Will The Price of Oil Per Barrel Drop to $20?

In a sharp reversal from earlier this year, when traders were looking at $147 barrels of oil and pundits claimed it would never go below $100 ever again, the price of crude oil continues to make new lows. Oil hovers around $43.71 per barrel and looks like it could go even lower.

The United States Oil Fund ETF (NYSE: USO) is also hovering near all-time lows. It’s currently at $34.96, barely above its 52-week low of $33.08 and well below its high of $119.17 set in July.

The price for a barrel of crude has remained relatively stable over the last 25 years, except of the past four years, which have seen prices skyrocketing. It explains why oil giants like Exxon Mobil (NYSE: XOM) and BP (NYSE: BP) have recorded massive profits lately.

Prices would need

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November saw the sales of cars manufactured in North America drop to 236,000 units. That's 17% below October (which was already horrible) and 40% below the number sold in November of 2007.brimg alt= style=width: 480px; src=http://local.content.compendiumblog.com/uploads/user/7e88b461-578b-47f3-88ec-038e212ad053/aa0ff38d-9bb9-44a5-bba5-8be30d8f6977/dom_cars_dec_08.gifbrSource: a style=font-family: verdana; href=http://www.econbrowser.com/archives/2008/12/the_auto_downtu.htmlEconbrowser/a.brbrMeanwhile, a style=font-family: verdana; class=summheadline href=http://www.bloomberg.com/apps/news?pid=20601103sid=aDvTwqi_v3J8amp;refer=newsGM and Chrysler are seeking $11 billion to avert collapse this year. /aIn short, they are simply running out of cash. Democrats pledged to keep them out of bankruptcy without saying how. brbrAnd a style=font-family: verdana; href=http://www.marketwatch.com/news/story/automakers-post-steep-sales-declines/story.aspx?guid=681021CC-8778-40C2-AC80-822D0321CB9Eamp;dist=SecEditorsPicksMarketwatch tells us/a that Ford, Lincoln and Mercury combined car sales fell 31.5%, GM took an even harder hit with its 41.3% drop, Volvo sales tumbled 46.5% (ouch!) and Hummer sales dropped the most, downa stunning 63.9%.brbrToyota, Nissan and Honda had less-bad news, but each saw sales drop by more than 31%.brbrCars are piling up on the lots. If you think they're cheap now, just wait until the after-Christmas sales. But we may be approaching the point where ...

As its name suggests, Far East Energy’s attentions are focused in China where the company hunts down precious reserves of coalbed methane. This form of natural gas is one exceptional alternative to conventional fuels, and as worldwide oil stores rapidly diminish, even the oil giants themselves are seeking to acquire exploration rights for methane.

Yesterday the company announced the completion of its first horizontal well, in the coal beds of Shanxi Province, China. The well was cut nearly three kilometers into the coal seam, with a short-reach and a deviated also being completed. According to initial findings, the well area - known as the Qinnan Block - contains relatively high levels of gas reaching 600ft³ per ton of coal.

CEO Michael McElwrath spoke of the achievement: “Our first horizontal well in the Qinnan Block confirms that horizontal wells can be drilled at a low cost in the area. We engaged

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...oil was the objective. Maybe. From ABC: Five years after the US-led coalition stormed into Iraq there is set to be another western invasion. This time it is the world's biggest oil companies leading the charge, 36 years after Saddam Hussein kicked them out. The oil giants are seeking access to Iraq's rich crude reserves, Australian companies BHP Billiton and Woodside are among them. The Iraqi government wants to make up for the lost opportunities under Hussein's rule and has the ambitious goal of doubling Iraqi oil production to more than 4 million barrels a day within five years. Peter Zeihan, an energy analyst at geopolitical intelligence group Stratfor, says there is plenty of incentive for the big oil companies. "They have the largest, easiest reservoirs to tap, they're very close to existing export points, there's infrastructure in place for over double the amount of oil that currently is being produced in Iraq," Mr Zeihan said. "When ...