Quote Originally Posted by nightflier
Now back to Pix's comments about oil. There is one big problem with deep oil reserves off the coasts of Brazil and other places (Madagascar, Cote D'Ivoire, etc.) and that is that this is expensive to extract. Likewise for oil in sand drifts - very expensive to extract. Now if the price of oil is $100+ a barrel, that's feasible, but now now. It's an inverse relations that does not work when the economy world-wide is in shambles. I'm fairly certain that Opec will raise prices after the Dec. 17th meeting, but this is probably going to be a slow increase over time. There is just too much pressure from every Western consumer nation to do otherwise. This is also why speculative green technology funds have been hammered, because while there is a future in the technologies, the profits are too far off and that distant horizon isn't immune to various other events that could alter or extend returns. Simply put, it's too risky right now.

And while we may be a carbon-consuming society, that does not change the fact that we are also a carbon-based life form who's makeup is mostly water. The kind of cavalier attitude that Pix is suggesting is not in tune with the changes we are seeing all around us. Fortunately, we have a new president who is aware of that, finally.
Bang on...much of the reason for the current price drop is that demand in emerging markets in Asia et al has slowed to snail's pace, boosting supplies short term while demand is waning. There's a saying in my industry though, "the best cure for low oil prices is low oil prices". There will be less drilling at current crude prices, less oil sold, this will eventually lead to reduced supplies and greater relative demand.

Just a matter of time.