This can't be good!

[Dee8go]

Triple-digit oil prices to become norm: analyst

By Steve Gelsi, MarketWatch
Last Update: 2:35 AM ET Oct 2, 2007Print E-mail Subscribe to RSS Enable Live Quotes
NEW YORK (MarketWatch) -- Oil prices of at least $100 a barrel are expected to become the norm as early as next year, as conventional supplies continue to decline and consumption in the developing world rises, CIBC chief economist Jeff Rubin said Tuesday.
"We're in a world of triple-digit oil prices for the foreseeable future," Rubin said at the CIBC 2nd Annual Industrials Conference. "Whether it's $100 or $140 a barrel ... is up to debate, but the bottom line is we're in the bottom of the ninth inning of the hydrocarbon age."
Rubin said higher oil prices will spur technological innovations, as well as growth in nuclear power and biofuels.
"I'm not sure in 50 or 60 years, oil will still have the role in the global energy market that it does today," he said.
Rubin said more of OPEC's production will go toward fueling its own energy needs.
Despite Wall Street's obsession with oil consumption by China and India, oil use in Russia, Mexico and the OPEC nations outpaced the world's most populous country last year.
In Venezuela and Saudi Arabia, for example, the retail cost of gasoline ranges around 25 cents a gallon -- cheap enough to consume in ever-larger quantities to fuel growth.
At the same time, oil-rich countries such as Kuwait and Mexico are starting to see declines in major oil field supplies, he said.
By 2012, Canadian oil sands could become the single largest source of new oil supply for the U.S. as Mexico's supplies become depleted, he said.
Recent oil sands acquisitions by Royal Dutch Shell (RDSARDSA
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MRO) could be the "harbinger of things to come," he said.
Six of the largest oil suppliers to the U.S. are poised to cut their global exports by nearly 2 million barrels a day by 2012, Rubin said.
The projected cut -- amounting to 7% -- by Mexico, Saudi Arabia, Venezuela, Nigeria, Algeria and Russia, "reflect the growing struggle in these countries to grow production and manage their own soaring rates of oil consumption," Rubin said.
Canada's oil sands production is expected to increase to 2.3 million barrels a day by 2015, up from about 1.1 million barrels a day in 2005, according to the U.S. Energy Information Administration.
Rubin's remarks come as big oil companies such as Exxon Mobil (XOMXOM
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XOM) continue to forecast plenty of fossil fuel for the world's needs by at least 2030. See full story.

[Carleton Hughes]

No,'tis not good.
But never fear,our concienscious and ethical elected representatives will be as bastions of righteousness against the greedy onslaught of the profit-mongering oil companies who,thanks to "free market capitalism"are holding us poor hooples in thrall to a soulless cupidity and desire for obscene profits that leaves a putrid stench in every honest nostril.........

[Dee8go]

I'm starting a company that makes yokes and harnesses to hook onto the front of cars.

[Dee8go]

Or else cutting the floorpan out of mine. Yubba dubba dooo! We'll be driving cars like Fred Flintstone and Barny Rubble.

[LUVMBDiesels]

What they don't mention are the middle men who trade the price up in the commodities market. Companies like Morgan Stanley are huge traders in oil.
MS actually owns a fleet of tankers and huge oil tanks in the NY/NJ area.
They buy and hoard until they can make a huge profit! I know, I worked there... Oil $$ was the only thing keeping MS afloat last quarter!

I'm sure that once Bio-D gets going, MS will fill their tanks with bio fuel and jack up the price on that as well...

[Dee8go]

There will be guys in three piece suits going around to all the Chinese restaurants in NY taking their WVO! That's a funny thought.

[LUVMBDiesels]

Originally Posted by Dee8go

There will be guys in three piece suits going around to all the Chinese restaurants in NY taking their WVO! That's a funny thought.

No, but they will be hoarding the new vegetable oil and selling it to the restaurants at $100.00 a barrel!

MS had been known to "park" tankers off shore until the price goes up. It has something to do with it not being on American soil (tax dodge I think)

[R Leo]

To add to the confusion, determining reserves is an inexact science. Additionally,s oil producing countries and oil producers constanty jack around with the figures on their reserves in order to look better politically and, in the case of corporations, look better on their balance sheets for shareholders.