June 10, 2009

Gazprom CEO says oil may top $250. I ask, why stop there?

Probably the worst thing (if you like cheap oil) that could have happened was for the oil market to collapse.

Why?

Because nobody's been spending ANY money to find, extract or refine oil lately. Nor will they be soon.

Meanwhile, as the world economy heats up, and the Chinese and Indians put down the bikes and get in their swift new cars, oil demand goes way up, just as supply tanks. And oh, the dollar melts down.

$250? Might hit that next year or two.

And that would be a good thing. Get us off the black stuff and out of those gas-guzzlers as fast as you can.

Oil May Top $250, Says Gazprom CEO

A shortage of oil and gas investment means the sector will fail to meet demand when the global economy begins to recover, Gazprom Chief Executive Alexei Miller said on Wednesday.

There are no guarantees that further increases in oil demand will be supported by a sufficient growth in investments, the head of the Russian natural gas giant said.

Nobody has solved the issue of the "2012 supply gap" which may emerge later than thought but which will be deeper.

"It means prices may even jump over the $250 hurdle we have forecast a year ago," Miller said in a written text of a speech at a conference in Italy on the financial crisis and energy.

39 comments:

Anonymous said...

Talk of $250 oil? Time to sell out or short oil stocks if you ask me. We're set for a fall in the markets and another round of deleveraging. Remember what happened last July? According to the experts, oil was set to go to the moon, then it didn't.

beverly hillbilly said...

Total bullshit once again.Wasn't goldman sachs saying this awhile.If it goes to 250 they can take their shit and sell it to someone else.Screw these crooked oil men.speculators are back in the oil game again.

Anonymous said...

Drill here. Drill now!

No. Fuck that shit.

gutless and lazy said...

Won't happen until world decouples from the USA economy.

WHEN China, Brazil, etc. dont reply on exporting to USA and have healthy own internal economy, then YES. Ain't there yet.

BTW: Got IMF Bonds?
http://tinyurl.com/m8htj3

Anonymous said...

$250 oil is a masterbatory fantasy of the GS/JPM deviates.

Reality is gonna whack their manipulating peepees with a sledge hammer.

Out at the peak said...

For current demand now, why am I hearing that the oil tankers are holding the oil at bay because there is no place to put it?

Could the same oil speculation have started up again since March?

I'm usually an oil bull, but I feel output is surpassing demand at the moment. I think oil will go back down again before it makes a climb up.

I probably sold my oil stocks too early, but I'm taking my gains now because Q2 2009 has been wack.

Maybe I can buy some calls in case I'm wrong.

Gabor said...

Funny how everytime someone comes out and makes a prediction like this the market always seems to go the opposite way.

Randy said...

Hmmm,

So is that what the CEO Gazprom is saying?
Sounds interestingly similar to what the members of OPEC are saying.

Are ther many other people out there that will benefit from high oil prices?

Me thinks they are last people on this planet i would trust on future direction on prices of oil

keith said...

Ask yourself, just in case, are you ready for $250 or $500 oil?

Just asking.

Anonymous said...

"keith said...
Ask yourself, just in case, are you ready for $250 or $500 oil?

Just asking."

9mm, 115gr FMJ.

$ one thousand dollars per round

CASH, USD.

Buy or DIE.

Randy said...

As crazy as this may sound, if $250 or $500 oil is what it takes get us to energy independents, then I would actually look forward to it.

Anonymous said...

Keith, nobody is ready for $250 oil. If it even reached half that price, our ball-less Congress would open the spigots on our strategic reserves so fast it would make your head spin.

That said, some asshole like OBL might want to see oil at $250...

Andrew from Russia said...


Ask yourself, just in case, are you ready for $250 or $500 oil?
Just asking.


Oh no! I don't care about gasoline prices and such, but for Russia that would mean the extreme of malinvestment. Let's hope that we are just seeing a fast replay of 2003-2008, OK?

screw the oil speculators at GS said...

Is DUG a buy or sell.

Lost Cause said...

I don't own a car. GM and Chrysler in bankruptcy should give you a little window into the future. People are tired of the death boxes on wheels.

vanilla ice said...

At lunch today, I paid $2.67/gallon for gas. Gas prices are still too low.

Anonymous said...

A much quicker way to get $10.00 a gallon gas or more:

Move on Iran

Flare up on North Korea

Withold morning coffee from the Stock Market clerks and jerks--and hide their blue vests.

Have another shootin' in DC.

Stuff like that.

randall666flagg said...

I say oil will hit $300 a barrel in the summer of 2011. Unleaded gasoline will be $9 - $10 a gallon. And the U.S.A unemployment rate will be 18% - 25%. And you can blame this on the SUV and humongous full-cab truck driver. And also blame it on the 3 U.S car manufacturer in not pursuing fuel efficient car that consume, let's say, 50 miles per gallon. It is too late now for love...

Mike Oxlong said...

"Ask yourself, just in case, are you ready for $250 or $500 oil?

Just asking."

I thought the question was why stop there. Now I have to rethink my answer...

No. Just like I wasn't ready for $5/pack cigarettes, $20/case beer, rising income taxes, and rising healthcare costs. So I stopped consuming, dug for writeoffs, and told my wife to stop going to urgent care every time the kids got a temperature over 100.

High prices have a way of taking care of high prices.

Ross said...

Where's Roccman?

Anonymous said...

Bullshit demand is flat reserves up. Pure speculation, print another trillion and hand it to the rich and see where they put it to fleece the poor.

Jayman01844 said...

Yes and homes will reach 6 trillion dollars. Lets see.... what happens when there are no buyers when the price gets way out of line?????
i'll have to go back in time to a blog called housing panic and find out

Anonymous said...

Randy, Randy, when are you guys and gals going to understand? A high price for oil will NEVER result in energy independence, and if anything, high prices will only delay that happy occurrence. ALL of the "green" replacement sources require vast amounts of fossil fuel energy for their manufacture and deployment. Nuclear is much better in that regard, but there is a snowball's chance in hell of the greenies allowing the necessary licensing. Do not hope for higher oil prices - it's like hoping for a new strain of smallpox to solve overcrowding in schools.

yoski said...

Oil won't make it much past $200. That's about all the world economy can handle. Then it's back into recession, drop in demand, etc.
Of course then it will once again be blamed on speculators, big oil, Chinese, etc.
Truth is the easy stuff is gone forever and the oil remaining takes some serious investment to get out of the ground.
It's not a problem we can drill ourselves our of either. Drilling will delay the day of reckoning but it won't save us in the long run. But I guess that's what we're all about, delaying disaster so we can live another day.

Miss Goldbug said...

Oil bear trap. Sheeple get on board!

Remember fall is approaching, this Oct is going to be worse than 10/08

Miss Goldbug said...

$250 oil is a long shot, and $500 oil is delusional.

Anonymous said...

Sorry, Keith. If we see $200+ for more than 3 months, we'll see neutron-powered fireworks because the US, NATO heavies and China will all try to create glass highways to existing reserves. It takes sand and heat to make glass...

Anonymous said...

9mm FMJ? I will raise you one actual Winchester "Black Talon" hollowpoint round. Ought to be able to get 2k each for those babies...

Mick said...

gas and oil is going down to 50 cents

with more and more electric cars coming out as well as hybrids, it will sink and the russians, arabs will have to go back to tending sheep,

it hath been foretold

Mick said...

here is another scenario

thousands of oil tankers are sunk on purpose giving us the illusion that the world is short on oil........

still it will not make a difference

God is giving allah and followers their hell on earth

how ???? the lithuim batter which just came into existence last year,

Anonymous said...

9mm, 115gr FMJ.

$ one thousand dollars per round

CASH, USD.

Buy or DIE.


I think its a little too late for that. If your not stocked by now, you better hope the shortage is over before the SHTF. I've been stocked for years now and when Obama won last year, the first thing I did was to double my inventory.

And seriously, what's with the 115 grain FMJ your promoting? You gonna shot at paper targets or something? Its bad enough you're gonna rely on a 9MM without putting anything decent through her to put what you're shooting at down. You might wanna pick-up some 124GR JHP personal defense rounds if you can find it. Federal, Spear, and Hornady are the best in my book and you want the best if you're serious in living through any incident in which you might need to use it.

-Silly Monkey

Anonymous said...

Well last I checked they're not making anymore of the stuff...

The little bit we're finding here and there is nowhere near the size of an oil field(s) we'll need to sustain us going forward and as we burn through the black gold and it becomes harder and harder to come by, so will the rise of conflict increase as we jockey to control the supply. Which will ultimately lead to WWIII if something else doesn't get us there before hand.

I remember watching a documentary a year or so back where one of the original Petroleum Engineer that original found the Saudi oil reserve (and who is still alive) upheld his original prediction, that by 2007 we would have depleted more then 1/2 of the world's known oil and that unless we find another massive reserve like that in Saudi Arabia, given the yearly growth rate of demand going forward, the world would begin seeing a major drops in supply by 2010 and all the oil would be depleted by 2020.

Only problem is we're burning more and more each year, so I doubt we'll make it past 2014 in my opinion. If conflicts over oil start (as we've seen countries like China, Korea, US, etc jockey into position over these past few years) WWIII is inevitable and when that breaks out oil could very well be $500 a barrel and be considered cheep. But by then, it's likely that the US and other countries will hoard all the remaining oil for war.

The gas shortage of the 70s will be trivial in comparison.

Those are my thoughts anyway.

-Silly Monkey

Mike Hunt said...

It may get beyond there but it will take a few years. We need a really solid economic recovery for oil to get this high, not the fake Green shoots BS that y'all are talking about.

-Mike

read books said...

JH Kunstler called it 15+ years ago in "The Geography of Nowhere".

Read Richard Heinberg's "The Party's Over" and "Peak Everything".

Bukko_in_Australia said...

Ask yourself, just in case, are you ready for $250 or $500 oil?


Got a Prius. Ugly car, but can be converted to run (slowly) on full electric if TSHTF. So CHECK on that one.

Immigrated to a city that still has a street tram system and a suburban train system, all running on electricity (produced by some of the dirtiest coal on Earth, but it's mined and burned close to here.) So CHECK on that too.

Ride my bicycle a lot. Have spent the last few years taking holidays in Europe with the thought that we might not be able to do that in the future. CHECK.

Yeah, I'm as ready as I can be under the circumstances.

will shill for coin said...

>It's not a problem we can drill ourselves our of either.

Well for god sake then make some nuc power plants. Nope. Fuck that shit too. We are so screwed by this insane mindset.

Anonymous said...

gotta find some food between home and market to bring to market while i walk there

Anonymous said...

got chickens and rabbits?

Singular said...

It will be $250 oil because the US dollar will be worth that much - very little. Did you hear of bread costing 5000 marks in the Weimar Republic? So long as oil is valued in US dollars, it will go up and up nominally. In addition, and perhaps more importantly, oil is a limited and diminishing resource. And no, 'man' is not going to live on Mars or invent some technology that gets around this energy limitation. If anything, any new technology that is invented will use up more of the energy that is left even more quickly (see what cars and planes have done over the last 100 years), and bring us all to extinction quicker than otherwise.