Topic: Saudi prince: $100-a-barrel oil 'never' again (Read 1330 times)

I read this article too and the claim is pretty ridiculous. It's like saying that Bitcoin will never go up to $300 again. There's just no fact to it, no logic. The price will most certainly grow above $100 a barrel, if not due to the finite supply then due to inflation of the dollar.

It's a ridiculous claim. But don't get me wrong, I love cheap gas!

I think world oil is cheap recently.
On my country, our gasoline named " premium " has been decrease from Rp 8.500 per liter down to Rp 7.600 per liter

I hope it will keep lower because everything will gonna expensive

What happens when oil reserves get finished? because it will happen sooner or later. If the fate of the world depends on that price and all oil gets consumed.. then what.

Saudi Arabia trying to hurt U.S shale.

Read through this thread. A lot of ideas have been posted, and truthfully, it's a little bit of all of these. There's no simple, clear-cut explanation.

Can someone tell me what has actually been the reason behind the oil price tanks and a sharp 50% decline?

The world economy needs energy and if energy is super cheap that either means its very abundant or the world economy isn't growing enough.
at least that's what I think his idea behind that thought was.

You gotta flesh out the justification for that conclusion, because I don't see it.

I can understand copper and Bitcoin being down. But oil has to go back up. It literally has to 100% guaranteed. The fate of the world actually depends on that price.

I have a great quote where the king of Saudi Arabia said to Kissinger at the time.

" We and our ancestors survived on dates and milk and we will return to them again." after Kissinger threatened to bomb the oil fields.

The king just died and oil prices are spiking all ready.

Yep, becouse LENR is coming. Oil price will be like $10 per barrel in a 2-3years.

Pushing down the prices to make the competition bankrupt.
That's just smart business folks

Never again
Never say never anyways we won't see it for a while so I guess he's right
Still it will be a while till that price per barrel reaches 100 again

My understanding now is that they are competing with so many other producers, they don't want to give up market share. They produce just about as cheap as oil can be produced due to beneficial location of their oil fields and easy, low cost extraction, so they can weather low prices for quite awhile while the higher cost producers cannot. It sounds like they've done the calculations and have concluded that losing market share would be more expensive to them in the long run.

Why don't they cut the oil production, like they did in some war against Israel?

Even weaker industries do it when prices are falling at Bitcoin rates

Saudi Arabia is losing billions! So what if they have 1 trillion dollars saved for a rainy day.
Nobody like to lose money. The oil price will rise again as sure as the sun!

I like how the prince thinks the Americans wouldn't screw him over with Russia.

Russian will never give-in! People don't know their history very well!
The entire oil crisis is due to the inevitable crash of the United States' economy. 18 Trillion $ debt!
The leaders see the writing on the wall, so they are trying to steal the European market from Russia.
Russia has been selling oil and gas to Europe for 40 plus years!

CO2 is CO2, it doesn't matter where it comes from. But I think you're wondering if running an electric car fueled by coal-generated electricity ultimately releases more carbon into the atmosphere than a car which runs on petrol. I can't find any information to reliably answer this, but I live in an area fueled by nuclear energy, so I've never had to personally give it much thought. And I'll be switching to solar as soon as one of the solar generation companies like Solar City expands to my area. (I also drive a hybrid, and it was $4,000 extra dollars compared to the non-hybrid version of my car, which is nowhere near $10-30k extra. It's also paid for itself, and although it would take longer in a time of always-low gas prices, it would still pay for it's own upgrade before I bought a new car.)

On the other point: In order for a gas car to be cheaper to fuel than an electric, gas has a long way to drop. Tesla's Model S gets 89 mpg equivalent. 1 gallon of gas is the equivalent of 33.7 KwH, which means that a Model S gets 89 miles per 33.7 KwH. At an average US electricity price of 9.84 cents per KwH, 33.7 KwH costs $3.32, which is how much it costs to move you 89 miles, for a per mile price of 3.7 cents per mile.

As of 2013, the average mpg of the American fleet was 24.6, but I'm going to assume you have a newer, fuel efficient car and say you're getting 30 mpg. At an average price of $2/gallon, 1 mile would cost 6.7 cents.

And in order for your 30 mpg vehicle to be cheaper to run per mile than the Model S, gas would have to dip below $1.11 per gallon.

(Electricity is more expensive in the northeast and California, so in California for example where electricity is 13.5 cents per KwH, gas would have to be less than $1.53 per gallon to be cheaper to run).