I reading the research report, and people are missing a big thing. They estimate that super-spike potential WTI prices are: 2005e --> $50 2006e --> $75 2007e --> $105 2008e --> $75 2009e --> $50 2010e --> $30 The newsies have been leaving people with the impression that CL'll hit $105 this year. I have not heard any media reports that said that the GS "year 2007 forecast" for crude is $105.
I saw an interview with Lee Raymond and he said oil was unsustainable at the present price of $50/bbl. Do you know who he is??? Anyone? Anyone? SteveD
This is a pretty realistic prediction given the 2007 timeline. Doesn't mean oil won't see $40 first. In this biz timing your entry is everything.
Yeah. GS also recommended to buy stocks in March 2001, when the first little dip occurred. 4 Years later we just got back to where we were. GS is BS.
Oh yeah... and here are some baseball scores... 7 to 2 5 to 6 1 to 0 Whatever GS does...it will be a legal means to an end..... They will dance away with some bucks ...in some fashion.... This guy would do well in Hollywood... lol
But in reality there are enourmous amounts of oil already discovered but not in production. For example, the heavy oil reserves in Canada and in the Orinico basin are many times larger than the reserves Saudi Arabia claims to have. Putting it into production is very capital intensive, production costs run about 15/bbl and refineries are needed to run it unless it undergoes further processing; but it is there and all it takes is money and time to get it into your SUVs tank. Do a google for syncrude to get started if you are looking for more info on it. Canadian Oil Sands (COS-UN.TO) and Suncor (SU) are two names in this biz. web links to them: http://www.suncor.com/default.aspx?ID=1 http://www.cos-trust.com/ And from the Canadian Oil Sands Discovery Centre: "Alberta's oil sands contain the biggest known reserve of oil in the world. An estimated 1.7 to 2.5 trillion barrels of oil are trapped in a complex mixture of sand, water and clay..." http://www.oilsandsdiscovery.com/ DS
The sarcastic point I was trying to make is: Who do you think knows more about the oil business? A Goldman analysis or the CEO of the largest actual USER of the oil?? SteveD