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Matt Simmons: Expect oil price shock within months

Discussion in 'Political Discussion' started by PressCoverage, Mar 27, 2009.

  1. PressCoverage

    PressCoverage Banned

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    (i said low prices were only temporary... note that even with a proposal of a huge investment in production, there will still be decline... it will only reduce the bleeding, not stop it... when we were clamoring for cheaper gas last summer, we were essentially rooting for the hastening of the effects of peak oil)

    Financier sees oil shock from credit crunch

    ... Matt Simmons, founder of Houston-based investment bank Simmons & Co, argues the underlying rate of decline of the world's aging oilfields is as much as 20 percent a year and only high levels of investment can reduce that to single digits.

    With credit tight and oil prices almost $100 a barrel below their highs last year, oil companies are unable to sustain previous levels of spending and the result is falling production, he said in an interview on Thursday.

    <snip>...

    Simmons says many OPEC oil producers will find it difficult to bring output back to previous levels once prices recover.

    "When you have an old oilfield whose flow is being maintained by extremely high levels of investment and you reduce production, you rarely if ever get back to where it was."

    Because of this and natural declines in output, oil use may not need to rise much before production fails to meet demand.

    "Unless oil demand falls by 10 or 15 percent per annum, which it is not going to do, then we don't need to wait for oil demand to come back before we have a supply crunch," he said.

    "Within a few months, we are going to realize our visible inventories are really tight -- squeaky tight -- and what would really be inconvenient is to see a recovery in the economy."

    He sees oil prices eventually exceeding last year's high: "Sooner or later we will burst through that like a hot knife through butter."
     
  2. elway7

    elway7 Third String But Playing on Special Teams

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    Peak oil!! the sky is falling!! Get a life!!
     
  3. PressCoverage

    PressCoverage Banned

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    Perhaps I can get one like yours, whereby you contribute zero, run your mouth, hit and flee...

    Run along now. There's a moronic new entry on your peakoildebunked blog...

    As a side note, i toured your homepage of choice there... seems every essay your hero writes includes the caveat: "just in case peak oil is true"...

    tool
     
    Last edited: Mar 28, 2009
  4. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    God & Prince Obama will save us, the land of milk and honey is right around the corner, Oh Jesus.
     
  5. tanked_as_usual

    tanked_as_usual Banned

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    who cares......I get 40mpg's and only drive 10K per year.....

    what does that work out to a $5 per gallon? $1250

    driving is still cheap unless you're an idiot that still drives a gas pig
     
  6. tanked_as_usual

    tanked_as_usual Banned

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    WTF do you add you little whining turd?????
     
  7. Real World

    Real World Moderator Staff Member

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    It's over $50 now. I see it going higher myself.
     
  8. STFarmy

    STFarmy In the Starting Line-Up

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    It definitely will. I also like (err rather am very irritated by) how the gas prices are rising again. There was, about a month ago, a very public inquiry about why gas prices were rising when oil was low. They dropped a little bit after that, just until the heat was off. Now they're going up again.

    I may not agree with Obama about a lot, but I hope that he will constructively help with the energy problem.
     
    Last edited: Mar 28, 2009
  9. elway7

    elway7 Third String But Playing on Special Teams

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    :D Nice! I love it!
     
  10. PressCoverage

    PressCoverage Banned

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    What have I whined about, hateful, intolerant RW wacko?
     
  11. elway7

    elway7 Third String But Playing on Special Teams

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    Looked in a mirror lately you left wing nut job the sky is falling TOOL!!!
     
  12. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    What is BO doing to help.......HMMMMM well he blocked offshore drilling, he continues to block development in ANWAR, then he is revoking leases in CO & Utah nad now there will be a 650B cap and trade carbon tax. whoopie!

    If you thought $4/gal was outrageous wait till you see what will happen under the Obama plan to solve the non existant MMCC 'problem'....:mad:
     
  13. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    As patsfan13 said, he's not doing anything constructive. The best thing he could do is work towards alternatives while SIMULTANEOUSLY increasing the supply from our country. He's doing nothing to increase our supply and doesn't appear to have started a significant initiative towards alternatives.
     
  14. STFarmy

    STFarmy In the Starting Line-Up

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    BF and pf13, I hear what you guys are saying. I too believe that we should use our sources of energy in the interim, but we do need to consider a post-oil world. Wind, solar, cold fusion, bat farts, whatever. I'm just hoping he does that.

    But I know where you guys are coming from, I'm concerned about this cap and trade stuff as well.
     
    Last edited: Mar 28, 2009
  15. PressCoverage

    PressCoverage Banned

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    Dude, you add nothing... I've yet to see you fashion together 3 coherant sentences in this forum... You're a troll, and you know it...

    Run along... Adults are talking.
     
  16. PressCoverage

    PressCoverage Banned

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    He's going to learn very fast that his energy policy is missing the mark badly.

    I have noticed he's stopped with the "clean coal" rhetoric, however. So I guess that's a positive step.
     
  17. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    No Nukes either, Anyone want to do the math on how many windmills and the cost/btu to replace coal & oil????

    People would dirty their pants if they knew the cost ......:eek:
     
  18. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    We wouldn't need to deal with a post oil world if we used all the available oil, coal and natural gas that we have.

    The nuclear pieces are, of course, very interesting. Wind and solar seem very unlikely to provide more that a tiny niche piece of the solution. I am, too, of the "all of the above" group for energy and I support spending on alternative technologies - but not at the expense of the other resources that Obama and the Greens want to just leave under the ground.
     
  19. STFarmy

    STFarmy In the Starting Line-Up

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    Hmm but aren't those sources all finite? Maybe not natural gas; I'm not sure though, anyone know that? I was just thinking long term, in case it turns out to be not-so-long as we think.
     
  20. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    The amount of coal in America is >3 times the amount of Oil ever discovered (in BTU's) IIRC... We can if we choose Liquify coal to produce oil & Gas...We choose not to.
     

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