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Permalink Reply by Max on June 1, 2012 at 6:23

Where does the plunge start? 

I've read that a lot of the oil produced today was drilled years ago when a barrel of oil was less than $10.  The wells have long since paid out and anything over $10 is extra money in the pockets of producers.  I think it's what some folks want to call windfall profits and tax these profits above the norm.

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Permalink Reply by GoshDarn on June 1, 2012 at 6:37

Max, unsure of your syntax.  What do you by:  "Where does the plunge start?"

Could you be a bit more clearer?

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Permalink Reply by Max on June 1, 2012 at 6:43

GD, I guess a real "plunge" would be oil below $25/barrel and gas stations having "gas wars" to unload their gasoline @ 35 cents/gal.

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Permalink Reply by GoshDarn on June 1, 2012 at 6:48

Okay, so do you mean "when" does the plunge start?  Or are you referencing "where" on a future's pricing chart?

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Permalink Reply by Max on June 1, 2012 at 14:55

Where would be a better answer. 

Oil @ $100, give or take $20 seems to be the norm.  I expect oil to increase in price over time, but should the US dollar lose it's position in the world, the price could go either way, depending on what the people of the world would trust and accept as "money".  There's not enough gold or silver in existence to become a useful exchange @ the volume of trade today.

The world, and us along with it, are moving toward cashless forms of currency.  What this will do to the "dollar" in terms of value compared to a commodity such as oil, nobody knows.  

Then there's the "if" problem.  What "if" something comes along and is so cheap, and plentiful, you can't give oil away?

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Permalink Reply by GoshDarn on June 1, 2012 at 15:25

Max, when it comes to investing and parking money, I personally try not to worry too much about wild hypotheticals.

(Why?)

Because there are endless what-if's and maybe-if's and spin-stories, etc.

Also, I seriously doubt that Buffett would even waste a half second on such weird thoughts.

I mean, a wise investor has to stay grounded, IMHO.

 

 

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Permalink Reply by Oklahomachic on June 1, 2012 at 7:39

Wow... I guess I am the only one concerned... To each their own.  Thanks for the honesty...

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Permalink Reply by Parkdota on June 1, 2012 at 9:31

The Euro crash due in part to the Greece mess hurt oil big time.  Jobs report today didn't help either nor did talk that China is in the midst of a slow down with potential credit bust.

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Permalink Reply by Hopeful About Natural Gas on June 1, 2012 at 9:45

I don't think we will ever see gas anywhere near $25 a barrel - maybe if the economy really crashed. Nor have not I heard that the companies are sitting on a lot of oil pumped when oil was $10 a barrel. They may have found it at $10 a barrel, but that's not anywhere near the market price today. But, I'd love to be wrong about ten dollar oil, so I'd read any link about it.

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Permalink Reply by Krkyoldhag on June 1, 2012 at 10:17

Those early wells have been sold and sold again ..like flipping houses and condos ..with price reflecting inflation with each flip.  So the operators who hold those wells today have current dollars in them.  And some are hocked to the gills..

Oil operators always did like to pyramid their deals.

So far as this not being a plunge..I think that a fall from $107 to $82 in just days is a plunge.  It sure is if you bought in at $107.

That's over a 25% drop in price with my calculator.

The market analysts are thrashing around over
Facebook losing price on their IP...who cares?  Does Facebook affect any of us?  Certainly not me.  But oil and its prices and availability does affect my wallet.

The good thing is that NG seems to be holding up better then last month.

I hope we have seen the bottom in NG prices.  And I don't think we have seen the bottom price for oil yet.

Another thing that affects me..Walmart ..now that they have out priced the mom and pop stores and they are no more (good riddance in many ways..they were greedy) I depend on them ..for too much.  If this fraud thing going on now has any teeth to it...I hate to see a possibility that we might lose stores.

I wanted to see them team up with truck stops across USA and open NG fueling hook ups.

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