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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (34052)	8/2/2004 10:55:10 AM
From: Umunhum	Read Replies (2) \| Respond to of 206329

<If the international oil companies thought there would $80 oil by 2008 you would see investments in going gang busters for drilling and oil sand etc. Doesn't think you will see anything like those prices.> I disagree. The cheapest oil can be found on the stock exchanges. That's why there has been so many mergers and stock buy backs. According to Colin Campbell, oil is normally found in large quantities and a great majority of it is profitable to produce at $20. The marginal well is the exception not the rule. Compared to oil, oil sands have a very low Energy return on energy invested. It takes two tons of sand to yield one barrel of oil. There are limits to how fast you can mine the sands and therefore ramp up production. I've read that it takes 2 out of every 3 barrels recovered just to pay for the energy costs involved in getting the oil out of the sands. It is doubtful that oil sands can produce 5% of the annual worldwide energy demand. In the big picture that is less than one year's depletion. I believe we are headed far higher than $80 a barrel. I think that a depreciating dollar is going to be a good portion of the rise though.