[PhishPhood]

For those an interest in data and statistics, from 'The Oil Drum: Europe'

Here is a link to a discussion of the statistics behind the supply situation today. It's enlightening and eye-opening.
http://europe.theoildrum.com/node/4007#more

Some of the key issues:
...for prices to remain 'stable' the rate of new production added has to include additional demand + the loss of productivity in existing fields
...certain countries such as Indonesia have gone from net exporters to net importers due to it's own growth ( essentially what we went through about 60 yrs ago )
...the yield in energy produced from some of the new sources, Canadian tarsands for example, is significantly less than from the easy-pickin's in Texas and Saudi.

 

[New_Mexico_Sunset_on_Rt66]

From my understanding the tarsands in Alberta contains upto 300 billion barrels. Under current technology, some estimate that we could recover upto 170 billion barrels. With costs expected to be an estimated $60 a barrell to extract that and remain profitable.

The price of oil would drop dramatically if that was opened up, and Congress announced overnight that it was going to lift the current exploration and drilling bands on the Pacific, Atlantic and Gulf continental shelfs, and within Alaska.

Bear in mind ya 'all, that the supply has been artificially limited due to the current bans imposed by Congress. That is affecting the price we are all paying.

 

[johnstarnes]

I read an article by an economist yesterday stating that had the Iraq war not occured, oil would be at $40 per barrel today based on standard market pressures. By his analysis the war unleashed multiple uncertainties (like is Iran next?) and fears and thus provided the raw fodder for the speculators. Sure makes sense to me that an ongoing war that threatens to expand in the world's primary cluster of oil producing nations next to the Straits of Hormuz could rock basic market stability for oil, just like a freeze here in Florida sends citrus through the roof, with damage to the trees themselves causing a long period of supply uncertainty.