How long will oil stay so cheap?

[GASWAGON]

Petrol prices are back down near the $1.00 per litre mark again which is just fantastic at the moment.

I am wondering how long all this cheap crude oil is going to last?

Will it be 6months or a year or will it stay as cheap as it is for many years ahead?

Would be great news if its going to stay at rock bottom for a few years!

[Trump]

As long as the US is pumping record amounts of shale oil, they will stay low.

[Junkyard-Dog]

I notice that Iraqi government forces just declared that they've won a key battle against ISIS for the reclamation of Fallujah.

[wozman]

$118.8 here

[GASWAGON]

Originally Posted by wozman

$118.8 here

I just filled up with E10 @$1.02 per litre.

Cant believe how cheap petrol AND diesel are still.

Too good to be true!

[wodahs]

Originally Posted by wozman

$118.8 here

can find ulp @ around 1.07 here tomorrow

[2011G6E]

We were told in the seventies that the oil would "all be gone" by the late 1990's. Then in the eighties we were told "by shortly after 2000" it would all be gone.
Now we're well into the start of the 21st century and there's no end in sight...constant new discoveries are being made, oil that was once unrecoverable is now easily extracted, cars are more and more fuel efficient and powerful than we ever imagined.

Not to mention...what do people think powers world commerce going all over the globe in massive container ships and air freight? Hint: it's not unicorn flatulence and fairy dust...

Without even getting into the worlds "virtually inexhaustible" supplies of coal...many centuries worth just under Queensland even taking into account increasing future demand. Coal can be processed into fuel as well.

[Qwerty321]

Pretty much what 2011G6E said. Humanity is going to keep churning out oil (natural or synthetic) from literally every nook and cranny until global warming has this planet looking like Mars, and when that day comes we'll all either be living in some futuristic dome cities or colonising other planets and extracting their resources.

I think oil will remain "cheap" for a while to come. The thing with oil is as the price goes up, sales goes down, and the free market is going to strike the perfect balance that gives the companies the largest profit. So ultimately oil's going to end up teetering on that exact price where we'll all complain about it, but it's not costly enough to stop the general mainstream public buying it and using it. Of course accounting for inflation, the price will always go up, just our salaries will go up to match it.

[Madaya]

With the expansion into main stream renewables, electric cars etc. Oil may be cheap forever. That does not mean you will be allowed to drive your car on a road forever.

[Qwerty321]

Originally Posted by Madaya

With the expansion into main stream renewables, electric cars etc. Oil may be cheap forever. That does not mean you will be allowed to drive your car on a road forever.

Doubt it for two reasons. 1) We're a democracy and the government would never do something that would affect the vast majority of the population. If any government in the foreseeable future bans cars then the opposition will promise to repeal that and will certainly win the next election. 2) Car manufacturers and Oil companies are far too powerful and will lobby extremely strongly against such moves.

[anto]

Originally Posted by Qwerty321

Pretty much what 2011G6E said. Humanity is going to keep churning out oil (natural or synthetic) from literally every nook and cranny until global warming has this planet looking like Mars, and when that day comes we'll all either be living in some futuristic dome cities or colonising other planets and extracting their resources.

I think oil will remain "cheap" for a while to come. The thing with oil is as the price goes up, sales goes down, and the free market is going to strike the perfect balance that gives the companies the largest profit. So ultimately oil's going to end up teetering on that exact price where we'll all complain about it, but it's not costly enough to stop the general mainstream public buying it and using it. Of course accounting for inflation, the price will always go up, just our salaries will go up to match it.

Didn't you get the memo ? Its Climate change my friend, gotta have all the bases covered

[malazn mafia]

Wondering how long LPG prices will stay the way they are. They are at 2007-2008 levels now and seem to be falling. In 2013-14, they became so expensive that gas kits were basically fit for the garbage tip as there was hardly any advantage vs running 91 ULP.

[GASWAGON]

Originally Posted by malazn mafia

Wondering how long LPG prices will stay the way they are. They are at 2007-2008 levels now and seem to be falling. In 2013-14, they became so expensive that gas kits were basically fit for the garbage tip as there was hardly any advantage vs running 91 ULP.

Yes bulk propane and butane prices are presently the cheapest they have ever been in the last 10 years.

Pump price for LPG should be around the 40c mark but for some reason its not?

And with petrol/diesel being so cheap at the moment its surely not doing the LPG industry any favours.

Oh well i'm just happy that thers so much crude oil available as I presently drive a BF I6 which is great on fuel anyways but i still like cheap petrol.

[mike_nofx]

Originally Posted by anto

Didn't you get the memo ? Its Climate change my friend, gotta have all the bases covered

I like to point out to the latte sipping nancy boys that 'climate change' was once referred to as Summer, Autumn, Winter and Spring.

[2011G6E]

Originally Posted by Qwerty321

Doubt it for two reasons. 1) We're a democracy and the government would never do something that would affect the vast majority of the population. If any government in the foreseeable future bans cars then the opposition will promise to repeal that and will certainly win the next election. 2) Car manufacturers and Oil companies are far too powerful and will lobby extremely strongly against such moves.

It might work in tightly packed countries which actually DO have an urban traffic problem...large cities in the USA, big swaths of Asia, places in Europe, etc...however in vast empty Australia private car ownership is a necessity.
won't happen here.
Although idiots have tried to tell people in remote areas that "public transport can cut down private car usage" and is the definite way of the future.

[GASWAGON]

O.k so it sounds like the entire planet has cheap petrol/diesel for many years to come.......Yeehaa.

That really makes me happy.

And ye climate change is just a load of bollocks!!!

[new2ford]

Paid $1.45 in Sydney this afternoon, so the answer to the thread title is "one day". Time to close the thread!

[irish2]

Originally Posted by Qwerty321

Pretty much what 2011G6E said. Humanity is going to keep churning out oil (natural or synthetic) from literally every nook and cranny until global warming has this planet looking like Mars, and when that day comes we'll all either be living in some futuristic dome cities or colonising other planets and extracting their resources.

I think oil will remain "cheap" for a while to come. The thing with oil is as the price goes up, sales goes down, and the free market is going to strike the perfect balance that gives the companies the largest profit. So ultimately oil's going to end up teetering on that exact price where we'll all complain about it, but it's not costly enough to stop the general mainstream public buying it and using it. Of course accounting for inflation, the price will always go up, just our salaries will go up to match it.

Might want to have a look at some facts the climate scientists haven't cherry picked. This graph shows atmospheric CO2 versus volcanic activity. Notice that currently we are basically at the lowest atmospheric carbon level in the earths history. Even NASA agrees that the little tiny bump over the past century has sped up the growth of plants. Now if only we could stop cutting down the plants.

http://imgur.com/HdYFl8k

[Adamz Ghia]

If this is going to turn into a global warming thread please hang on while I go and get the popcorn!

[2011G6E]

And just think...as cars get more and more efficient, using less and less petrol (and therefore oil), there's going to be more fuel left over for those of us with old cars and bikes.

Interestingly, there are also reserves of oil we "ignore" because of their location.
Back in the early eighties when Joh was in power in Queensland, a French company was allowed to do exploratory seismic surveys on the continental shelf out on the other side of the Barrier Reef. This was quickly squashed by Greenpeace and green activists who got a federal injunction out against it...partly this is what led to the Reef being declared a World Heritage site.
Anyway, after the French were stopped, they reported there was every indication of vast oil reserves out there...which is kind of where you usually find oil, on the edge of continental shelves as in other places around the world with offshore drilling platforms.

It's there...just waiting for the world to need it badly enough to tell Greenpeace to bugger off...

[Qwerty321]

Originally Posted by new2ford

Paid $1.45 in Sydney this afternoon, so the answer to the thread title is "one day". Time to close the thread!

I consider anything less than $2 a little to be cheap. I still remember when I got my first car and started driving 3 years ago the price of 91 octane was about $2.10 a litre and my ol Lexus insisted on atleast 95 octane. Considering the servos in my neighbourhood only did 91 or 98, I was forking out about $150 for a full tank and that doesn't last very long when you have a 3L V6 that loves the high revs 😂

[b0son]

Originally Posted by Qwerty321

Pretty much what 2011G6E said. Humanity is going to keep churning out oil (natural or synthetic) from literally every nook and cranny until global warming has this planet looking like Mars

The tech exists now to turn atmospheric CO2 into hydrocarbons using solar power. Renewable petroleum.... Its just a matter of scaling up.

The moment the major car companies start offering their own electric vehicles at something less than Tesla's boutique pricing, the market for petrol-powered cars will be on a downward slide. You'll know we're at this point when Coles/Woolies get out of the petrol game.

[2011G6E]

Listening to a podcast today of the ABC Science Show. It was one from a couple of years back, talking about using engineered blue-green algae to produce oil. It's pretty basic, easily done, and can be done on a huge scale quite easily. Algae already converts atmospheric CO2 into oxygen and sequesters the carbon. A simple modification to these simple life forms means they can form other long chain carbon molecules...like the ones in crude oil.

So win-win...gets rid of excess CO2 in the air, creates more oxygen, and as a byproduct it makes crude oil...

Forget solar and wind...this is the future...

[Hardtopxb]

The Arab suppliers need to sell oil at whatever price they can affordably sustain. At the moment the price per barrel is low because of supply outside of the middle east.. Period.

[b0son]

Originally Posted by Hardtopxb

The Arab suppliers need to sell oil at whatever price they can affordably sustain. At the moment the price per barrel is low because of supply outside of the middle east.. Period.

Some politicking going on there? Is this largely US oil?

[GASWAGON]

ULP has just jumped 30c per litre overnight in Melbourne.

Its now around $1.30 per litre.

Anyone know why this has happened?

[mik]

I used to always think when hearing the doom stories about oil that it will price us motorists out of owning a car , but .......... there is absolutely no value in it for oil/fuel companies if people stop buying their product , and as the world economy imo is teetering on the knifes edge of recession imo once again , and also there is a lot of uncertainty around the globe which can lead people to keep saving pennys rather than spending them on unnecessary stuff like travel , etc ,etc , i doubt that we will see the bad old days of near $ 2.00 a litre for some time , unless some out of the ordinary event occurs .
That is my take on it anyway .

[Junkyard-Dog]

Originally Posted by b0son

Some politicking going on there? Is this largely US oil?

No, they just think it is.

[GASWAGON]

Originally Posted by mik

I used to always think when hearing the doom stories about oil that it will price us motorists out of owning a car , but .......... there is absolutely no value in it for oil/fuel companies if people stop buying their product , and as the world economy imo is teetering on the knifes edge of recession imo once again , and also there is a lot of uncertainty around the globe which can lead people to keep saving pennys rather than spending them on unnecessary stuff like travel , etc ,etc , i doubt that we will see the bad old days of near $ 2.00 a litre for some time , unless some out of the ordinary event occurs .
That is my take on it anyway .

Yes the world is on the edge of a global wide recession.

Thats why i was so surprised at the present 30c per litre jump for ULP.

Hopefully it does'nt last very long and we will be back at $1.00pl very soon?

[bobthebilda]

Cant remember petrol prices being this cheap for a while now. Most stations around Adelaide have unleaded around the 93 cents a litre, and Costco has it down to 87 cents a litre. With excise and GST accounting for about 49 cents a litre, they are just about giving it away these days.