Oil below USD$20 per barrel is not realistic nor sustainable


ricohflex

Senior Member
Feb 24, 2005
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USD$20 per barrel? Some guess it will drop to USD$10 per barrel?



These 2 above reports say $20 per barrel.

Then Reuters report says different


This report says $2 per gallon.

1 barrel = 42 US gallons of oil. Which means $84 per barrel.

There is a lot of difference. One of the news reports is wrong - probably the one from Reuters.

So I guess the standard of journalism is not what it used to be.

This is artificially manipulated. In a price war Saudi Vs Russia.
Oil is not only for powering ships, planes and motor vehicles.
Components of Oil are needed for lots of materials to make a wide range of products.
Oil is a fossil fuel that takes millions of years to form.
Oil is a wasting asset. Once you use it up, it is gone forever.
Humans cannot afford to wait another few million years for new Oil to be formed.

Depleting reserves could become a pressing issue 50-100 years from now.
Then the price of Oil will sky rocket to very high.
Wars will be fought over Oil.
Nations will be invaded (on a pretext) because they have Oil.

Electric cars - hmm... maybe in the long run.
Although Tesla, BYD and others like Volvo have made electric cars.
It is still a very long way before all the vehicles (in the whole world) using internal combustion engines are replaced by electric vehicles.
Especially for very heavy tonnage goods transport trucks such as Scania and Isuzu. They are just starting to look into it.
You need something to generate that electricity.
If not nuclear, then another fuel?
Hydro electric dams are not a good idea. Too many dams destroy the rivers and the eco-system downstream.

Electric planes? Don't hold your breath. No one will dare to fly in one as a passenger.
 

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TonyN

New Member
Mar 1, 2020
16
2
3
31
USD$20 per barrel? Some guess it will drop to USD$10 per barrel?



These 2 above reports say $20 per barrel.

Then Reuters report says different


This report says $2 per gallon.

1 barrel = 42 US gallons of oil. Which means $84 per barrel.

There is a lot of difference. One of the news reports is wrong - probably the one from Reuters.

So I guess the standard of journalism is not what it used to be.

This is artificially manipulated. In a price war Saudi Vs Russia.
Oil is not only for powering ships, planes and motor vehicles.
Components of Oil are needed for lots of materials to make a wide range of products.
Oil is a fossil fuel that takes millions of years to form.
Oil is a wasting asset. Once you use it up, it is gone forever.
Humans cannot afford to wait another few million years for new Oil to be formed.

Depleting reserves could become a pressing issue 50-100 years from now.
Then the price of Oil will sky rocket to very high.
Wars will be fought over Oil.
Nations will be invaded (on a pretext) because they have Oil.

Electric cars - hmm... maybe in the long run.
You need something to generate that electricity.
If not nuclear, then another fuel?
Hydro electric dams are not a good idea. Too many dams destroy the rivers and the eco-system downstream.

Electric planes? Don't hold your breath. Non one will dare to fly in one as a passenger.
Are you comparing crude oil (oil extracted from nature reserve - for lack of better word) with processed oil (gasoline)?

Crude oil goes to refinery plants (I believe you could tell some big ass refineries in SG) and is processed into gasoline and diesel (powering cars) and ingedients for Johnson's lubricant and Nivea's moisturizer and plastics and a thousand more things.
 

ricohflex

Senior Member
Feb 24, 2005
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sing
There is no such thing as unwanted oil. The current state of affairs is an artificial temporary creation due to Saudi vs Russia spat & Covid-19 lock down depressing demand. At some point, all countries that have implemented lock down, have to come out of it. The cars, trucks, ships and planes will need oil to start moving again. Oil is a wasting asset. The current low price of oil is a bonanza for countries that have the resources and storage to buy up as much oil as possible. In 50 to 100 years, oil will run out. No more. Then the price of oil will be phenomenal. Countries may go to war over oil. Wind energy, hydro-electric dams, solar energy as alternative sources - don't hold your breath. The only chance is if scientists achieve commercially viable fusion energy process.


 

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