OIL PRICES IN FURTHER DECLINE
I would hate to be Mr Putin at the moment or even into the future. With many of his oligarch buddies’ lives in tatters after being previously huge oil speculators and now out of the market, the world (as I have always maintained anyway) is awash with oil and today’s prices are reflecting close to what the true value of oil should be. Those buffoons with their brightly colored dust coats in the trading pits of the Mercantile Exchanges no longer have five phones pinned to their ears because the honeymoon is over. Experts believe prices for light sweet crude could even drop below $20.00 per barrel by summer and it is such a shame we will not be in any mood to dance on the graves of the oil companies and speculators.
In the new world environment, I believe we never need to worry about speculators ever again. Once summer arrives we also don’t need to concern ourselves with Russia’s bullying and anti American tactics and as for that fat little fool Chavez, in Venezuela, he had better head for the jungles of Columbia right now. His peoples will want to string him up when their economy goes to hell in a hand basket and they realize how this wretched “Napoleon” squandered the country’s future. Dubai is going to look the most ridiculous ghost town on earth. Maybe they should offer up all those vacant apartments to bin Laden and all his terrorist mates from Pakistan to London. Bin Laden and his army must be sick of hiding in those hell holes of caves by now and quite frankly I can only imagine a possible Arab immigrant/refugee wanting to take up residence in any Middle Eastern country that has plenty of accommodation on offer.
What is going to happen to the large Western-owned oil companies? BP has been smart over the past ten years and I think in this new environment of alternative energy they will play a leading role in grabbing market share. Shell is in decline as its reserves dwindle and the cost of exploration that will not yield any returns will mean it will merge or fade away. Chevron has adopted a similar approach to BP but does not enjoy good public relations. Exxon Mobil in a nutshell is reviled, almost as badly its founder, John D. Rockefeller was in his heyday. Mergers will continue as the “Super Majors” (Exxon-Mobil, Shell, BP, Chevron, Conoco Philips and Total of France) carve up the smaller pie for a bigger slice. On the other hand I think India’s and China’s late entrance into investing in oil is ill-fated and I see a quick exit once they realize they have lost their shirts.
It is such a shame that the era of a buck plus per gallon for gasoline really won’t influence our lives positively for a few years to come, but when life does return to normal we will face a new era, being ripped off by the suppliers of alternate energy! Our only savior will be the government protecting us with legislation that protects us from the ensuing greed and avarice of the new generation of rip off merchants!
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