Oil passes $107, setting another record

[Lone_Star_Dem]

Source: CNN Money

NEW YORK (AP) -- Oil prices hit $107.44, a new inflation-adjusted record and their fifth new high in the last six sessions.

Meanwhile, gasoline prices were poised Monday to set a new record at the pump, having surged to within half a cent of their record high of $3.227 a gallon.

The national average price of a gallon of gas rose 0.7 cent overnight to $3.222 a gallon, 69 cents higher than one year ago, according to AAA and the Oil Price Information Service. Last May, prices peaked at $3.227 as surging demand and a string of refinery outages raised concerns about supplies.

That record will likely be left in the dust soon as gas prices accelerate toward levels that could approach $4 a gallon, though most analysts believe prices will peak below that psychologically significant mark. In its last forecast, released last month, the Energy Department said prices will likely peak around $3.40 a gallon this spring; a new forecast is due Tuesday.

Read more: http://money.cnn.com/2008/03/10/markets/bc.oilprices.ap/index.htm

[jpak]

1. So why does Big Oil need billions in tax break goodies at these prices???

:shrug:

[dipsydoodle]

2. As usual - It's not what you know

it's who you know.

[zonmoy]

3. most likely the price increases are because the oil is getting more

expensive to pump and find new sources. as it runs out and the new resources aren't created or found then the prices will go up.

[wildcat78]

10. They have to work for the oil now

First, I want to say that I'm in no way defending the oil companies profits. However...

there is a number of oil wells in the intermountain west. In Wyoming, the oil is 20000 ft down. In N. Dakota, it's 15000 ft down. And, in Colorado, they have to deal with shale oil. None of this inexpensive. It takes money to drill for this oil. I, for one, would rather have them drill for the oil here in the states than overseas...

[happyslug]

11. Oil companies could drill down to 20,000 feet n 1938

And oil if it goes below 20,000 feet is converted to natural Gas by the heat of the earth. Thus you will hear of Natural gas wells 50,000 feet or more in depth, but Oil wells end at 20,000 feet. One drill you can pump in water to push the other wells, but this has been known since the 1860s (Often called a Secondary extraction methods). Nitrogen is also pumped into the Well to force out droplets that the water leaves behind (Often by the water trapping the oil in a position that the oil can NOT move nearer the pump. Generally nitrogen injection is the last thing a drill owner will do as the oil well goes down in production. It is expensive, but none of it is as near as FINDING new oil wells, and that has been getting harder and harder to do.

AS to Shale oil, that is NOT pumped, but mined. The ore is then processed into oil. The recovery is about two barrels of oil for every barrel used to mine and refine the ore. Canada in its Alberta Fields are mining the richest shale ore that exists, but it is still requires one Barrel of oil to produce two barrels of oil. AS we use up Alberta's richest shale oil field that Ration will drop. Most US Shale oil looks like it will require more than one barrel of oil for each barrel pumped. Thus unless some sort of foreign energy source is used (i.e Nuclear power) no one believes Shale oil in the US will ever be mined given that the power from a Nuclear plant would be more efficiently used to power electric trains to move people and goods around then using the Nuclear power to produce oil to move those same people and goods around. Thus the old Joke about Shale Oil, Shale oil is the Oil of Tomorrow.. and always will be.

[endarkenment]

4. peak oil meets dollar deflation

we are in the midst of an economic shitstorm.

[happyslug]

12. When oil first started to go up around 2002, at first it was the drop of the dollar

When oil first started to climb above the $26 Dollar a barrel OPEC suppose supported, for the first six months or so it was less an increase in oil prices then a decline in the Dollar. Only after about six months did that change, and oil started to climb NOT only for the US but also for Europe (In that first six months, European Oil prices held steady or dropped do to the raise of the Euro over the Dollar).

I see that happening again, not only is Oil raising so is the Euro, and that is NOT a good sign.

[KansDem]

5. At this rate, I won't have enough $$$ to buy that beer the media told me I wanted to have with Bush!

F**k the US media!

It's time to bring back the :finger: smilie...

[maseman]

7. Great line Kansdem!

[KansDem]

8. Thanks!

:dem:

on edit: I have my moments...they're few and far between but I do have moments...

[ConcernedCanuk]

6. Park the Empire's War-Machine - that'd save a few million gallons

.
.
.

And millions of lives.

[TexasLawyer]

9. Bush's base

George W. Bush: "What an impressive crowd: the haves, and the have-mores. Some people call you the elite, I call you my base."

Bush's base is profiting handsomely. Mission accomplished.

[Delphinus]

15. Is this an exact quote?

Where was he when he said this? I'd never heard it before - my god!

[Tesha]

16. Yes, that's a pretty-exact quote. I'm sure Google can find it, probably with video. (NT)

[guitar man]

19. yep

right here:

http://www.youtube.com/watch?v=mn4daYJzyls

[bonito]

13. Screw the bank I'm getting direct deposit to my gas station!

[Xenotime]

14. This is fucking out of control. Something is going to break.

[Bigmack]

17. $108.10 on the NYMEX at 9:20 EST... nt

[RebelOne]

18. According to this story, it's $109.72

http://biz.yahoo.com/ap/080311/oil_prices.html?.v=15