Jeff Rubin and Andrew Nikiforuk on the future of oil

[dwdeclare]

i love jeff rubin. he's the jack nicholson of economists.

[AxnReaxn]

Energy intensive? You have to spend money to make money. Same goes for oil sands. Should we also bash entrepreneurship? FACT: The oil sands producers are self-sustaining with regards to energy input and actually sell power back to the grid.

[AxnReaxn]

The more I watch, the more outraged I become with these two. They talk about dykes "possibly" breaking, turning manure into fuel, and this Jeff says "I think" everytime he opens his mouth. And I quote, "this is where I think oil's going to be... I think oil's going to be $100 by the fourth quarter.. Now.. where we go from there is open to debate. Because it's VERY conceivable that in 2012, instead of my $200 forecast, oil is back at $40..." Essentially hes making predictions based on nothing.

[AxnReaxn]

Right away I found their points very new and interesting. I had to go back and relisten about 3 times to what Jeff was saying in opening. He talks about the implications of the high price of oil ($150-200/barrel) and says it forces people off the road. Then he says that when it's $40/barrel that the companies cannot maintain a profit and will stop producing oil. He makes good points but doesn't explain why oil would go to $200/barrel.

[AxnReaxn]

I may not have a PhD in economics but I do understand that the price of goods is driven by supply and demand. If oil goes up to $200/barrel, it's because it's still profitable for companies and citizens to buy it at such price, ie, the demand is there. Only when nobody wants oil or they overproduce it do oil prices plummet to such lows of $40/barrel. I should point out that I am a mining engineer in the Athabasca oilsands and the oil companies will still pull profits at$40/barrel.

[TheGreatAlexandre]

1 dislike.. must of been steven harper.

[markajaw]

41:50 what's really sad is that high oil prices have helped BP's stock price make a full recovery. 

[ElectricConversions]

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[IOIOIOIOIOIOIOIOIOIO]

Thx for sharing the conference

[tealeh2]

This guy Jeff Rubin reminds me of Jack Nicholson....I think he has got a hole in his shoes...is he poor???

[joetshmoe]

What is the price of vegetable oil at right now? Once diesel fuel starts becoming significantly more expensive then vegetable oil, we are going to start seeing some major spikes in food prices, and maybe even shortages.

[ElectricConversions]

Jeff Rubin has it right except for not believing that Electric Cars can help with our transition away from Oil. Most EVs will be charged at night, off peak, and will deliver 100 miles of range for that 8 hour overnight charge. Power demand is less than 1/2 that of day time power needs so the grid can handle lots of EVs. The transition won't happen overnight anyway. Start the transition now...buy an EV and love driving oil free!!!!

[KrunchyJD]

@ElectricConversions Cars, even high tech electric ones and even if charged at night will use up too much power, not because of peak or off peak use, but because of the inefficiency of cars. Now people can say that electric cars have good power efficiency or efficient engines, however batteries are not as energy dense as oil, and people forget the main problem with cars. The main problem with cars is that, because of their weight they are highly inefficient at transporting a single person.

[KrunchyJD]

@KrunchyJD If the people that make the decisions and our politicians are smart the world will go to electric trains for distance travel, and bicycles (or bicycle type vehicles with electric assist) for shorter distances. We can do that or we can constantly go in and out of recession.