popeye1250
Posts: 18104
Joined: 1/27/2006
From: New Hampshire
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quote:
ORIGINAL: hizgeorgiapeach
Ken, my family owns partial mineral rights on some of the Oklahoma oil land you're talking about - and you're right, nothing at all is being done about uncapping still productive wells to start producing again. I wish they would - there was sufficient monthly revenue from even Partial rights on a few wells prior to the Bust out here, that with today's oil prices the revenue checks from those rights would keep my bills paid, my dad's bills paid, a couple of friends' bills paid, and still leave me money to put in the bank as savings!
edited to add:
During Oklahoma's Oil Bust that Ken mentioned in his post, it wasn't just Rigs/Wells that got shut down - it was Refineries as well. I can think of Several which I've Personally Been At during my childhood and teen years while my grandfather worked for Phillips - all of which now sit turning to rust because there wasn't enough profit in keeping them open. It wouldn't take That much to rehab them, rather than building whole new facilities, and I'm willing to bet that TX, LA, MS, and AR have some of the same sitting around.
You know, it's a big circle.
If people in the U.S. will *stop buying* all that crap in Walmart that's made in China and India then that will slow down demand for gasoline in those countries.
You need to start thinking of Walmart as your *enemy.* For any number of reasons.
There's no "shortage" of gasoline anywhere that I am aware of. (supply and demand.)I can almost garauntee you that gasoline consumption in this country this summer will be down about 6% over last summer. Maybe more.
And, there is a tremendous amount of "resistance" now that the price of gas is at $4.00. That tells me that this market won't "support" $4 per gallon gasoline prices for much longer.
A lot of stock prices are going down.
And a lot of people in oil producing countries *own* those stocks and they're losing a lot of money because the system is out of equilibrium.
If you look at it like a bicycle tire there's a buldge on that tire and it's slowing down the bike everytime we drive over it.
A lot of this is due to speculators.
When those speculators finally realize that the game is over things will head south real fast and the "buldge" gets "fixed."
Those things tend to get exagerated and it would not surprise me at all to see gasoline go down to $2.70 to $2.30 before finding it's equilibrium again. (An "inward" buldge on the tire.) (Look up "ICE" the options firm in England)
Then of course we'll have congressional hearings into corporate speculators and they may even hang a few of them out to dry.
If you only knew when that time was you could make millions of dollars.
In the meantime I own shares of a tanker ship company that's paying me 12.20% in dividends as of the close of the market today that takes some of the sting out of it, "NAT."
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"But Your Honor, this is not a Jury of my Peers, these people are all decent, honest, law-abiding citizens!"
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RE: Bush made it quite plain today - 
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