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Washington - CEO Of Gulf Oil: $20 A Barrel Soon |
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While oil has tumbled more than $100 off its $147 a barrel high in the summertime, the price of US light, sweet crude could yet move as low as $25, and even $20 if current conditions persist, Gulf CEO Joe Petrowski said on CNBC.
"Oil's got some more downside," Petrowski said. "Whether it hits $20--could--but I think $25 is in the cards."
Several factors are critical in the move lower, particularly the pressure set against traders in the oil markets, and the control sovereign foreign governments, as opposed to private entities, have exerted on the market since the summer price shock that sent gasoline prices at the pump above $4 a gallon.
"They have a tendency to sell more on the way down, not less," Petrowski said of the governments ruling the energy trade.
In all, he thinks those who believe oil is due for a rebound aren't seeing the global economic factors that are playing into energy prices.
"There are things setting up in the oil markets that I think will give us lower prices, much lower prices, than we're all expecting," Petrowski said. "The down side is still well in gear."
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Read Comments (40) — Post Yours »
1
Dec 26, 2008 at 10:07 AM Anonymous Says:
can't wait to see a sign at the gas pump .29 cents a gallon
2
Dec 26, 2008 at 10:05 AM robroy560 Says:
Don't worry... flooding the econonmy with dollars will equal inflation in commodities.
So, we have $100 again under Lord Obama's rule.
The best way to keep this down is drill more here, but that won't happen because the short-sighted folks won't do it when oil is high. Plus Congress will have rubber band powered cars for us soon.
3
Dec 26, 2008 at 09:56 AM Anonymous Says:
Now this is what I call a miracle.
4
Dec 26, 2008 at 09:47 AM yossi Says:
what a NES chanukah you will fill up ONE tank of gas and will be enought for * tanks.....
5
Dec 26, 2008 at 10:13 AM Anonymous Says:
Baruch Hashem
6
Dec 26, 2008 at 10:43 AM honda Says:
I filled up my good ole honda stick the other day in south jersey for a mere $12 bucks at a $1.49 a gallon
7
Dec 26, 2008 at 10:39 AM murray Says:
“ Don't worry... flooding the econonmy with dollars will equal inflation in commodities.
So, we have $100 again under Lord Obama's rule.
The best way to keep this down is drill more here, but that won't happen because the short-sighted folks won't do it when oil is high. Plus Congress will have rubber band powered cars for us soon. ”
with barrel prices dropping why are all the major oil company stocks up today (as of 10am- All UP)
8
Dec 26, 2008 at 10:39 AM Anonymous Says:
Those greedy oil companies and OPEC, they finally hit the point where people and governments will permanently alter their consumption so they'll never be hit with unexpected high prices again. No matter how low oil prices go. You know what they say, what goes around comes around...
9
Dec 26, 2008 at 10:35 AM why bother drilling Says:
“ can't wait to see a sign at the gas pump .29 cents a gallon ”
Is that roughly the actual price per gallon based on $20.00 barrel?, I think at $20 it is probably 49cents- but that wouldn't be too shabby either.
10
Dec 26, 2008 at 11:03 AM Anonymous Says:
“ Don't worry... flooding the econonmy with dollars will equal inflation in commodities.
So, we have $100 again under Lord Obama's rule.
The best way to keep this down is drill more here, but that won't happen because the short-sighted folks won't do it when oil is high. Plus Congress will have rubber band powered cars for us soon. ”
Talk about short-sighted.
Drilling is at best a short term solution.
You've been listening to too much talk radio. Go to the big shul on Avenue P and Ocean Parkway. Go in thru the side entrance and you will find a table full of CDs of great shiurim and drashos. Keep some in your car and stay away from Rush hour.
11
Dec 26, 2008 at 11:10 AM Anonymous Says:
“ Is that roughly the actual price per gallon based on $20.00 barrel?, I think at $20 it is probably 49cents- but that wouldn't be too shabby either. ”
You will never see 29 cent a gallon gas here in NYC. You can bet Paterson & Bloomberg are gonna do all they can to capture the slide in prices by jacking up the taxes for a gallon of gas. You can bet on it! While even the Feds realize that you have to cut taxes by putting more money in peoples's pockets during a severe recession, these guys just do the opposite by raising taxes. It's a self-defeating process where more people and companies will just move out of NY entirely and move to a low tax state.
12
Dec 26, 2008 at 11:08 AM Anonymous Says:
“ Is that roughly the actual price per gallon based on $20.00 barrel?, I think at $20 it is probably 49cents- but that wouldn't be too shabby either. ”
Is there a real formula to figure out gallon at the pump prices based on crude by the barrel price?
13
Dec 26, 2008 at 11:05 AM Anonymous Says:
“ I filled up my good ole honda stick the other day in south jersey for a mere $12 bucks at a $1.49 a gallon ”
$1.39 two days ago in Wallington, NJ
$1.37 today all along 1 & 9 between Route 3 and the Holland Tunnel.
14
Dec 26, 2008 at 10:55 AM Anonymous Says:
They are afraid of electric and Battery cars!!! Look at NY times article today about the battery cars!
15
Dec 26, 2008 at 10:49 AM robroy560 Says:
“ Is that roughly the actual price per gallon based on $20.00 barrel?, I think at $20 it is probably 49cents- but that wouldn't be too shabby either. ”
Don't forget all the federal, state and local taxes that go into a gallon.
16
Dec 26, 2008 at 10:48 AM robroy560 Says:
“ with barrel prices dropping why are all the major oil company stocks up today (as of 10am- All UP) ”
I think oil broke its 9 day losing streak
17
Dec 26, 2008 at 10:45 AM murray Says:
“ Now this is what I call a miracle. ”
Not so fast with the celebrations. Consider the source of this "good news"- the CEO of Gulf Oil Corporation. I just did a search on the internet about this company, and I quote " Gulf Oil Corporation ceased all operations in 1984", so who is this guy making predictions?
18
Dec 26, 2008 at 11:28 AM Anonymous Says:
i filled my smart car for 6.95 tank full
19
Dec 26, 2008 at 11:14 AM Charlie Hall Says:
“ Don't worry... flooding the econonmy with dollars will equal inflation in commodities.
So, we have $100 again under Lord Obama's rule.
The best way to keep this down is drill more here, but that won't happen because the short-sighted folks won't do it when oil is high. Plus Congress will have rubber band powered cars for us soon. ”
It won't happen because you can't produce oil in the US for $20 a barrel and make money. There will be massive unemployment in Louisiana, Texas, and Alaska if the price drops that low. We will probably be hearing calls for a bailout of the oil industry.
20
Dec 26, 2008 at 12:09 PM puppydogs Says:
“ Is there a real formula to figure out gallon at the pump prices based on crude by the barrel price? ”
Yeah, its called charge whatever they want
21
Dec 26, 2008 at 12:01 PM Anonymous Says:
“ They are afraid of electric and Battery cars!!! Look at NY times article today about the battery cars! ”
that's what i wanted to say. there is no other good explanation.
22
Dec 26, 2008 at 11:53 AM mayer Says:
“ Don't worry... flooding the econonmy with dollars will equal inflation in commodities.
So, we have $100 again under Lord Obama's rule.
The best way to keep this down is drill more here, but that won't happen because the short-sighted folks won't do it when oil is high. Plus Congress will have rubber band powered cars for us soon. ”
This drop in prices is thanks to them being scared from the abama administreation
23
Dec 26, 2008 at 12:44 PM Anonymous Says:
“ This drop in prices is thanks to them being scared from the abama administreation ”
WRONG!!!!
This drop in prices is unfortunately the "credit" of the Bush administration for flushing the economy down the toilet!!! By spending & spending & waisting money down the drain like a drunken liberal....
So let's give credit where its due.
24
Dec 26, 2008 at 12:39 PM Anonymous Says:
“ This drop in prices is thanks to them being scared from the abama administreation ”
You are a naïve obama coolaid drinker...
If the prices would've been high now, you would blame the Bush admin. So why not credit him if the prices are down??
25
Dec 26, 2008 at 12:23 PM puppydogs Says:
“ Not so fast with the celebrations. Consider the source of this "good news"- the CEO of Gulf Oil Corporation. I just did a search on the internet about this company, and I quote " Gulf Oil Corporation ceased all operations in 1984", so who is this guy making predictions? ”
Maybe the parent company changed their name, but I bought gas at Gulf last week.
26
Dec 26, 2008 at 12:54 PM Shteig Says:
Why are you all so happy ?-its down because we are in a depression. It is like being in Darfur and celebrating their weight loss program
27
Dec 26, 2008 at 01:21 PM rocky Says:
“ Maybe the parent company changed their name, but I bought gas at Gulf last week. ”
The Gulf Oil that died in the 80s was a major integrated oil company based in Pittsburgh Pa. The Gulf Oil CEO cited here is from a small retail operation.
28
Dec 26, 2008 at 01:19 PM rocky Says:
oil is dropping now but once world economy recoveries and demand picks up if we do not have alterbatives in place or under development we will be back at high prices. Oil id not infinite and enemies of the USA have a ton of it. America needs to be free of forgein oil and the way tp do that is through solar, nuclear, wind,conservation, intelligent biofuels, drilling at home (with good stewardship of the environment) and anything else we can develop.
As an energy consultant we can celebrate the lower prices (at the expense of the economy) but we must not stop looking at the impact of oils end.
29
Dec 26, 2008 at 01:15 PM murray Says:
“ Why are you all so happy ?-its down because we are in a depression. It is like being in Darfur and celebrating their weight loss program ”
Exactly. Also like someone in Zimbabwe getting a huge pay raise, like maybe 10 Million (Zimbabwean) Dollars a week...........enough to (maybe) buy a pack of cigarettes.
30
Dec 26, 2008 at 01:26 PM Anonymous Says:
“ Not so fast with the celebrations. Consider the source of this "good news"- the CEO of Gulf Oil Corporation. I just did a search on the internet about this company, and I quote " Gulf Oil Corporation ceased all operations in 1984", so who is this guy making predictions? ”
Gulf oil ceased refinig their own oil in 1984. Now they buy oil from other companies and sell them at their own stations.
31
Dec 26, 2008 at 01:58 PM Anonymous Says:
“ oil is dropping now but once world economy recoveries and demand picks up if we do not have alterbatives in place or under development we will be back at high prices. Oil id not infinite and enemies of the USA have a ton of it. America needs to be free of forgein oil and the way tp do that is through solar, nuclear, wind,conservation, intelligent biofuels, drilling at home (with good stewardship of the environment) and anything else we can develop.
As an energy consultant we can celebrate the lower prices (at the expense of the economy) but we must not stop looking at the impact of oils end. ”
Don't act so naive. Oil has gone up because of one word, greed. Why did'nt the US do all these things that you mentioned right after the first oil embargo by OPEC in 1973? Because the oil industry and OPEC have been lubricating our politicians and political system with cold, hard, cash. And the biggest run-up in oil prices just happened with Bush, who along with his father have long known ties to the oil industry. Surprise, suprise.
32
Dec 26, 2008 at 02:37 PM Anonymous Says:
There is only one solution: NATO takes over every Middle East country and their oil fields. If anyone protests, remind them of Hiroshima and Nagasaki.
33
Dec 26, 2008 at 03:21 PM Anonymous Says:
Saudi Arabias break even is $2 per barrel
All around the world there is an increase in capacity and supply.
34
Dec 26, 2008 at 04:06 PM Oil man Says:
Hello it costs more to drill in the us because you have to pay workers A LOT MORE MONEY
35
Dec 27, 2008 at 08:57 PM Charlie Hall Says:
“ Gulf oil ceased refinig their own oil in 1984. Now they buy oil from other companies and sell them at their own stations. ”
The old Gulf Oil was forced to merge with Chevron in the 1980s. Chevron has licensed the Gulf name to Mr. Petrowski's company, which sells petroleum products through convenience stores using the Gulf brand. In parts of the United States they are a major gasoline retailer.
36
Dec 27, 2008 at 08:38 PM mordy Says:
Tziyus is probably one of the most challenging mitzvahs out there for woman today. There is a very strong current in the world today to dress with great modern style. There may even be peer pressure to dress in a less modest way. There are many easy to go about trying to influence people to better ways. This is a stronger moiré aggressive approve.
37
Dec 27, 2008 at 11:11 PM Aron Says:
“ Tziyus is probably one of the most challenging mitzvahs out there for woman today. There is a very strong current in the world today to dress with great modern style. There may even be peer pressure to dress in a less modest way. There are many easy to go about trying to influence people to better ways. This is a stronger moiré aggressive approve. ”
Let me get this straight. If oil falls to the $20 - $25 range there will be an increase in tznius problems?
Why? Will people be driving in convertibles with the top down?
38
Dec 28, 2008 at 12:23 AM tzvi99 Says:
in nyc we close to 65 cents of every gallon go for tax's
39
Dec 28, 2008 at 02:11 AM Drill Here! Drill NOW!! Save Money!! Says:
Its simple. Till we drill here we will be at the mercy of opec and every other country out there that hates us till we give em a buck or two. Of course with Obama and his Chicago thugs in power there will be no drilling and no more refineries which we also need. The libs are killing the country!
40
Dec 28, 2008 at 10:24 AM Charlie Hall Says:
“ Its simple. Till we drill here we will be at the mercy of opec and every other country out there that hates us till we give em a buck or two. Of course with Obama and his Chicago thugs in power there will be no drilling and no more refineries which we also need. The libs are killing the country! ”
You are correct about the need to drill, but you are incorrect about everything else. Oil companies are sitting on leases that contain millions of barrels of oil that they could drill for, but don't. The reason is that they can't get the oil out of the ground and sell it for the current low price while making a decent profit. The only way that we will drill is if the government massively subsidizes it -- or if the price of oil goes back up and stays there for a long time. I guess since we've already bailed out the banks and will shortly bail out the auto industry it makes sense to subsidize the oil companies?
There may be some relief regarding refineries as voters in South Dakota recently approved a new refinery that will be one of America's largest -- and cleanest. If it actually gets built -- and that is not certain since the price of oil has collapsed -- it will be the first *new* refinery in the US in over 30 years. What happened is that like most manufacturing industries, the oil industry realized that it is more cost-effective to run plants at full capacity, and that it is also less expensive to make improvements to existing plants than to build new ones. Why should the oil industry waste its stockholders' money by building refinery capacity that won't get used? Or should we taxpayers subsidize them?
Don't blame liberals for the free market!