Bob’s argument for a tight range of crude certainly makes sense. On one hand, economic activity keeps the price of crude elevated, with US production at 10m barrels per day. On the other, alternative energy has improved, placing a ceiling on the damned thing. Alas, we’re stuck in the range of $60-70 crude for the foreseeable future.
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Joined Nov 10, 2007
23,417 Blog Posts
The alternatives market has a couple of issues in the US: Alternatives are very far from competitive without subsidies and the administration us unfriendly to subsidies …as well as to cost-reducing competition from imported alternatives.
$60-70 is a good range. Marginal players will continue to struggle while the best in class will be making money.