6.8 Million paid for a #5 ...

[klott]

Gerry, are you against offshore drilling?

[klott]

Gerry, are you against offshore drilling? If yes, why?

[Michael Larson]

Originally Posted by gbeaumont

Robert, here is the current breakdown, the largest part of the cost is the crude price ($2.22 ga)

I can't wait to hear the screams if they find oil under Michaels favorite fishing hole

Regards

Gerry

If there is oil under my fishing hole let them pump it.

Now why again is FL so reluctant to drill for oil offshore?

With the thousands of oil rigs in the ocean what makes FL untouchable?

Hmmmm?

[klott]

Maybe their afraid the Cuban boat people will use them as rest stops!

[gbeaumont]

Originally Posted by mlarson

If there is oil under my fishing hole let them pump it.

Now why again is FL so reluctant to drill for oil offshore?

With the thousands of oil rigs in the ocean what makes FL untouchable?

Hmmmm?

Michael, personaly I have no problem with it at all, but if anyone seriously believes that drilling new fields will lower prices their nieve, take a look at North Sea oil (Brent crude) that produces less gasoline per barrel and is only $1 per barrel cheaper, I believe that Gulf crude is also of fairly low quality (like Texas crude), opening new fields (unless very, very high quality crude) will have little or no effect on gas pricing.

Regards

Gerry

[Michael Larson]

Gerry, it's simple market economics not nievete!

Brent crude's price is a result of the world market price.

If the supply relative to demand goes up the price will come down.

We are on a path to destruction in economic terms and we have no one to blame but ourselves.

If 2/3 of the cost of a gallon of gas is the crude oil, the price will come down with the drop in crude prices.

It just like HIs, flood the market and everyone's prices go down.

[gbeaumont]

Originally Posted by mlarson

Gerry, it's simple market economics not nievete!

Brent crude's price is a result of the world market price.

If supply goes up the price will come down.

"Simple" market economics has never applied to energy costs, an will not do so in the future, the decline in future production in the middle east in the next 20-30 years will drive down supply.

We need plan "B"

Regards

Gerry

[Michael Larson]

Originally Posted by gbeaumont

"Simple" market economics has never applied to energy costs, an will not do so in the future, the decline in future production in the middle east in the next 20-30 years will drive down supply.

We need plan "B"

Regards

Gerry

Gerry, that simply is not true.
Do you belong to the Sierra Club?

The market will determine the price.

What do you offer as evidence?

I'll hold my ammo for now.

[gbeaumont]

Originally Posted by mlarson

Gerry, that simply is not true.

Many people smarter than you and I would disagree (go Google "Hubble curve") the State of Dubai expects it's reserves to have been exhausted by 2030.

Do you belong to the Sierra Club?

I don't see why that would be relevent, but no

The market will determine the price.

Agreed, but historically the more energy we have the more we use, BTW as the Chinese economy ramps up and a billion citizens want cars, where does their oil come from?

What do you offer as evidence?

See above/ Common sense

I'll hold my ammo for now.

Bring it on

Regards

Gerry

[Michael Larson]

Please explain your "common sense", after all the world seemed flat at one time by common sense.

Do you mean the 50 year old prediction of the Hubbert peak?

BTW-neither us us knows just how smart the other is. Smart ***** maybe

[gbeaumont]

Originally Posted by mlarson

Please explain your "common sense", after all the world seemed flat at one time by common sense.

Simple, the crude oil that we are pumping out of the ground is a finite resourse, ergo it will run out.

Do you mean the 50 year old prediction of the Hubbert peak?

Yes sorry I got the name wrong (I do this crap from memory) his prediction of the decline in US production in the early 70's was spot on.

BTW-neither us us knows just how smart the other is. Smart ***** maybe

Most definately

The equation is real simple we have a finite supply and a growing market, there is no way it can be sustainable. ergo pricing cannot fall.

Regards

Gerry

[Michael Larson]

Originally Posted by gbeaumont

The equation is real simple we have a finite supply and a growing market, there is no way it can be sustainable. ergo pricing cannot fall.

Regards

Gerry

More like this:

A. (unknown reserves) +(increasing demand)=(unknown future price)

B. (known reserves) - (untouchable oil)= price increase

Which is the better bet?

BTW- Hubbert peak is a Theory not proven by any means

[klott]

Originally Posted by gbeaumont

Bring it on

Regards

Gerry

China's oil will come from Florida.

[Michael Larson]

Originally Posted by klott

China's oil will come from Florida.

Or a bit farther south.

[gbeaumont]

Originally Posted by mlarson

More like this:

A. (unknown reserves) +(increasing demand)=(unknown future price)

B. (known reserves) - (untouchable oil)= price increase

Which is the better bet?

BTW- Hubbert peak is a Theory not proven by any means

Hubbert is the best model we have, are your "beliefs going to be a problem again Michael, should we take this straight "downstairs"?

Try plan "C" reduce consumption of fosil fuels and develope (or hasten developement) of sustainable energies.

Regards

Gerry