need those off shore drilling rights after all...drill baby drill
"as for the oil price I guess we didn't need those off shore drilling rights after all...drill baby drill"
you answered that already. " count on oil going to the moon "
so yes, the sooner the better
No you misunderstood again, only going to wind, solar, other alternatives and perhaps nuclear if we can make it safe and cost effective and control nuclear arms proliferation...will keep oil price down long term assuming we can export the technology cheaply to the emerging markets, drilling more will have no effect whatsoever on the oil price, it will only make oil companies richer.
First, so what if it makes a company richer?
Second, drilling more oil will lower prices - the law of supply and demand.
Third- I fully agree we need nuclear, wind, solar, coal, etc. The more energy sources we have the better.
Well I would rather use our tax dollars for education and health care or to cut taxes rather than make oil companies richer, Republicans have given billions in tax breaks to oil companies they don't deserve and trillions to war companies and investment banks and virtually nothing to clean energy and bio agriculture.
Wrong again law of supply and demand means oil prices go up unless we replace oil with clean energy, oil companies don't even use the offshore drilling rights they've had for a decade because its been too expensive to drill offshore they need 150 dollars plus per barrel to do that.
We don't need coal, however we should invest in clean coal technology so we can sell it to the Chinese before they destroy the planet with their new coal plants going up at the rate of one per week or month or whatever it is. They will soon surpass us as the World's biggest polluter in yearly pollution output though they still have a long way to go to beat us as the number one polluter per capita... we should hold that title for a while longer unless we go green and bio like they're doing in Europe...yet with Obama and a filibuster proof democratic senate and a majority in the house we should move in that direction, even surpass Europe, so I have hope.
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