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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (9187)	9/11/2006 1:37:49 PM
From: Rolla Coasta	Respond to of 219500

everyone knows this oil correction is a bear trap. It is not a plenty of oil that is the issue. The issue is whether there's enough refining capacity in US & everyone else.

To: elmatador who wrote (9187)	9/11/2006 9:52:17 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 219500

ElM, there is oily stuff all over the place. What matters is the cost of production, which has been going down as difficulty or access has increased. In the beginning, oil leaked out of the ground in New Plymouth. Onshore wells found some oil. Easily accessed, but expensive to dig with old technology. The biggie was Maui, way offshore, in pretty deep water, with a huge platform needed in the ocean to get it. Now, the latest production is Pohokura and the drill is on land, with the drill going down, then curving out under the ocean and drilling right along the strata with the oil in it. Very cheap way of getting oil out of an impossible place only 30 years or so ago. Ethanol is too expensive. It works in economically odd places like Brazil and the USA where agricultural protectionism or poverty makes it worthwhile, along with a climate good for crops. People on $40 an hour won't be cutting sugar cane for ethanol for SUVs, that's for sure. Even $10 an hour would make it uneconomic I guess. It's not good that people work for little. People should do much more useful things than cutting cane. Which is probably not how the cane is cut, but you know what I mean. Cheap people makes a lot of silly things look like a good idea. Mqurice