"The BRIC countries (Brazil, Russia, India & China) now consume far more oil than North America does"

 

I'm not sure about this. I suggest to confere it, Ancient. According my memory, US 20 - 22 mi barrels a day, Brazil - 2, China - 6.  Probably the four, with  10 times more people than US, don't consume the 20 barrels of US. Probably the man  confunded  consumption with growth of consumption. 

Since you brought it up, from Barrons this week:  US per cpita consumption of oil is 25 Bbls, Japan 14 Bbls, China 2 Bbls and India .8 Bbls.  Oil Demand is rated as: North America 24.9 million barrels per day, Europe 15.2, Pacific 8.9, China 7.8, Other Asian 9.5,Middle East 6.7, Latin America 5.7 and Africa 3.1.  It givs you pause to consider how much we depend on it.

Barrons is calling this market a bubble, but their record for calling things is NOT necesarily good.  They are making a case for $100/bbl oil by year end.  With supplies in such percarious political areas of the world any political upheaval could turn oil back up immediately.

Looking at the per capita consumption is telling, because the fact is we have a consumption problem as much as anything.  Some people think the solution is to just drill holes in every pristine piece of land, and along every coast line, that might have even a tiny bit of oil, but that is not going to solve the real problem.

Try as we might, we'll struggle to keep our oil production constant as our existing fields continue to decline.  And our per capita consumption is still going to be abysmal. 

More than anything else we need to aggressively increase our energy efficiency and transportation efficiency.  It seems like no one likes to mention it, but that is as big a part of the solution as alternatives, or frantically drilling everywhere.   

judyken:

Barrons is calling this market a bubble, but their record for calling things is NOT necesarily good

Anyone calling Oil market a bubble I have a simple question: Show me the supply!

By the way, can I brag for once: I've said in this forum a year ago that triple digit oil was coming in 2008 and was here to STAY. Since the Koala debate in Jan 2007, every Oil call I've made has been 100% on the money. Sure easy to say it now that I was correct... But did anyone believe me triple digits was coming in 2008 and was here to stay when everyone from CNBC to many analysts were calling for $50 oil and at that time I made those prediction Oil was way below $100???

According to Bloomberg:  Last week US oil usage declined by 2.7%.  What they didn't say was compared to what? (year earlier, previous week?)  There still seems to be as many stupid drivers out there, but I have been told that there are 15% fewer trucks on the road versus January 1 (can't verify it).  I am aware of a number of recent bankruptcies in truck carriers.  ken

openhurdle:

Anyone calling Oil market a bubble I have a simple question: Show me the supply!

The saudis can't find customers for their sour crude.  Demand destruction is occurring.  No one wants trucks and SUVs, hybrids are selling for a premium.  UPS reports shipping is down.  Companies are switching to railroads if possible to transport goods.

Lili..:

The saudis can't find customers for their sour crude.  Demand destruction is occurring.  No one wants trucks and SUVs, hybrids are selling for a premium.  UPS reports shipping is down.  Companies are switching to railroads if possible to transport goods.

Nice to live in la-la land. Please let me kow what planet you're living and I'll come to join you

Mentioned this earlier on another post....

In Washington state, in the 2 months of April/May when regular gasoline rose 20% in price, regular gasoline sales dropped 20%. So it appears that up here in the great NW, gasoline demand is elastic and we have found the price at which it goes elastic. Anyone seen comparable numbers for the country as a whole?

Don

This mornig on CNBC an intevew with T Boone Pickens he said that in the time it took gasoline to roughly double the demand decreased 4%.  Apparantly oil has a more inelastic demand curve than previously thought.

Tonight on CNBC a Goldman Sachs analyst said that they expect oil to drop to maybe $124/ Bbl and then turn around and continue its upward climb.  The reason for decline was due to a little additional supply to the market(Saudi and a new field that came on line July 1).

Folks, our demand for oil seems to be insatiable.  I'm off to Denver the end of the month and Vegas just after Thanksgiving.  I doubt anyone will find anything any time soon other than oil derivatives to keep the airplanes flying.  Those groceries you buy every week take a lot of diesel fuel to get to the store and if you live out east, you need to heat with the same stuff.  Until we stop eating and heating our homes or going to work, I think oil is going higher.  Commentary:  Neither candidate is dealing with the real problem "Comprehensive Energy Policy".  Keep looking up, that's where oil is headed.

Hi, ancient. It's a little late to be long oil&gas for the intermediate term. Not saying the run is over by any means, but the market is very overbought. I took profits on many O&G stocks the past month and yesterday I took a 10% stake in DUG (ProShares UltraShort Oil&Gas).

 

I too have trimmed back my energy exposure. I still have a hedge on, hedging what I figure my bride & I consume each year. Quite an announcement yesterday by T. Boone Pickens, huh?  Interesting times...

http://www.pickensplan.com/

Yep, that Pickens fellow is pretty smart. But we've all known what needs to be done since the gas lines of 35 years ago. We say it but nothing happens. It takes people like Pickens to stand up and say it. CONgress listens to those guys.