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      11-05-2012, 02:21 AM   #232
secretsquirrel
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Quote:
Originally Posted by Solonng View Post
Have you looked at the relationship between the value of the dollar and oil prices? There is an inverse correlation between the two and the dollar has been depreciating which contributed to the higher oil prices. Also, there is an abundant source of nat gas in the US that has yet to be exploited
Yes I have. However the largest reason for the rising production costs is increased global demand. The perfect evidence of this is that the dollar was in the tank during the bottom of the recession and oil prices were still low because everyone was scare shitless and demand was low.

I realize we have a shit ton (actual scientific measurement) of natural gas and shale also. But shale is "not a proper investment at the current oil prices". And its been said that it won't really become relevant until oil prices double. natural gas hasn't taken off and I'm not sure why it hasn't.

I got into a natural gas mutual fund about 10 years ago because I was sure that demand for it (and more importantly, prices) would increase. I was wrong. I imagine that it's so hard to coordinate the production of nat gas passenger vehicles, nat gas production and transportation. its gotta be a tough sale to get everyone to risk billions when they've got a sure thing going already. The argument that they should spot selling a product that sells for ~100/barrel and start selling something for ~7.00/barrel is a tough argument. And don't get on me about the prices listed above. They are guesstimates (too late for me to look up the prices).