$200 bucks a barrel

[SoCalAprch]

Just heard on the news that $200 per barrel was possible by the end of the year. What does everyone think the affect will be on operations?

[mikecweb]

I think they are trying to scare people.

[SoCalAprch]

Originally Posted by mikecweb

I think they are trying to scare people.

Thats exactly what I told my wife! Her recourse was "thats what you said when they said oil may be over $100 a barrel in a couple months"


But not asking if it will happen just what you think would happen if it did go that high...

[flymo]

There will be a lot of us looking for employment, probably in a different field.

[ljg]

Airlines may actually have to raise ticket prices on the dummies to a realistic level at 200 bucks per barrel.

[SoCalAprch]

granted it will hurt the aviation world but what would the out come be? What do you think the 121 world would look like if it happened? A few select US international players and a couple domestic players?

[mikecweb]

Exxon Airways.

[SoCalAprch]

Originally Posted by mikecweb

Exxon Airways.

Sad but probably true.

[BajtheJino]

The $200 barrel of oil was a Goldman Sachs forecast. Article in the WSJ yesterday about this. Some other analyst at some other house made a prediction of $40 a barrel in two years. Go figure.

On another note-hasn't Goldman Sachs done enough to damage our economy without them fanning the flames of speculative panic?

[88MPH]

Re-regulation

[Propilot]

Even harder to get on with Netjets.


;]

[Hootie]

Speculation. Too many existing ways to develop a barrel of oil for $100 a barrel. Everything goes boom or bust at some point.

[PanJet]

Unless what they say about peak-oil is true and already happening, I doubt you'll see $200 in the next year. Supply and demand won't allow it.

[akrand]

Fox news was talking about this last week. They were thinking it could be $200 a barrel next summer and then cost us $10 a gallon at the pump. I really hope that doesn't happen.

[B767Driver]

I thinks there's been a huge bubble that's been created waiting to burst.

But if it does hit $200, this country's going to look like Moscow and Eastern Europe.

[holyshirt]

Originally Posted by B767Driver

I thinks there's been a huge bubble that's been created waiting to burst.

But if it does hit $200, this country's going to look like Moscow and Eastern Europe.

Yea I can see that too. What a shame... this really needs to be THE priority for our country I think. If this country wants to avoid the troubles involved with ever rising gas prices then it would invest and spend on making us completely energy independent and forget about oil as much as possible. And what is the oil industries explanation for the record profits while we get shafted with high prices? I dont buy any of it.

[Airdale]

All we need is an adminstration worth a damn. I don't think we'll see oil get any higher than what it is now. If you've noticed, we had steady increases then suddenly its leveled off and actually dropped a few bucks per barrel. These A-holes at the oil companies are just toying with us.

We elect our government to manage our economy and finances and they're doing a horrible job at it. If we didn't piss so much money away in Iraq, we probably wouldn't have this problem. This economy sucks.

[mikecweb]

That's a nice thought but this country's economic turmoil stems from more then just the war in Iraq.
But hey everyone needs an easy scapegoat.
Oh and btw the world isn't going to magically be a better place in January. Yes this administration has made mistakes, a majority of which were supported by those currently running for president.

[Airdale]

Originally Posted by mikecweb

That's a nice thought but this country's economic turmoil stems from more then just the war in Iraq.
But hey everyone needs an easy scapegoat.
Oh and btw the world isn't going to magically be a better place in January. Yes this administration has made mistakes, a majority of which were supported by those currently running for president.

Thanks for the lesson in current economics.

[frequentflya]

It wont hit 200, that is like 6-7 dollars a gallon and the Oil Industry would send a lot of countries into some really bad depressions. I think it is going to stay right where it is as long as we're in the Iraq war, China is demanding huge amounts of energy and South American oil countries continue to have civil unrest. To what B767 said, I don't think it is a bubble, I think we are just having to compete more over less fuel.

[B767Driver]

Originally Posted by frequentflya

To what B767 said, I don't think it is a bubble, I think we are just having to compete more over less fuel.

There's no supply issues and the big oil companies are not setting the price. It's speculators running up the price compounded with the dollar valuation. To me, the principles add up to a bubble.

[Doug Taylor]

Originally Posted by B767Driver

I thinks there's been a huge bubble that's been created waiting to burst.

My sentiments exactly.

Oil futures sound a lot like real estate did last year.

There is NO supply problem, only speculation on a supply problem.

[wingnut]

First, the economy is almost always a self-fulfilling prophecy. As long as people believe that oil will hit $200/barrel, speculators will buy now under the assumption oil will hit $200/barrel because somehow have already come to accept the fact the oil will be at that price. As soon as people believe that oil will fall in price, investors will back off. Also, as said before, it's very common for investors to jump at commodities when the dollar is worth nothing.

The CEO of BP said about nine months ago that he believes oil will fall back to around $40/barrel within the next 5 years. I don't think it's a coincidence that the oil forecast of $200/barrel is set out by Goldman Sachs, one of the largest investment firms in the world.

[Lee D]

I agree with the reasons for current prices. I do hope it is a bubble. Though the real estate and tech bubbles were more in the West. This is more of a world wide thing and might be more complex. Personally I don't think even existing prices can be sustained, long term, in the world economy. The effects are trickling down to nearly everything and something will give at some point. $200 would be very messy. I doubt current average earnings in the US & world could sustain that level for long.