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Sedans Luxury Lounge
21429 messages, Last post on Nov 29, 2009 at 4:46 PM
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I am no oil expert but based on what I read the average marginal cost of worldwide oil production is about $55 to $65. In the short term oil prices can fluctuate above or below $55 to $65 but not in the long term since marginal costs will creep higher and higher as "cheap to drill oil reserves" dry out. It is very fortunate that the Saudis are good friends of ours since they have the cheapest oil. Without them world oil prices would be far higher and we would be more dependent on thugs like Putin, Chavez and that charming fellow from Iran. So enjoy these low oil prices as long as they last because they wont last too long unless demand drops substantially due to a horrific prolonged global depression. So let's all pray for higher oil prices and continued prosperity in Saudi Arabia. 
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Replying to: lexusguy (Jan 02, 2009 8:43 pm) That is just sooo 20th century! The greener , the more reliable, the more practical , the more luxurious and last but not least the more technologically sophisticated Lexus HS250 sounds far more 21st century to me. I will take the Lexus HS250 anyday over these two Germanic relics of the past. Sushi is in. Sauerkraut is out.
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Replying to: dewey (Jan 02, 2009 9:52 pm) Sushi is in. Sauerkraut is out. Happy New Year! I guess you don't like to really drive, then! The trick will be to preserve the driving performance and achieve high efficiency at the same time which tends to be mutually exclusive at the level of existing technology. It must be created. Today, the sauuerkrauts of the world have the best driving dynamics IMHO. The efficiency of a BMW I6 would be greatly improved if the weight was reduced. The Holy Grail of a compact car should never exceed 3,000 lbs (1,361 KGS.). For a car in the 128i/135i class, it should weigh no ore than 2,500 lbs (1,1134KGS.). A bullet-proof HO 4-banger needs to be the new world standard. The balance of today's performance cars will be to achieve 20 - 30 MPG and keep close to 300/300 in the power category. Over 300 HP will be hard to achieve the stated efficiency without advanced hybrid technology to support the IC power. Regards, OW |
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Replying to: circlew (Jan 03, 2009 7:50 am) Everytime I feel happy in my car I can almost predict I will soon get a ticket. In the short term oil prices can fluctuate above or below $55 to $65 but not in the long term since marginal costs will creep higher and higher as "cheap to drill oil reserves" dry out. Pardon my illiterate writings on my last post. What I really meant was the following: In the short term oil prices can fluctuate above or below $55 to $65 but not in the long term since during long periods prices tend not to deviate too far from marginal costs. Despite that fact it is inevatable that marginal costs will creep higher as "cheap to drill oil reserves" dry out.
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Replying to: dewey (Jan 03, 2009 8:44 am) From everything I've read for the Saudi's and most of the Middle East the marginal price is about $5 as their capacity easily outweighs what they are pumping. For America it's about $45 because we are tapped out and we need a $55-65 price to make drilling worthwhile.
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Replying to: ljflx (Jan 03, 2009 8:57 am) The $55 tp 65 dollar figure is the average world marginal cost of oil as of June 30th 2008 from the magazine called the Economist. Fortunately the highest marginal cost producers are Venezuala, Iran and to a lesser degree Russia. Oh and let me not forget Canada's high cost Tar Sands. USA petroleum is not the costliest to drill but unfortunately there is not enough of it. |
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Replying to: louiswei (Jan 02, 2009 11:20 am) I hear you. I'm somewhat disappointed by their pricing strategy as well. Regardless of MSRP the 2008 model A4 cost only $1200 less than comparable 3series AWD in this area. The bloated price will make it worse imo. Of course, given Audi's superior popularity over BMW in this area it may not bother them much in the end... As optimistic as I am on Audi's future, I'm expecting them to become a strong player globally, like Asia (except China and Korea) where MB normally rules (and overpricing like hell) or Europe where higher price (over BMW) never really bother them that much, not in US. I actually paid my lowest premium price yet today - $1.63. Good for you, ljflx. Premium in my area never dropped to less than $1.69/gal (2 weeks ago). Now? A solid $1.75 like back in the early 2000s... 
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Replying to: ljflx (Jan 03, 2009 8:57 am)  And the price spikes reflect recent demand trends globally.  Damn those SUV's and Economic prosperity in the regions of the world! Regards, OW |
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Replying to: m4d_cow (Jan 03, 2009 9:13 am) In China I believe that Audi has the #1 share position in it's class. If you go there you willl see A6L's outnumbering 525iL's pretty handily. As far as big cars it seems as if the A8, 7, and S are about the same (from observations only). |
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Replying to: dewey (Jan 02, 2009 9:52 pm) HS250 to me sounds like maybe a 2.0L Atkinson cycle 4 and an electric motor, with a combined 220hp or so. Because it has to be a luxury car to wear the Lexus badge and luxury means weight, we're probably talking mpg in the low 30s - good, not great. If the cops have completely drilled the enjoyment of driving out of you, just buy a cheap old ES300 from '03 or so. They were extremely reliable, and too slow to get into any real trouble. The price will more than make up for any fuel savings that the HS250 would deliver. |
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