smurphny

Was 'Peak Oil' a Multi-Billion Dollar Hoax?

"Peak Oil" has much in common with the hypothesis of "Global Warming." It is wonderful that scientists try to connect the dots of evidence for these things but they have very often been very wrong throughout the ages. Data can be misinterpreted or biased very easily. The problem is that many erroneous decisions have been made because politicians and the media believe the theories of academics in universities instead of talking to people in industry.

How Does the Financial Crisis Affect the Peak Oil Thesis?

Concerning the CANROYs, I have been a long term holder and have averaged down during the debacle of late, believing that fear and forced selling was creating some great bargains. No matter what the economy does, cars will run, lights will be on, houses and schools will need heat. Even if oil has a protracted collapse to $50 and we get a cut in dividend, which is a more complicated equation than I can figure, the distributions should still provide a margin of safety. If they stay at the present crazy 30+%, it will not take long to own these shares, going into 2011, essentially for free. Oil is being depleted, costs of extraction are increasing, demand is increasing around the globe. There may be short term downdrafts in crude prices but long term, the price of oil has nowhere to go but up and owning some of it in the ground is probably a good idea. Also, the US dollar is on the hook for a lot and will likely decline against other currencies. Oil will give some protection from the resultant inflation.