Comments on: Oil Prices: Up, Up and Away http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/ The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 22 Mar 2010 11:44:01 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: fallout11 http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-218992 fallout11 Wed, 12 Mar 2008 19:28:57 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-218992 Asia Times has an article today on the matter. It's worth a read: "Bad oil news here to stay" http://www.atimes.com/atimes/Global_Economy/JC13Dj03.html Asia Times has an article today on the matter. It’s worth a read:
“Bad oil news here to stay”
http://www.atimes.com/atimes/Global_Economy/JC13Dj03.html

]]> By: dean http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-212972 dean Tue, 11 Mar 2008 15:19:50 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-212972 Steve_K: <em>non sequitur</em>. The fact that the Street is confident and heavily invested in oil futures indicates that they believe prices will continue to rise. Whether they admit it or not, they believe that demand will continue to increase in the face of stagnant supply. I read that as a tacit admission that oil production is at or near peak. And they aren't going to lose their money. It will be a long time before oil is not a profitable bet. Steve_K: non sequitur.

The fact that the Street is confident and heavily invested in oil futures indicates that they believe prices will continue to rise. Whether they admit it or not, they believe that demand will continue to increase in the face of stagnant supply. I read that as a tacit admission that oil production is at or near peak.

And they aren’t going to lose their money. It will be a long time before oil is not a profitable bet.

]]> By: Steve_K http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-212582 Steve_K Tue, 11 Mar 2008 14:09:34 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-212582 "...investors currently view rising oil futures as a safer bet than anything else on Wall Street these days." There is all the proof you need that oil is not running out, nor has it "peaked." Those people are not going to lose their money. When they start throwing cash at battery tech and bio-fuel stocks, I will believe we're getting low on the black stuff. Now if someone could line up those stupid jerks single-file and have Jackie Chan kick each one in the stomach for artificially inflating gas prices, I'd be obliged. “…investors currently view rising oil futures as a safer bet than anything else on Wall Street these days.” There is all the proof you need that oil is not running out, nor has it “peaked.” Those people are not going to lose their money. When they start throwing cash at battery tech and bio-fuel stocks, I will believe we’re getting low on the black stuff.

Now if someone could line up those stupid jerks single-file and have Jackie Chan kick each one in the stomach for artificially inflating gas prices, I’d be obliged.

]]> By: Donal Fagan http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-212252 Donal Fagan Tue, 11 Mar 2008 12:03:11 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-212252 First, it was asserted in the article I linked. Second, I wonder exactly what is meant by disposable income. If disposable income = discretionary spending, then obviously some people are dropping a lot more cash at places like Starbucks than they did buying coffee in 1980. That would seem to indicate elasticity, except for the people basing their business on that discretionary spending. First, it was asserted in the article I linked. Second, I wonder exactly what is meant by disposable income. If disposable income = discretionary spending, then obviously some people are dropping a lot more cash at places like Starbucks than they did buying coffee in 1980. That would seem to indicate elasticity, except for the people basing their business on that discretionary spending.

]]> By: fallout11 http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-212212 fallout11 Tue, 11 Mar 2008 11:52:03 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-212212 In response to Mr. Fagan's point: 1980 was an unusual time, a period of temporary artificially-induced oil shortage (Iran undergoing a revolution, and an oil embargo in place against the US), and rampaging stagflation (interest rates running 14%, inflation even higher). Yet today's $105/barrel oil is still, even adjusted for inflation, more expensive than that in 1980. The real key to Donal's assertion lies in the increased fleet fuel efficiency of vehicles today versus in 1980, which is what makes that same 10,000 mile trip effectively "cheaper", thanks to using fewer gallons. The truth is that today's oil 'shortage' (supply falling short of meeting desired demand) is caused by natural limits, i.e. cannot be pumped, shipped, and refined faster, and hence is not likely to be a temporary condition. Like Simmons, Goldman Sachs also correctly publicly forecast $105/barrel oil a couple of years ago. They are now calling for $200/barrel in the next few years. Looks like the world has caught up with Simmons after all. In response to Mr. Fagan’s point:
1980 was an unusual time, a period of temporary artificially-induced oil shortage (Iran undergoing a revolution, and an oil embargo in place against the US), and rampaging stagflation (interest rates running 14%, inflation even higher).
Yet today’s $105/barrel oil is still, even adjusted for inflation, more expensive than that in 1980.

The real key to Donal’s assertion lies in the increased fleet fuel efficiency of vehicles today versus in 1980, which is what makes that same 10,000 mile trip effectively “cheaper”, thanks to using fewer gallons. The truth is that today’s oil ’shortage’ (supply falling short of meeting desired demand) is caused by natural limits, i.e. cannot be pumped, shipped, and refined faster, and hence is not likely to be a temporary condition.

Like Simmons, Goldman Sachs also correctly publicly forecast $105/barrel oil a couple of years ago. They are now calling for $200/barrel in the next few years. Looks like the world has caught up with Simmons after all.

]]> By: Donal Fagan http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-212162 Donal Fagan Tue, 11 Mar 2008 10:21:47 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-212162 In 1980 driving 10,000 miles cost 9 percent of your personal disposable income. Despite higher gas prices, in June 2007 it only took about 4 percent. Simmons is betting, literally, that sort of elasticity will take us to $200/bbl, but recession could undercut prices. http://www.sacbee.com/110/story/769574.html In 1980 driving 10,000 miles cost 9 percent of your personal disposable income. Despite higher gas prices, in June 2007 it only took about 4 percent. Simmons is betting, literally, that sort of elasticity will take us to $200/bbl, but recession could undercut prices.

http://www.sacbee.com/110/story/769574.html

]]> By: Stein X Leikanger http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-211912 Stein X Leikanger Tue, 11 Mar 2008 03:58:24 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-211912 Mr Simmons is a wise man: "We never understood the value of oil. We spent most of the 20th Century giving it away." The price of oil will never look back, as it dawns on people what it's actually worth, measured relative to all the materials we will no longer be able to manufacture when we have used it to drive Hummers to the supermarket. Mr Simmons is a wise man:
“We never understood the value of oil. We spent most of the 20th Century giving it away.”
The price of oil will never look back, as it dawns on people what it’s actually worth, measured relative to all the materials we will no longer be able to manufacture when we have used it to drive Hummers to the supermarket.

]]> By: Praxis http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-211382 Praxis Mon, 10 Mar 2008 21:58:33 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-211382 Matt Simmons appeared on CNBC Friday: http://youtube.com/watch?v=ECmelqdNyE4 Matt Simmons appeared on CNBC Friday:

http://youtube.com/watch?v=ECmelqdNyE4

]]> By: meocuchad http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-211352 meocuchad Mon, 10 Mar 2008 21:48:18 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-211352 Yay, let's have some more ethanol poured down our throats by the ignorant! Yay, let’s have some more ethanol poured down our throats by the ignorant!

]]> By: HEATHROI http://www.thetruthaboutcars.com/oil-prices-up-up-and-away/comment-page-1/#comment-211262 HEATHROI Mon, 10 Mar 2008 21:32:49 +0000 http://www.thetruthaboutcars.com/news-blog/oil-prices-up-up-and-away/#comment-211262 one reason oil prices are going up is the continuing collapse of dollar vs everything (althought that doesn't account for other commodity prices, maybe demand for them has already slowed ) one reason oil prices are going up is the continuing collapse of dollar vs everything (althought that doesn’t account for other commodity prices, maybe demand for them has already slowed )

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