High oil prices here to stay: OPEC

[NNN0LHI]

http://www.theage.com.au/articles/2004/05/25/1085461756752.html

Organisation of Petroleum Exporting Countries ministers say oil prices above $US30 a barrel may be here to stay, just four years after agreeing that $US25 a barrel was acceptable for both producers and consumers. Crude closed at a record $US41.72 a barrel yesterday in New York.

Members including Iran, Nigeria and Venezuela say they want prices at the top end of or above the official OPEC target of $US22 to $US28. Saudi Oil Minister Ali al-Naimi said crude at $US30-$US34 a barrel reflected the present costs of investing and maintaining oilfields.

"We need to find a new band as a reference that will guide investors," Edmund Daukoru, the adviser on oil to the president of Nigeria, OPEC's fourth-largest producer, said in Amsterdam, where energy officials from more than 50 countries met for three days. "It's unrealistic to think of $US22 as the floor."

New York crude oil prices have averaged $US29.17 a barrel in the past four years, compared with $US19.84 a barrel in the previous four years, in part because of agreements by OPEC to restrain supply. But OPEC members say that inflation and the drop in the value of the US dollar against currencies such as the euro mean higher prices are warranted.

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[Straight Shooter]

1. Uh-oh. bush will start connecting Venezuela to 9-11

Or maybe Alaskans are responsible.

One thing is for sure, cheney's energy plan and the fiasco known as the War on Iraq are going to make for a lot of unhappy SUV-owning voters out there.

[jmcgowanjm]

2. In a growth based economy such as ours

A 1-5% shortfall in oil supply will cause a recession. 
A 5-10% shortfall will cause a second Great Depression.
The effects of  a shortfall greater than 10-15% are almost
too horrible to imagine.
Once we pass the peak, oil production will decline by 1.5-3%
per year. Oil demand, however, will continue to increase
by 1.5-3% per year. This means that one year post-peak, we
will experience a 3-6% shortfall in oil
supply.
Ten years post peak, that shortfall will have increased
to 30-60%. Fifteen years post peak, that shortfall will
have increased to a staggering 45-90%.

Get Ready. The Titanic has hit the Iceberg.

http://www.lifeaftertheoilcrash.net/Introduction.html

[cliss]

5. You are so right.

We have an economy which lives, eats, breathes gas. Our growth is directly attributed to this precious resource. We owe our prosperity to it, but at the same time it is proving to be our downfall.

We're caught in a trap: we desperately need it for growth, but the more we rely on it, the more we are tied to it. Also, the more we use it the faster we deplete a FINITE resource which one day will run out.

We're like an alcoholic who needs a big swig of Jack Daniels just to start his day. He knows it will be the death of him, but to pour it down the drain is unthinkable.

Because of this dependence, we have subjected ourselves to humiliation at the feet of the Saudis, who are among the most brutal dictators on earth. We have been responsible for many thousands of new Al-Qaida recruits.

We invaded a sovereign country because of this dependence. The cost of this invasion is staggering. We will pay for many years through loss of lives, cost of maintaining the occupation, and continued warfare in the region.

Stan Goff wrote that the earth can only sustain about 2 billion people on its own. Through the use of petroleum products, we are now sustaining over 6 billion people. If we see a decline in the supply of gas, we should expect starvation and wars fought over gas.

[jmcgowanjm]

6. Ourpoverty will be brought hometo us to its fullextent only after the war

– Joseph A. Schumpeter

[SidDithers]

7. Mad Max / The Road Warrior - here we come...nt.

Sid

[denverbill]

3. $22 was fine when the dollar was strong.

But thanks to the big-spenders in Congress and the Whitehouse, and their tax cut giveaways to their wealthy benefactors, the dollar has dropped from .8 dollars to buy a euro to now costing 1.20 to buy a euro. Euros and most other currencies are now 50% more expensive than a few short years ago. It's no surprise that OPEC wants 50% more dollars for their oil.

[Bandit]

4. And the Oily Bush* Cabal does the ol' High Five

Yippee we're all gunna be filthy rich. Oil Industry Profits for the first quarter approached record highs. We certainly can see who the Patriots are. Loot the working man while they reward the filthy rich during "War". Stupid Freepers keep saying the market will regulate these crooks. I expect them not to bitch about fuel prices because it is what they want.

[underpants]

8. NPR Break down of $2 a gallon

I heard this the other day but can't find a link

Of a $2 Gallon of gas
$1 goes to the company that pulls it out of the ground
40-50 cents (60 in hgh price places such as Cali.) goes to the refinery
35-45 cents is taxes
5-15 cents goes to the retailer (if different than the refiner/driller)