kildonan

Solution to the Global Petroleum Crisis

Let see let's regulate the oil price at $40 - $80/bbl...
we'll take 1.5MMbopd off the market from the Canadian oil sands, and halt construction of another 2.0MMbopd of future oil sands production (2012 - 2014). I guess the offshore Brazil stuff is no longer economical, and we might as well forget about ANWR ever being explored/developed. And I guess the US government will subsidize the oil price to US consumers to the tune of $100 - $150/bbl for the next 10-years. Just guess the value of the USD then!

Stay Long the Commodity Inflation Trade

Is commodity inflation the correct term?

www.theglobeandmail.co...

"Everybody calls prices going up 'inflation,' but a lot of the prices going up are not inflation but are supply and demand signals," said Martin Murenbeeld, chief economist at Dundee Wealth Management Ltd. "The U.S. Federal Reserve Board has essentially zero control over food and energy prices," he said. "They can just jawbone and hope food and energy doesn't work itself through the labour force wage structure."

1,238 Billion Barrels of Oil Reserves: Is This an Oil Price Bubble?

Sorry Mr. Hayward, but those reserves don't belong to BP, ExxonMobil, Shell et al. They belong to those sovereign countries who may decide to enjoy the higher oil price rather than share it with you.

The major oil execs have been downplaying the rise in energy prices... why? Obviously they are no better than many others in predicting where oil prices are going, but perhaps it is in order to reduce sovereign countries' desire to control such valuable assets.

The USA in particular will (must) learn to use these assets (much of which is imported) more wisely in order to survive in the long run. Higher energy prices are here to stay and ANWR (if it ever is explored) is not the panacea that many believe. The cost to discover, produce, and transport at the same time as protect the environment, will be quite high. At the consumption rates of the USA, any proven reserves there would not last long in any case.

As others have stated, recoverable reserves - and the cost to recover those reserves is a critical issue that the author does not really consider. The sooner that investors in the western world really understand that although an integral part of the world economy, there are now many other major economies that will place huge demands on the world's reserves of all non-renewables.

This time it really is different. Commodities (Oil; Gas; Base Metals; Gold) - A once in a lifetime investment opportunity.