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$40 a barrel in the medium term, before falling towards $25 in the long run!?

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posted on Jun, 12 2006 @ 01:51 PM
Today the chief executive of BP, Lord Browne, did an interview with the german paper Der Spiegel. Since BP is one of the largest oil companies in the world, it's interesting to note his predictions of oil again beeing priced in the $40 - $25 range.

BBC News - from Der Spiegel
"We cannot really count on oil prices easing very much in the near future," Lord Browne told Der Spiegel in an interview due to be published on Monday.

"But is very likely that oil prices will range in the medium term around an average of $40," he continued. "In the long run it could even be $25 to $30."

Lord Browne said that companies were finding large oil deposits in the Caspian Sea, while there was good production potential in countries such as Russia and regions including Western Africa.

He also said that improved efficiency would help boost crude extraction.

"In the past we managed to get out 20% to 30%," Lord Browne said. "At the moment it's maybe 40% to 45%. I can see no reason why we could not reach 50% or 60%."

Now this sounds like one optimistic guy

What does he know that Alan Greenspan doesn't?

Herald Tribune - june 7.
Alan Greenspan, the former Federal Reserve chairman, offered a grim view on Wednesday of the world's rising vulnerability to high crude oil prices, saying he was skeptical that oil producers could pump enough crude to meet future demand.

I know the oil prices rose a little after al-Zarqawis death.
Then they fell a little after "Alberto" is said to clear away from platforms in the Mexico Gulf.

But that europeans are buying more and more green energy will eventually lead to $25 a barrel, is yet to be seen.

Does anyone know the timespan of Mr. Lord Brownes "in the medium term"?

posted on Jun, 12 2006 @ 02:03 PM
I do wonder, as less and less oil is needed overseas, due to closer supplies (the closer they are, the cheaper they are) Are we in America going to feel the benefit?

To truly compete, American oil companies are going to have to be price competitive against all these new guys on the block... which goes against every citizen raping method of doing business that they live by...

Are they going to artificially increase the price, to boost profits? Do they think they can convince us that the price is fair, when other coutries overseas (which usually pay more, per volume) are paying less?

With Cheneys Big Oil buddies making the moves, i suspect so...


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