View Full Version : Soaring Oil Price! Will we all survive?

22nd May 2008, 21:20
As I'm sure most of you are aware, oil hit yet another new high of $135 a barrel today.

I'm interested in peoples views on which UK companies are best placed to weather the storm, and indeed those most likely to succumb to the pressure.

22nd May 2008, 21:53
Perhaps mods could merge this with the "where are we heading? Thread?"

22nd May 2008, 22:01
Exact Sunfish...and why zooming on the the uk ..it's a planet concern..:eek:

Hermano Lobo
23rd May 2008, 14:32
The investment bank Goldman Sachs predicted this price on 6th May 2008.
It's the year 1973 all over again!
Airlines and travel companies will go out of business. Inflation will hit goods and services. The oil producers are happy not to increase production, since it keeps the price high and hence their revenues.

"Opec's President Chakib Khelil, Algeria's energy minister, says oil prices could hit $200 a barrel.

In Bangkok, the retail price of a litre of benzine at B40 baht is just around the corner....now that the crude oil price is hovering around $125 per barrel.

Can Opec prevent oil from rising further? The Opec chief says not much.

The Financial Times says his remarks suggest that Algeria wants Opec to continue to resist calls by the US and European leaders for the cartel to pump more oil to help ease prices.

It's not Opec's fault, the Opec chief says. The blame should be placed on the weak dollar and global political instability.

He told an Algeria's government newspaper: "I don't think that an increase in production would help lower prices, because there is a balance between supply and demand and the stocks of gasoline in the United States have recorded a surpluse and are at their highest level for five years..."

He blamed the high oil prices on the recession in the US and the economic crisis, which has touched several countries, a situation that has an effect on the value of the US dollar."

"Each time the dollar falls 1 per cent, the price of the b arrel rises by $4 and of course vice versa..." the Opec president said.

23rd May 2008, 17:38
$135 is still too cheap methinks

Can't wait for it to hit $200 a barrel. Then people will have no choice but to look for more viable alternatives.

I don't think it's a matter of if it will hit $200 mind you, more a matter of when it will happen.

European countries already tax the hell out of gas so I've barely seen a difference at the pump, and I don't think many industries will be too adversely affected. Besides, the dollar ain't worth anything anymore so doesn't matter how many dollars we have to pay for it.

The only real problem I can see is that this is exacerbating the global food crisis.

Captain Speedbird
23rd May 2008, 17:48
So where are all those who were lining up to rubbish anyone who suggested we were heading for $100/bbl when we discussed this last year? Anyone want to own up?

23rd May 2008, 18:13
Soaring Oil Price! Will we all survive?

Yes and No. It's all relative to the time-frame of interest.

A parallel question of interest is:

Will the Arab governments and leaders steering OPEC in this globally destructive course of political action survive the consequences of it?

Clearly they are playing off the political vulnerabilities of the US during the quadrennial Presidential election year cycle. Clearly they are reacting, in a punitive manner, to the US involvement in Iraq and other parts of South West Asia. Clearly many of the governments in the region are controlled by small cliques of entrenched leadership vulnerable to displacement if world enmity toward them passes a threshold - as yet undetermined - due to the social and economic upheavals their commercial practices are increasingly engendering.

23rd May 2008, 18:24
Anybody who thinks that OPEC should increase production should get hold of a copy of "Twilight in the Desert" by Matt Simmons. OPEC should cut production - yes it'll hurt now, but it'll work wonders for oil production later.

I suspect the OPEC leaders have just started to understand the geological problems of over-production.

23rd May 2008, 21:20
I agree. I've read it and it's an eye-opener. However, I wonder if the big Saudi fields, such as Ghawar, are too far gone for cutbacks to make any real difference. Remember how much water is pumped into Ghawar to maintain pressure - about 7 million barrels a day!