Could oil fall to $50 a barrel by year's end?
That's the prediction of one industry executive, who adds that cheaper crude doesn't necessarily mean lower gas prices.
Oil and gas prices have been climbing, but at least one industry leader believes oil prices may soon make a dramatic drop.
Speaking on CNBC, Gulf Oil CEO Joe Petrowski said he imagines oil moving down to around $50 a barrel by the end of the year.Petrowski said the decline is simply a matter of supply. "We're producing record amounts of oil and natural gas in the United States and in Canada," he said. "The market's well supplied. In fact, OPEC supplies are higher. As the price goes down, those who are targeting revenue actually have to sell more oil to maintain revenue."
Other factors bringing down oil prices, according to Petrowski, are slowing demand in China, an excellent supply-and-demand situation with crude and natural gas, more efficient cars and the rising use of alternative fuels.
"Traveling is picking up, but we're using much less oil," he said. "In fact, we're using no oil in the energy sector. Natural gas is taking a lot of the heating sector away."
But Petrowski also emphasized that $50 oil will not translate into $2-a-gallon gasoline, because that oil still must be transported and refined. "The fact that we're relying on railroads and trucks to move product from refinery markets to consumption markets, rather than pipelines," he said, "is adding another 35 to 40 cents" to the per-gallon price of gas.
Petrowski said other issues that can sway oil prices are problems with refineries in the Chicago and Gulf Coast regions as well as continued political unrest in the Middle East, which could spread and adversely affect oil producers in the region.
Last week, we got the agonizing news that a defenseless white man who had been beaten severely by a gang of six Black teenagers succumbed to his injuries and died. He was a living breathing person just as you and I. He was . He was walking on a public street not bothering anyone. His cowardly attackers charged at him from behind, and all SIX of them beat him. After the cowardly attack, Mr. Mahaney was so traumatized that he was afraid to go out of his home. He lived for another year but collapsed, first psychologically than physically, under the weight of living with his injuries and caring for his elderly mother.
The police in Cincinnati have called this a “boredom beating” perpetrated by a gang of black teenage boys seeking entertainment. Decent people ask if this was an isolated incident and why these boys would do such a thing out of boredom.
Hand-wrung apologies from “sagacious” social scientists aside, the answer is quite simply because they “felt like it.”
”Boredom beatings” are the natural extension of giving these people EVERYTHING. They are born in public hospitals; their teenage mothers and Baby Daddies pay nothing. They are taken home to public , live rent free, go to government schools where they pay nothing, and are taught to hate America (especially White America and that when one of them is killed by a would-be victim, it’s the victim’s fault.) They see white people not as their neighbors and fellow Americans, but as their oppressors.
They are fed free of charge three times day at government , given clothing, given free transportation to and from school, and promoted from grade to grade by their height and not their academic achievement.
They are fed at home with free Welfare and SNAP cards. When they get arrested, they get free lawyers. When they get pregnant or father a child, they often give the child to their 40 year old grandmother and roam away to impregnate or become pregnant again.
After all of this free stuff is delivered to their feet, they come to believe they are also entitled entertainment. When they realize their government cradle-to-grave package doesn’t include entertainment, beating defenseless white people to death becomes the recreational activity of choice for some – not all – but some of these people. To keep this cycle in motion, they sell their vote to their Democrat enablers every two years. Any questions?
Don't worry, the oil companies won't let that happen! They'll just make up some phoney reason to raise the price, AGAIN!!
We'll get a global recession if oil goes to $80 a barrel? If the U.S. population gets a huge relief at the pump, we'll have tons of extra dollars in our pocket. The opposite of a recession is what will happen.
"The fact that we're relying on railroads and trucks to move product from refinery markets to consumption markets, rather than pipelines," he said, "is adding another 35 to 40 cents" to the per-gallon price of gas."
OK, so $2.40 a gallon vs $3.75?
Whats with these experts? Every other day I hear different facts. Not enough drilling, too much drilling, There are refineries working at 75% and others shut down to keep supply low. Oil companies are their own superpowers,
The government should drill on government land and set the price of oil @$80.00 bucks /barrel.
Set-up a refineries at strategic locations incase oil goes through the roof! Maintain a set price that everyone is OK with. The Opec said they could live with 80 a barrel. Take the profits from the refinement and pay-down our debt. It is a win-win for everyone!
I guess that is to hard to understand that congress doesn't want our natural resources destroyed. I agree with that, but if you drill responsibly by the government, then they can only blame themselves if something goes wrong.
Again win win!
Stay thirsty my friends!
I don't buy that number for a minute. Nothing short of another recession will take prices that low... $50 is basically the incremental cost of supply where some production would be idled because it was unprofitable. If the most expensive oil only costs a little north of $50/barrel to produce, why does it currently trade for north of $100 as opposed to say $55? Because at $55 demand would seriously outstrip supply...
Oil has been north of $90 for so long because that's what price it takes to encourage all of these efficiency gains and to limit demand to the available supply. The global oil market is big and growing and can easily absorb extra US production without anywhere near the price drop he's talking about.
You will have lunch with Marylin Monroe before you get $50 oil. Supply & demand will prevail and consumption is high
right now and there is a lot of people that will hit the road since winter was extended this year almost until June 2013.
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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