<More Coal Equals More CO2 The Oil Drum DrumBeat: October 23, 2006>

21 comments on Further to your comments on Gazprom

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Marco on October 23, 2006 - 6:10am Permalink | Subthread | Parent | Comments top
"But if it does, it cannot be considered a reliable partner and supplier in long term contracts and obligations"

We choose to buy the Gas from them. Why? because there is no one else to buy it from. If you do not like a shop you buy somewhere else. And if you can't then you have to lump it. Tough. Are you telling me that there is pleny of gas elsewhere? I can assure you, in Europe there is not.

"After the Arab boycott of Western nations, the Western customers went on a mad dash of investment and contracts with non-OPEC nations to supply oil, viewing OPEC as an un-reliable supplier."

So are we making a mad dash for the arctic? And can it supply 28MBPd?

"Have you seen many Russian or Venezuelian cars or TV's lately?"

No, but i haven't seen many British or American cars lately either :-).

As for the Saudi announcement not affecting price, i'd previously posted that I though there was $20-$25 riding on the price graph, so if 'they' bail we see corrections.
It will be a while before 'they' jump back on the rollercoaster again. Remember that's not the only thing recently that should have put the price up but didn't. Theres been PLENTY of bad stuff happening and no reason for let up in demand. No recession ......yet! Right now the market is defying logical explanation.

Marco.

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oilmanbob on October 23, 2006 - 11:06am Permalink | Subthread | Parent | Comments top
Marco, the market is not "defying rational explanation". I think the biggest problem is the collapse of Amarynth, because it showed the Hedge Funds how vulnerable they were in gambling on commodities. Less money chasing speculative profits means less demand even if actual useage has not changed dramaticially.
  IMHO the real stock deals are in first class oil service companies, folks like Schlumberger and Baker-Hughes.  Peak oil is a reality, and they will stay busy at high rates for the forseeable future.
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mbkennel on October 23, 2006 - 4:10pm Permalink | Subthread | Parent | Comments top
In the longer run, coal (unfortunately) and uranium are adequate though less environmentally/economically preferred substitutes for CH4.

Russia has less leverage, long term, than it thinks.

The really big problem remains liquid transportation fuels, and whoever can make those really win.

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mjacobspaj on October 23, 2006 - 6:02pm Permalink | Subthread | Parent | Comments top
If prices get high enough supply unreliable enough then the option exists to invest heavily in alternate renewable energy resources and conservation technologies.

If Putin can convince Europe and North America to go the converation and alternate renewable energy route, I think I'm going to be a Putin fan.

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21 comments on Further to your comments on Gazprom

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