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Gumby
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Yeah, it is free enterprise!! Can we go way too far on this ? Is Earth dying before our own eyes ? Does quality of life really matter? Do we understand it or what? What is God all about ? Do smokers really have the right to blow smoke into our faces on streets? Should we put them back indoors so... More
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  • How Much Longer Will We Still Pay $4 For Gasoline? 0 comments
    Jun 18, 2013 2:16 PM | about stocks: XOM, CVX, COP, FSLR, SPWR, RGSE

    While it is still true that we are swimming in another oil glut but it is still nothing as compared to the Great Texan Depression of 1982 when oil prices fetched as low as $10 a barrel. I can call this a mini oil glut if I can get away with it.

    Here is the simple explanation... those recent discoveries in North Dakota , Pennsylvania and Canada are not EXACTLY as cheap as those being drilled in Texas or Oklahoma. As matterly of fact, those new discoveries are not really new! They were discovered decades ago ,but oil companies preferred to import far cheaper oil from the Middle East. Then we built up massive defense apparatus to protect the Middle East oil puddles from the Soviets.

    In 2007-08, America and the free world had hit the ceiling as the Middle East (OPEC) were maximized out on production despite rising oil prices that hit $150 in 2008 and continuing climbing. We finally were forced to pull out the plug and we had the worst recession if not another depression that just ended last year. We are no longer able to recover our economies as rapidly as in previous cycles simply because we finally own up to the fact that oil is no longer dominant enough to power our recovery as rapidly as previously.

    This is the reason why we are faced with no other alternatives than to move toward more expensive clean energy . The clean energy industry are moderately successful with cutting down the costs of providing clean energy. If I can show you a chart, you can easily and readily see how the costs of newly discovered and developed hydrocarbon based reserves are going up and the cost of advanced clean energy are coming down. The diverging point is rapidly closing in if not already. It is a matter of months or a year before it crosses.

    Oil prices are manipulatively suppressed artificially to make it look more competitive against clean energy and government subsidies. Global climate change already poses a big price differential regardlessly whether one believe the story or not. We can actually issue an IPO on Global Climate change only if we can figure out to make profits on it. We cannot because it is an intangible price that we are not required to pay directly but usually indirectly.

    Lies is worth dimes every dozens. Lies is still the cheapest commodity around! The next cheapest commodity goes to aluminum! Aluminum prices are all lies as well. So what are you standing there for? Hoping for ever cheap oil and aluminum and lies forever? Don't be foolish!

    Disclosure: I am long RSOL, AA.

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