Oil Executive Predicts $1 Gas In 2009

11 posts / 0 new
Last post
krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
Oil Executive Predicts $1 Gas In 2009

TheBostonChannel.com

Oil Executive Predicts $1 Gas In 2009

Massachusetts CEO Of Gulf Oil Sees Oil Prices Falling $20 A Barrel

POSTED: 8:45 am EST December 5, 2008

 

A Massachusetts-based oil executive is boldly predicting that pump prices might fall to $1 a gallon in early 2009.

"The oil market is a manic-depressive market. It tends to overshoot," said Joe Petrowski, CEO of Gulf Oil.
Petrowski, who has been studying the oil business since the 1970s when he wrote his Harvard thesis, said that the price of oil could
sink to $20 per barrel, WCVB-TV of Boston reported.

"The market overshot last summer on the high side. Oil never should have gone to $147, but it did and it can," he said.
Petrowski is betting that the slide in oil prices will continue to fall dramatically and overshoot on the low side.

"There is a better than 25 percent probability that we'll see oil go as low as $1 a gallon sometime after the first of the year," he said.
Gulf Oil, which is based in Newton, Mass., is not an oil producer or a refiner. The company is a wholesaler that distributes fuel through
a network of 1,800 Gulf gas stations throughout the Northeast.

Dramatically lower gas prices would be quite a rebate check for consumers, Petrowski said. He said the drop may help ease the
country out of the recession.

"The price of oil has a tremendous impact on discretionary consumer spending. I think it hurt us tremendously during July and August,"
Petrowski said.

That's when high gas prices prompted motorists to cut back their travel by 9 percent. But Americans are conserving as much as now.

"But long term, we need to have oil prices at an equilibrium price that will encourage new production, will encourage efficiency and will
encourage alternative sources," Petrowski said.

He said he hopes that the motivation to create alternative energy sources will not be lost if pump prices continue to fall.

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Oil Executive Predicts $1 Gas In 2009

You gotta hear what Lindsey Williams(The Energy Non-Crisis) sees coming up. He predicted back in June that oil would go to $50/barrel around this time. The idea was to bankrupt OPEC. And he mentions we have PLENTY of oil, we just discovered 2 new massive oil fields in Indonesia and Russia over the summer. I'm not sure what to think now.

This is Part 1, just some background info:

http://www.youtube.com/watch?v=H6qzDtI5oMk 

Part 2 - the meat of the matter

http://www.youtube.com/watch?v=VGEnpbzCM2I&feature=related 

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Oil Executive Predicts $1 Gas In 2009

Hi Joemanc,

This has been addressed a couple of different times over the past few weeks. Try this most recent forum for starters.

But for a more direct response, here's what I had to say about it back then:

I’m moderately familiar with Mr. Williams and have watched one of his speeches twice, though I haven’t read his book. I found him to be an interesting and pleasant speaker, and his cadences and inflections clearly indicate his preacher background.

Unlike, perhaps, many Peak Oil advocates (and I’m one) I don’t see Mr. Williams as an adversary and I certainly don’t see him somehow disproving PO or claiming it to be myth. In fact, he more or less buttresses the main thrust of PO through his assertions of oil’s vital role in our modern, industrialized society. Indeed, much of the narrative of his tale of conspiracy wouldn’t make much sense without the central role played by oil. It is precisely because of what I call the pixie dust nature of oil that manipulating humanity’s access to it and price paid would have such devastating ramifications. Mr. Williams echos this sentiment several times during the presentation I saw as he references plastics and "everyday" items like toothbrushes.

To reiterate an important theme here, Peak Oil is primarily an issue of when. Most people understand that oil is a finite resource that takes significant energy and dollar-investment to acquire from the Earth, that it is indispensable to our modern lifestyle full of technological marvels, that it is the cornerstone of the economic juggernaut of continual growth, and that its loss (slow or otherwise) would have serious impacts on our modern way of life if adequate replacements aren’t waiting in the wings to fill the gap.

Mr. Williams agrees with all of these points. So I see him basically saying that PO is real and serious but simply that it’s coming sooner than it should or would because of a government/big oil conspiracy.

Again to restate an incredibly important point: The conspiracy Mr. Williams is supposedly blowing the lid on wouldn’t have legs if oil weren’t so critical to our way of life. So it’s almost like this, because PO is real and serious, the theoretical conspirators went ahead with their conspiracy. I hope you follow and apologize if I’m repeating myself.

Think of it this way. If oil weren’t that important to our modern lifestyle, if the price of oil or its volatility didn’t matter to virtually every industry in the world, and if we had so much oil we didn’t know what to do with it, what would the point of their conspiracy be?

As far as the veracity of the conspiracy goes, who knows? Without a doubt he absolutely offers no proof whatsoever. However, who could be surprised by an attempt by the government and/or big business to disenfranchise or impoverish the masses?

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Oil Executive Predicts $1 Gas In 2009
joemanc wrote:

You gotta hear what Lindsey Williams(The Energy Non-Crisis) sees coming up. He predicted back in June that oil would go to $50/barrel around this time. The idea was to bankrupt OPEC. And he mentions we have PLENTY of oil, we just discovered 2 new massive oil fields in Indonesia and Russia over the summer. I'm not sure what to think now.

How big is "massive"?  Got any NUMBERS?? 

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Oil Executive Predicts $1 Gas In 2009

He said that just the Indonesia field is 320 billion barrels, bigger than Saudia Arabia. Of course, I find all this information the same weekend I'm reading one of Chris' book recommendations, Beyond Oil The view from Hubbert's Peak.

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Oil Executive Predicts $1 Gas In 2009

Some interesting and random points here that overlap with some of what Williams says.

Russia invaded Georgia when oil prices were peaking, which possibly emboldened them to do so. Russia said, hey, we got so much money and re-emerging power these days let's do this thing now.

In response, the West (US, UK, Australia, France, Spain, Canada, Germany, etc) used all their power and inside financial tracks to collapse oil prices to attempt to bankrupt the Arab regimes, Iran, Russia, and Venezuela, essentially stripping them of their increasing power. They realized that with prices so high all of the enemies of the West were quite simply becoming stronger and more influential by the week.

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: Oil Executive Predicts $1 Gas In 2009
joemanc wrote:

He said that just the Indonesia field is 320 billion barrels, bigger than Saudia Arabia. Of course, I find all this information the same weekend I'm reading one of Chris' book recommendations, Beyond Oil The view from Hubbert's Peak.

Who said that? Williams in the links you posted above?

logBurner's picture
logBurner
Status: Bronze Member (Offline)
Joined: Sep 26 2008
Posts: 58
Re: Oil Executive Predicts $1 Gas In 2009

"He said he hopes that the motivation to create alternative energy sources will not be lost if pump prices continue to fall"

 But would like to install a little fear!?!

With all respect, why waste forum attention on this article? There is a statistical probability that oil could reach 1 cent a barrel (or 1 pence in my currency). If fuel ever reached that level ($1, as if a difference) then I would seriously be worried, I would sell my house, buy a tank + plenty of ammuntion and I am a pacifist by nature. Should I post a new topic of tobacco could statistically heal cancer?

Has this been published in any mainstream press? If so I really despair!

Please delete this thread!! It is going nowhere.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Oil Executive Predicts $1 Gas In 2009

Multi-million dollar gas project suspended

Gas is the latest resource to be hit by the slowdown
in the global economy with the suspension of a $900 million gas project
off the North West coast. [of Australia]

Santos and Apache are joint venture partners in the Reindeer Project at Devil Creek, south of Karratha.

The credit crunch has forced the companies to delay development of the gas field until sale agreements can be finalised.

A number of engineering and construction contracts are expected to be terminated, or suspended, as a result of the delay.

However, a Santos spokesman says the company will continue to pursue
mining and environmental approvals in lieu of the project re-commencing.

First gas production was expected to commence in mid-2010.

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Re: Oil Executive Predicts $1 Gas In 2009
joemanc wrote:

He said that just the Indonesia field is 320 billion barrels, bigger than Saudia Arabia. Of course, I find all this information the same weekend I'm reading one of Chris' book recommendations, Beyond Oil The view from Hubbert's Peak.

EXACTLY......  so why is this kept SECRET??  Surely a find THAT BIG would've been splashed all over the news media.... 

Even if it were true, it's only ten years worth of consumption at current rates.. 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 3998
Shock and Awe??

A top OPEC official says the oil cartel is considering a shock production drop
when its delegates meet on December 17.

Oil prices settled at a four-year low on Friday at $US40.81 per barrel, after
peaking in July at record highs above $US140 a barrel.

http://www.skynews.com.au/business/article.aspx?id=284625

Shock and Awe??

OPEC warns of substantial cuts coming soon

For those of us who were dying for relief from record high gasoline prices this
summer, the recent drop in oil prices comes as great news, but this is not the
case for everyone. OPEC, which supplies the world with roughly 40% of its oil,
would like to see prices rise higher again, and today gave a clear sign that
larger than expected production cuts are on the horizon.

In an interview today, the President of OPEC, Chakib Khelil, stated that a
consensus had been reached for cuts at the next meeting of the oil cartel. The
next scheduled meeting is on December 17, and according to Khelil, the market
will be surprised.

Khelil stated that the he felt the best way to get a quick boost in oil prices
is to shock the market, and he felt that the upcoming production cuts would be
able to do just that. While he did not indicate exactly how large the production
cuts would come, he left no doubt that they will be substantial.

"The stronger the decision, the faster prices will pick up," Khelil said.

http://www.bloggingstocks.com/2008/12/06/opec-warns-of-substantial-cuts-coming-s\
oon/print/

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments