Crude Oil Climbs to Record $93.80 as Mexico Cuts Gulf Output

[Emillereid]

Source: Bloomberg

Crude Oil Climbs to Record $93.80 as Mexico Cuts Gulf Output
By Mark Shenk



Oct. 29 (Bloomberg) -- Crude oil rose to a record $93.80 a barrel in New York after Mexico shut a fifth of its production and the dollar fell to a record low.

State-owned Petroleos Mexicanos, or Pemex, halted about 600,000 barrels a day of output as a storm passed through the Gulf of Mexico, spokesman Carlos Ramirez said in Mexico City. Early today, the dollar dropped to $1.4377 per euro, the weakest since the introduction of the 13-nation common currency in 1999.

<snip>

Crude oil for December delivery rose $1.67, or 1.8 percent, to settle at a record $93.53 a barrel at 2:46 p.m. on the New York Mercantile Exchange. Futures climbed to $93.80, the highest intraday price since trading began in 1983..

<snip>
The oil market ``may be only one or two events away from'' $100-plus oil, Daniel Yergin, chairman of Cambridge Energy Research Associates, said in remarks prepared for a conference today at Georgetown University...more at link...

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=amCTYd_2TWL8&refer=home#

[depakid]

1. Quoting Yergin

That's rich.

Actually, I'm glad their doing that- don't want the traders to clue into what's really going on. Not just yet- the last thing we need is an all out panic at this point.

[physioex]

2. Screw this...

I am sick an tired of having to live in this oil based economy. Our only hope is faster development of renewable energy sources.

[NickB79]

4. What renewables would that be?

Nothing we have is scalable to the point that it could make a dent in the 20 MILLION barrels of oil we burn each DAY while maintaining our current way of life. We have renewable technology, just nothing that can power much more than a few lightbulbs for each US citizen, much less let us watch TV on our plasma screens, drive a car, or chat online like we are now. We also don't have the time left to build the millions of wind turbines, millions of solar panels, or hundreds of nuclear reactors we would need to keep up the American way of life.

For example, in 2005 the US produced enough ethanol to replace oil use in the US for 6 DAYS. Millions of bushells of corn, 20% of our corn crop, and millions of acres of land, to produce 6 days worth of fuel.

If we are to survive the coming catastrophe in any recognizable shape, we need to stop hoping for miracle technology that will be invented vaguely at "some time in the future", and cut our energy useage DRAMATICALLY NOW!!!

Of course, I don't think we will do this, which is why Peak Oil is going to turn most of us into paupers.

[IDemo]

5. You mean the windmill powered electric car won't change everything?

:sarcasm:

[NickB79]

6. I'll look so pimpin' driving that around in full Road Warrior dress

Now where did I put that football padding and feather boa? Ah, there it is, next to my sawed-off shotgun.

[physioex]

8. There is no one solution......

It would have to be a combination of conservation, solar, wind, ocean, and ethanol. I disagree about the "few lightbulbs". I pay extra on my electric bill to purchase wind power. Is there enough for the whole country? No, not right now but like I said we need a combination of things.

On Edit: This also gives me a little satisfaction that I support my local economy than send my dollars elsewhere.

[GliderGuider]

7. Renewables are coming, though perhaps not as fast as we'd like (or need)...

From my article World Energy to 2050:

Renewables are going to do pretty well between now and 2050:





But they'll have to cope with this:



And this:



And a little bit of this, which really gives me the willies:



And it all ends up looking sort of like this:



Sleep tight...

[IDemo]

3. The Yergin graph indicates an ever increasing supply of juicy black crude

Not a lot of credibility from Danno

http://www.energybulletin.net/9335.html

[Strelnikov_]

9. That would be 2.468 Yergins per bbl for those tracking in that unit

Looks like we will hit 2.631 Yergins/bbl in 1/6 of a Friedman Unit at this rate.