oil 20 bucks... i think so..

[JimJ 5,000+ posts]

I really didn't think the demand for oil was as elastic as it's been.

But the math is not on the side of oil staying this cheap in the next 10 years, that's for sure.

 

[jmanpc 5,000+ posts]

no way opec will let this continue.

 

[bigbangtheory 5,000+ posts]

Well, I need gas today.........so only 20 bucks down the drain, instead of the 50 it was costing me a couple months ago, lol!

 

[Hintzyboy 5,000+ posts]

Well, $100 a barrel is translates to about $2.45 or so a gallon average. So we're probably looking at $2-2.50 when it goes back up depending on where you live.

 

[bigbangtheory 5,000+ posts]

Well it cost me 30 bucks at right around 2.50 and right now at 1.79 a gallon, cost me 23 dollars to fill up from empty to full. So 7 bucks I am not going to sweat about.

 

[Unholysavage 10+ year member]

I really didn't think the demand for oil was as elastic as it's been.
But the math is not on the side of oil staying this cheap in the next 10 years, that's for sure.

x2

From everything I've heard or read, demand for oil hasn't dropped by 65% (as oil prices have), so it's hard to say what's really affecting oil prices right now. Pretty sure that OPEC is having very little to say on the matter ATM. They cut production and prices still dropped....

I really hope that it doesn't drop that low. If it does, I'll be out of work (petroleum geologist, my career is all about finding the stuff) //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

time will tell I suppose

 

[Flipx99 5,000+ posts]

I really didn't think the demand for oil was as elastic as it's been.
But the math is not on the side of oil staying this cheap in the next 10 years, that's for sure.

Most people didn't.

As for your second point, that depends.

If a) people continued to be "scared" by $4 gasoline and the threat remains credible...ie, continue to carpool, continue to cut back, etc.

b) with the simultaneous decrease in demand, both from consumer (as above) and industrial (due to global recession)

c) we begin to replace oil with something else.

If those three events converge, oil will stay cheap. However, I don't believe the consumer is "scared" enough to continue the habits that they took when gas was $4/gal. Thankfully, the global recession will decrease industrial demand. Part "c" will require government support.

We had this opportunity before during the collapse of oil (and the USSR) in the late 80s, early 90s. I doubt we learn from our mistakes.

 

[Justinw303 10+ year member]

OPEC isn't as powerful as they would seem. It is a cartel afterall, and though they may say they're planning to cut output, with prices dropping, you know a few of them will try to screw the others and keep selling before prices drop even further...

 

[Flipx99 5,000+ posts]

OPEC isn't as powerful as they would seem. It is a cartel afterall, and though they may say they're planning to cut output, with prices dropping, you know a few of them will try to screw the others and keep selling before prices drop even further...

That's what happened last time with Saudi Arabia.