Wave,
1) Iran has said it will be August before they decide on evaluate terms if any.
2) Nigeria, Delta is restless
3) Russia is curbing foreign majors
4) Chavez is an azz
5) India is waking up
6) Equador has problems
7) War in Iraq
8) Bolivia is changing
9) China is still growing
10) European demand for diesel will increase 20% by 2015
11) China is building facilities to store 100,00,000 BBL in their oun SPR
Sure oil may not be at $70 forever but it is not going down to $30 either. Many countries loved the foreign majors when oil was $10 - $20 a BBL but now they want the majors out so they can enjoy the income for their own uses.
The US imports half of its crude demand. The market loves a DOMESTIC producer. I see a correction coming again. I would love to see oil at $50 - $58. There the economy moves along and inflation pressures are way less.
Even the DOE has placed the average price per BBL at $65 for all of 2006 and their numbers are always conservative.
Shell has thousands of employees working on the question of "Were is the price of crude going?"
Shell just nailed BlackRock Ventures in Canada's oil sands patch for a record price paid, they also paid the all time record price for less than great oil sands lease up there.
If shell thinks like that then I think some people smarter than us believe that the price of oil will be over $50 per BBL for a long time.
The market loves a domestic producer... Production just does not happen over night.
PS
I think over the next two years Connacher Oil & Gas and PetroBank will be the next two mega take overs in the oil sands patch.
“I got a great deal on some French WW2 army surplus guns. Never used and only dropped once...”
