why do we continue to support oil? We send 700B overseas annually to purchase foreign energy; why do we not spend that money domestically developing biofuels and alternative energy?
A pathetic attempt by a self-promoting grandstander to grasp onto any remaining thread of credibility, since his claim to fame "peak oil" theory has now been clearly demonstrated to be the unsubstantiated hoax it always was. Sorry Matt, you are no longer relevent.
The cause of the current crisis is related directly to oil and consumption. The financial meltdown is due to a lack of continued growth - caused by the lack of ability to grow without very high oil prices
Kinda like Hubbert was "wrong" in his prediction of American production peaking in 1970, right? Oh, wait, he was right...but guess what no one found out until after 1970.
Simmons' wager is for the year of 2010. We're not quite there, yet, so I'm not sure how it "has now been clearly demonstrated to be the unsubstantiated hoax it always was."
We still have to wait for the end of 2010 to find out...
Yes, Hubbert was wrong unless you give him an unlimited time frame to be correct. In that case, I predict that the stock market will hit 9000 again.
Many also picked the imminent demise of domestic natural gas in the early 00's. Politicos said that we "could not drill our way out". 40-50 LNG receiving terminals were planned. Problem was we DID drill our way out, with unconventional gas (shale & coal seam gas). All that was required was higher prices. Where are all of those LNG terminals today?
I'm talking about crude oil. You're talking about natural gas.
Yes, Hubbert's theory does not take into account unconventional sources of non-renewable resources, but were are the unconventional sources of oil? Sure, there the tar sands in Canada, but it requires large amounts of fresh water and natural gas to extract petroleum from them.
Where's the oil shale production? If Hubbert was wrong, then why has US oil production declined since 1970?
I listened to interviews with Mr. Simmons and Mr. Savinar, both Peak Oil advocates, back in June of 2008. Both of them said...and I quote...."Oil will continue to rise without a top, unless there is a very deep recession or depression, and then it will come down quickly. And it appears this is exactly what we are going to get."
They said the level it comes down will depend upon the severity of the recession/depression.
Did you know that global oil _discoveries_ peaked in 1962 and has decreased ever since? Where exactly are the discoveries to fuel future increases in global oil production?
We're in a plateau right now. Global oil production decreased through 2007, long before the implosion of the global economy.
Oil is cheap right now because inventories are high due to OPEC not cutting production sufficiently in response to reduced demand. Inventories are at 5 year highs.
Yes I am aware oil has already peaked. The current drop in prices is simple. There is no conspiracy. We are in the midst of a massive global recession/depression. This is the only thing that could have brought the price of oil down.
Remember, Peak Oil is not about how much oil is in the ground. It is about the maximum capacity oil can be produced as compared to demand.
There are Many experts who say 87 million barrels a day is Peak. They say that number will fall every year from here out.
"We are in the midst of a massive global recession/depression. This is the only thing that could have brought the price of oil down."
Combined with the fact that OPEC has not cut production sufficiently enough (though they may have, now). I now realize the "supply" side of the equation is inventories in storage tanks, not what's in the ground. Inventories continued to climb until just recently, because OPEC was still producing like mad.
Like Boone Pickens, Matt Simmons is rich investment banker, he doesn't need this shit. Again Like Boone Pickens they are worried about you, I don't they should because people like you are ungratefull and will drive the situation out of controll which is happening now.
BTW you will no longer be relevant after you starve to death or are killed in an altercation over fuel shortages, or in some other grisly way because of something you think is hoax
Baltic dry index dropped 93%,thats the demand from shipping.This is a major drop in oil demand, airline demand dropped.People not shopping. Demand for Oil has dropped quite a bit and will continue to as economies get worse.
Christianity is a hoax. Christianity is Roman war propaganda against the Jews and nonwhites. New testament was written by Romans to demean and destroy Judaism. Titus Flavius who destroyed the Jewish Temple commissioned the Christian hoax as a replacement for Judaism. Titus' Flavius military campaign against Jerusalem was transformed into Jesus' ministry against Judaism
I refuse to recognize Barack Hussein Obama as President of the United States of America because he is not a natural born citizen and therefore ineligible according to the U.S. Constitution. The U.S. Supreme Court refuses to even discuss the many lawsuits filed by Philip J. Berg, Alan Keyes and many others. The media refuses to discuss it. Just watch some of the videos on my page. If you agree that the U.S. Supreme court should hear the facts and make a ruling then sign our POLL and "Friend Us" 0
nobody cares what you think. you better take a look at the underlying reasons for your hate of obama. prejudice may be there. you better adapt to the times. your hate will DESTROY YOU.
Greed is the #1 enemy of the human race. Why in the hell are we still using, no mater what the estimates are, a finite and grievously polluting energy source? Human civilization is on a tipping point and can no longer allow the deeply entranced culture of greed to continue to stall if not repress technologies that long ago could have been introduced.
What people just don't get is the concept if INELASTICITY. A small change in demand for oil/gas can make mean a *huge* change in price. It goes both ways. For most people, in the short run, they buy just about as much gas whether it's $2 or $5, because they have to commute, etc. That's inelasticity.
If the price of say, big Macs, went from $3 to $7, sales would fall *very* hard. That elasticity.
MY WHOLE LIFE NOBODY EVER has been able to explain gas prices!
It's all hearsay and theories. Why was oil at $147/barrel 5 months ago now it's $33/barrel?
NOBODY EVER KNOWS!!!!
This old guy is no help either.
BRING ON ELECTRIC CARS!!!!
Screw gasoline, screw OPEC, screw the Bush family, screw the middle east, screw the big 3 auto companies who own patents on electric cars for years and have kept them down
signed, an ordinary american who's tired of GETTING screwed all the time
exactly. in this case corporations are the problem with new technology. the solutions are there for clean better ways of transportation. however, these companies want the easy way out. watch who will the electric car.
Cushing Oklahoma is full.Iran has full tankers just sitting because no one wants delivery and this time of year has typicalLy the lowest demand.Not to mention wold wide recession. The price drop is caused by the same speculators that drove the price up.
Oil is controlled by an ILLEGAL CARTEL. Free trade is a big lie. Supply and demand theory is a joke. The CARTEL sits there and squeezes the consumer until we're bled dry. Then they lower the price until we have some more cash that they can take.
They are trading their goods in these nations. The laws can and should be enforced. This is illegal activity. Just because its a foreign entity doesn't make it okay.
So Mr. duhCider, I'm confused. Are you proposing that no one in America buy OPEC oil or are you proposing that OPEC itself should be shut down. Bomb the Geneva headquarters or something like that. Also, America has its lobbies as well, look at the sugar industry. The ethanol industry has forced a 100% tariff on imported ethanol from Brazil. I don't recall any Brazilians flying planes into America's buildings. Big American tobacco forcing 3rd world countries to buy their lethal product.
There's only one thing you got right in your last screed: You are confused.
It's ironic, but only a dinosaur would defend the oil cartel.
All the right-wingers scream "FREE MARKETS FOREVER", but they conveniently ignore that notion when the oil and health insurance cartels are mentioned.
Plenty can be done about both cartels, but, alas, they own too many of our politicians. So, many people have to die needlessly to fill the big hole in the center of soulless men.
Well firstly, Mr. Duhcider, I don't know if you can find any American republican politicians who are in favour of stopping the 30 billion dollar a year agriculture subsidy. I think of conservatism in America today to be more of a cult of the rich rather than any ideological movement. But back to the subject at hand. I'm curious as to what are some of the plenty of things that can be done to destroy OPEC.
@duhCider The only thing that can be done to reduce the power of oil cartels, is really to reduce demand. drive less, use less petrol (gasoline as you call it). Buy more efficient vehicles, and walk/ bicycle for your shorter trips. This would help health as well
Lindsay Williams said that TPTB want to bankrupt Saudi Arabia - that's their goal - nothing to do with supply and demand - it's being heavily manipulated at the highest levels.
Much of the oil price increase was being blamed on speculation of war, and possibility of hurricane damage in the gulf. Take these factors out and the market crashes. Production cuts will take it higher, but when and how much?
American consumers drive their SUVs less now, and more are buying fuel efficient cars. My guess is oil will continue to swing wildly as market forces remain volatile.
Two things, one if I'm running the stragetic petroleum reserve, I'm lobbying to buy as much oil as I can. And then when it fills up, I'm asking the US government to increase it's maximum capacity.
two-How many doomsday scenarios does Simmons have to wrong about before people stop listening to him.
I agree with Matt; demand has not dropped significantly enough to account for the kind or price drop we've seen. What is going on? A price conspiracy like another commentator suggested? I tend to not think so, but something is going on. I'd liked to hear what Matt has to say about that.
the price is being kept low by some invisible means in order to stave off deaths from those in the colder parts of US that rely on oil heat. This is so that some solution that greases the right palms can be dreamed up for next winter when those folks experience the shock and awe.
there is no FUKN way demand has dropped,it hasnt dropped at all its being used way more now that they dropped it wtf wtf wtf?WHY the fuk is it down? wtf is the elite mother fukers up too?
Why don't the oil producing countries, who say they want a price of $75/bbl, stop trying to adjust price by making supply cuts, and just set the price and then match the supply to the following demand? Its not like oil cannot be held onto,(in the ground, on tankers, where ever, it won't go bad like bananas).If I was producing some essential non-renewable resource that almost literally everyone uses, there is no way I would sell it for less than it costs me to produce it, that's just duped.
There's no concensus in this modern age on how to measure demand.
So pundits can make up any narrative they want, and say anything they want, and you can't prove them wrong.
Demand in the old days could be measured as a function of price acceleration. But that ruins the narrative that speculators completely control prices.
In economics the "Law of Supply and Demand", has price as a necessary component. If you remove price, the relationship falls apart.
It just seems there is a big media hype on the price of oil so it goes up.
No big conspiracy thats just how our little world works right now.
raffyluvstaffy 2 years ago
i think matt simmons has been drinking a lot with his brother richard ..
florgat91 2 years ago
lulz
peebeebaynut 3 years ago
why do we continue to support oil? We send 700B overseas annually to purchase foreign energy; why do we not spend that money domestically developing biofuels and alternative energy?
brob1969 3 years ago
A pathetic attempt by a self-promoting grandstander to grasp onto any remaining thread of credibility, since his claim to fame "peak oil" theory has now been clearly demonstrated to be the unsubstantiated hoax it always was. Sorry Matt, you are no longer relevent.
gozerzuul 3 years ago
Well he hasn't been proven wrong yet has he?
Chris0260 3 years ago
go buy an SUV !
stonerj0e 3 years ago
The cause of the current crisis is related directly to oil and consumption. The financial meltdown is due to a lack of continued growth - caused by the lack of ability to grow without very high oil prices
energyfuture 3 years ago
"caused by the lack of ability to grow without very high oil prices "
Are you talking about oil producing or oil consuming countries? Or the global economy?
cocacola443 3 years ago
Kinda like Hubbert was "wrong" in his prediction of American production peaking in 1970, right? Oh, wait, he was right...but guess what no one found out until after 1970.
Simmons' wager is for the year of 2010. We're not quite there, yet, so I'm not sure how it "has now been clearly demonstrated to be the unsubstantiated hoax it always was."
We still have to wait for the end of 2010 to find out...
cocacola443 3 years ago
Yes, Hubbert was wrong unless you give him an unlimited time frame to be correct. In that case, I predict that the stock market will hit 9000 again.
Many also picked the imminent demise of domestic natural gas in the early 00's. Politicos said that we "could not drill our way out". 40-50 LNG receiving terminals were planned. Problem was we DID drill our way out, with unconventional gas (shale & coal seam gas). All that was required was higher prices. Where are all of those LNG terminals today?
JacqueBauerCTU 3 years ago
I'm talking about crude oil. You're talking about natural gas.
Yes, Hubbert's theory does not take into account unconventional sources of non-renewable resources, but were are the unconventional sources of oil? Sure, there the tar sands in Canada, but it requires large amounts of fresh water and natural gas to extract petroleum from them.
Where's the oil shale production? If Hubbert was wrong, then why has US oil production declined since 1970?
cocacola443 3 years ago
I listened to interviews with Mr. Simmons and Mr. Savinar, both Peak Oil advocates, back in June of 2008. Both of them said...and I quote...."Oil will continue to rise without a top, unless there is a very deep recession or depression, and then it will come down quickly. And it appears this is exactly what we are going to get."
They said the level it comes down will depend upon the severity of the recession/depression.
Jacobrester 3 years ago 2
Did you know that global oil _discoveries_ peaked in 1962 and has decreased ever since? Where exactly are the discoveries to fuel future increases in global oil production?
We're in a plateau right now. Global oil production decreased through 2007, long before the implosion of the global economy.
Oil is cheap right now because inventories are high due to OPEC not cutting production sufficiently in response to reduced demand. Inventories are at 5 year highs.
cocacola443 3 years ago
Yes I am aware oil has already peaked. The current drop in prices is simple. There is no conspiracy. We are in the midst of a massive global recession/depression. This is the only thing that could have brought the price of oil down.
Remember, Peak Oil is not about how much oil is in the ground. It is about the maximum capacity oil can be produced as compared to demand.
There are Many experts who say 87 million barrels a day is Peak. They say that number will fall every year from here out.
Jacobrester 3 years ago
"There is no conspiracy."
Did I ever say there was?
"We are in the midst of a massive global recession/depression. This is the only thing that could have brought the price of oil down."
Combined with the fact that OPEC has not cut production sufficiently enough (though they may have, now). I now realize the "supply" side of the equation is inventories in storage tanks, not what's in the ground. Inventories continued to climb until just recently, because OPEC was still producing like mad.
cocacola443 3 years ago
Like Boone Pickens, Matt Simmons is rich investment banker, he doesn't need this shit. Again Like Boone Pickens they are worried about you, I don't they should because people like you are ungratefull and will drive the situation out of controll which is happening now.
BTW you will no longer be relevant after you starve to death or are killed in an altercation over fuel shortages, or in some other grisly way because of something you think is hoax
valhala56 3 years ago
Baltic dry index dropped 93%,thats the demand from shipping.This is a major drop in oil demand, airline demand dropped.People not shopping. Demand for Oil has dropped quite a bit and will continue to as economies get worse.
keithholden 3 years ago
This has been flagged as spam show
Christianity is a hoax. Christianity is Roman war propaganda against the Jews and nonwhites. New testament was written by Romans to demean and destroy Judaism. Titus Flavius who destroyed the Jewish Temple commissioned the Christian hoax as a replacement for Judaism. Titus' Flavius military campaign against Jerusalem was transformed into Jesus' ministry against Judaism
Search "Joseph Atwill" -author Caesar's Messiah
See youtube video- watch?v=dCNJf83bqjs
pt1200 3 years ago
This has been flagged as spam show
I refuse to recognize Barack Hussein Obama as President of the United States of America because he is not a natural born citizen and therefore ineligible according to the U.S. Constitution. The U.S. Supreme Court refuses to even discuss the many lawsuits filed by Philip J. Berg, Alan Keyes and many others. The media refuses to discuss it. Just watch some of the videos on my page. If you agree that the U.S. Supreme court should hear the facts and make a ruling then sign our POLL and "Friend Us" 0
NewChristianSoldiers 3 years ago
nobody cares what you think. you better take a look at the underlying reasons for your hate of obama. prejudice may be there. you better adapt to the times. your hate will DESTROY YOU.
canolorenzo 3 years ago
Greed is the #1 enemy of the human race. Why in the hell are we still using, no mater what the estimates are, a finite and grievously polluting energy source? Human civilization is on a tipping point and can no longer allow the deeply entranced culture of greed to continue to stall if not repress technologies that long ago could have been introduced.
mattghtpa 3 years ago
What people just don't get is the concept if INELASTICITY. A small change in demand for oil/gas can make mean a *huge* change in price. It goes both ways. For most people, in the short run, they buy just about as much gas whether it's $2 or $5, because they have to commute, etc. That's inelasticity.
If the price of say, big Macs, went from $3 to $7, sales would fall *very* hard. That elasticity.
Wikipedia it. It's not that hard to understand.
codediporpal 3 years ago
MY WHOLE LIFE NOBODY EVER has been able to explain gas prices!
It's all hearsay and theories. Why was oil at $147/barrel 5 months ago now it's $33/barrel?
NOBODY EVER KNOWS!!!!
This old guy is no help either.
BRING ON ELECTRIC CARS!!!!
Screw gasoline, screw OPEC, screw the Bush family, screw the middle east, screw the big 3 auto companies who own patents on electric cars for years and have kept them down
signed, an ordinary american who's tired of GETTING screwed all the time
rtardbox 3 years ago 2
amen
darwinx0101 3 years ago
exactly. in this case corporations are the problem with new technology. the solutions are there for clean better ways of transportation. however, these companies want the easy way out. watch who will the electric car.
canolorenzo 3 years ago
oh, I feel so sorry for the oil companies...
Bubba186 3 years ago
Cushing Oklahoma is full.Iran has full tankers just sitting because no one wants delivery and this time of year has typicalLy the lowest demand.Not to mention wold wide recession. The price drop is caused by the same speculators that drove the price up.
jiggakilla666 3 years ago
Oil is controlled by an ILLEGAL CARTEL. Free trade is a big lie. Supply and demand theory is a joke. The CARTEL sits there and squeezes the consumer until we're bled dry. Then they lower the price until we have some more cash that they can take.
duhCider 3 years ago 4
Illegal cartel? By who's laws?
codediporpal 3 years ago
Virtually every western nation that purports to support "free trade" has anti-trust and cartel laws that render how OPEC operates illegal.
duhCider 3 years ago
Um... laws of western nations do not apply to Saudi Arabia, UAE, Venezuela, etc.
codediporpal 3 years ago
They are trading their goods in these nations. The laws can and should be enforced. This is illegal activity. Just because its a foreign entity doesn't make it okay.
duhCider 3 years ago
Excellent point about OPEC being an illegal cartel. Now exercise your option not to buy this illegally distributed oil.
drmodestoesq 2 years ago
The excellent point is:
THEY'RE AN ILLEGAL CARTEL SELLING THEIR PRODUCT IN THE U.S.!!!!!!!!!!!
THEIR COMMERCE CAN AND SHOULD BE SHUT DOWN!!!!!
duhCider 2 years ago
So Mr. duhCider, I'm confused. Are you proposing that no one in America buy OPEC oil or are you proposing that OPEC itself should be shut down. Bomb the Geneva headquarters or something like that. Also, America has its lobbies as well, look at the sugar industry. The ethanol industry has forced a 100% tariff on imported ethanol from Brazil. I don't recall any Brazilians flying planes into America's buildings. Big American tobacco forcing 3rd world countries to buy their lethal product.
drmodestoesq 2 years ago
There's only one thing you got right in your last screed: You are confused.
It's ironic, but only a dinosaur would defend the oil cartel.
All the right-wingers scream "FREE MARKETS FOREVER", but they conveniently ignore that notion when the oil and health insurance cartels are mentioned.
Plenty can be done about both cartels, but, alas, they own too many of our politicians. So, many people have to die needlessly to fill the big hole in the center of soulless men.
duhCider 2 years ago
Well firstly, Mr. Duhcider, I don't know if you can find any American republican politicians who are in favour of stopping the 30 billion dollar a year agriculture subsidy. I think of conservatism in America today to be more of a cult of the rich rather than any ideological movement. But back to the subject at hand. I'm curious as to what are some of the plenty of things that can be done to destroy OPEC.
drmodestoesq 2 years ago
@duhCider The only thing that can be done to reduce the power of oil cartels, is really to reduce demand. drive less, use less petrol (gasoline as you call it). Buy more efficient vehicles, and walk/ bicycle for your shorter trips. This would help health as well
KrunchyJD 1 year ago
Lindsay Williams said that TPTB want to bankrupt Saudi Arabia - that's their goal - nothing to do with supply and demand - it's being heavily manipulated at the highest levels.
rh7onda7 3 years ago
"hunch"
- so how does his hunch related to the effect of global financial collapse on oil demand in China and India?
5uper5tring 3 years ago
Much of the oil price increase was being blamed on speculation of war, and possibility of hurricane damage in the gulf. Take these factors out and the market crashes. Production cuts will take it higher, but when and how much?
American consumers drive their SUVs less now, and more are buying fuel efficient cars. My guess is oil will continue to swing wildly as market forces remain volatile.
thoughtchallenge 3 years ago
What? Does this tool understand how demand fell off the map in China, India, and the United States?
I would never let this fool manage my money.
rationalbeats 3 years ago
Two things, one if I'm running the stragetic petroleum reserve, I'm lobbying to buy as much oil as I can. And then when it fills up, I'm asking the US government to increase it's maximum capacity.
two-How many doomsday scenarios does Simmons have to wrong about before people stop listening to him.
thequietkid10 3 years ago
Exxon Mobile needs a bailout because of lower demand?
projectdurden 3 years ago
Thanks Leanan for another great post.
I agree with Matt; demand has not dropped significantly enough to account for the kind or price drop we've seen. What is going on? A price conspiracy like another commentator suggested? I tend to not think so, but something is going on. I'd liked to hear what Matt has to say about that.
Kevin Walsh
Chicago Peak Oil
kevinaugustine 3 years ago
the price is being kept low by some invisible means in order to stave off deaths from those in the colder parts of US that rely on oil heat. This is so that some solution that greases the right palms can be dreamed up for next winter when those folks experience the shock and awe.
doktorandom 3 years ago
there is no FUKN way demand has dropped,it hasnt dropped at all its being used way more now that they dropped it wtf wtf wtf?WHY the fuk is it down? wtf is the elite mother fukers up too?
creten69 3 years ago
Why on Earth does anyone listen to Matthew Simmons when his track record of failures speaks for itself?
peebeebaynut 3 years ago 2
But it did drop Matt; initial data from EIA point to about a 3 mbbl/day plunge for the US alone.
Ascribe it to the recession if you like, but we've got a monstrous glut of oil.
soylentgreenb 3 years ago 2
Why don't the oil producing countries, who say they want a price of $75/bbl, stop trying to adjust price by making supply cuts, and just set the price and then match the supply to the following demand? Its not like oil cannot be held onto,(in the ground, on tankers, where ever, it won't go bad like bananas).If I was producing some essential non-renewable resource that almost literally everyone uses, there is no way I would sell it for less than it costs me to produce it, that's just duped.
rhysfawr4 3 years ago 3
There's no concensus in this modern age on how to measure demand.
So pundits can make up any narrative they want, and say anything they want, and you can't prove them wrong.
Demand in the old days could be measured as a function of price acceleration. But that ruins the narrative that speculators completely control prices.
In economics the "Law of Supply and Demand", has price as a necessary component. If you remove price, the relationship falls apart.
Weaseldog2001 3 years ago 5