galewhitaker

On Oil's Sesquicentennial, The Dream Becomes a Nightmare

It's not a moot point. We have waited too long to convert to alternative energy (thanks to the oil companies). Peak oil will insure shortages which will cause chaos, war, starvation and death. There are almost one billion cars and trucks in the world today. Think what will happen to our economy when there is not enough gasoline to keep everyone moving. Think hybrids are going to solve the problem? Study Jevon's paradox. Jevon's paradox will insure that as cars and trucks get more efficient the public will use even more gasoline which will cause even more shortages.

Crude Oil Is Above $70 as Traders Eye Mixed Economic Signs

All oil producers are lying about their proven reserves. The truth would cause stock prices to drop and influence to wane. Americans are constantly inundated by lies about the future supply of energy. Oil sands, oil shale, ethanol, hydrogen, algae, sun, wind, geothermal, cow manure and ocean waves are a few of the red herrings that are lulling folks into complacency. The truth is there is no alternative to light sweet crude and there never will be. All major oil fields are in decline and no major fields have been discovered since the 80s. Politicians cannot be elected if they talk about an impending energy crisis and the chaos the might ensue. We will continue to bury our heads in the sand until we drive into that service station and the sign on the pump says “Out of Gas”.

Is Oil's Recent Rise Merely a Head Fake?

Since the world currently uses 85 bb/day the fact that there are currently 44 bb stored in ships ( www.businessinsider.co... ) means nothing. 44bb is only enough for 12 hours at the current consumption rate.

All the world’s major oil fields are in decline and the oil industry is not going to be able to maintain the current production rate (85 mbpd) much longer. New demand by china and India (maybe a billion new Nano cars sucking up oil) are going to guarantee that demand outstrips production in the not too distant future. This will cause shortages, economic recession and political chaos. I know I am pissing in the wind but I can’t resist blogging about our real situation. Conservatives just cannot fathom the idea that god hasn’t provided enough oil in the bowels of the earth to last forever. Let’s wake up guys, even a child can see that if you keep sucking the oil out of the earth it will eventually disappear. www.hubbertpeak.com/

Crude Will Reach $100 by December 2009

Trying to predict the price of oil using a technical approach like this seems like the height of futility. All the world’s major oil fields are in decline and the oil industry is not going to be able to maintain the current production rate (85 mbpd) much longer. New oil demand by china and India (maybe a billion new Nano cars sucking up oil) are going to guarantee that demand outstrips production in the not too distant future. This will cause shortages, economic recession and political chaos. I know I am pissing in the wind but I can’t resist blogging about our real situation. Conservatives just cannot fathom the idea that god hasn’t provided enough oil in the bowels of the earth to last forever. Let’s wake up guys, even a child can see that if you keep sucking the oil out of the earth it will eventually disappear. www.hubbertpeak.com/

Here's Why We Need a Tax on Oil Imports

This is a great idea! For all you detractors it’s critical that we move away from oil altogether. All the world’s major oil fields are in decline and the oil industry is not going to be able to maintain the current production rate (85 mbpd) much longer. New oil demand by china and India are going to guarantee that demand outstrips production in the not too distant future. This will cause shortages, recession and political chaos. I know I am pissing in the wind but I can’t resist blogging about our real situation. Conservatives just cannot fathom the idea that god hasn’t provided enough oil in the bowels of the earth to last forever. Let’s wake up guys, even a child can see that if you keep sucking the oil out of the earth it will eventually disappear.

What Is Driving up the Price of Oil?

You folks are not living in the real world. The production rate of crude has peaked (all 333 major oil fields are in decline). Everyone with any brains knows that oil is a "declining resource" in the classic sense. This puts it in the same category as gold. Why in the world shouldn't investors buy oil when they know the price can only go up forever?

Don't Believe This Rally in Oil

Give me a break! Oil is a classic "declining resource" that all college kids learn about. Supply and demand don't matter. The state of the economy dosen't matter. When everyone in the world knows that oil can only get scarcer the price is going to go up and stay up.

Fundamentals Don't Support Oil at $55-60 a Barrel

Many folks realize that the production rate of oil is declining. It dosen't matter that inventories are high. As an investor I know that no one is making more oil and that eventually the price of oil is going to skyrocket. It's a classic declining resource situation (just like I was taught in college). There are tons and tons of gold stored in inventories all over the world but because it is a declining resource the price is increasing with time. Unless you believe that god is making more oil for us down in the underground I think you folks should tuck a little USO in your portfolio.

Thoughts on the Current Restructuring of Global Oil Demand

To Dirk Mc Coy and others who think that air or electric cars are going to save our bacon anytime soon: There are currently 250,000,000 gas guzzling cars on the roads in the US. It will take many years for cars powered by new technology to make a dent in their oil consumption. In the mean time a billion folks in Asia, Africa, and South America are going to be pouring gasoline down the throats of their new Tatas. The idea of everyone in the world motoring to work in their gas powered cars is so short sighted and so stupid it defies imagination.

The End (of the Recession) Is Near

This bad news is not surprising. The conservative idea that the economy and the population can grow forever is just as stupid as the idea that we can solve our energy problems with the “drill baby drill” mantra. If the economy starts to improve the demand (and the price) of oil is going to skyrocket again and cut it off at the knees. Has anyone read Jarad Diamond’s book titled “Collapse”. I think we are in the first stage of a deadly collapse.

This Recession Is a Reset to a New Normal

Steven didn't mention that world wide oil production is falling because retrieving oil from existing fields is becoming more difficult and more expensive. The price of oil is going to skyrocket whether or not demand increases. $100 oil will cut the economy off at the knees. I am going to buy truck load of puts and make sure my dogs are hungry and mean.

Analysts Don't Know Squat

It's obvious that Kramer knows nothing about the future of the market but you have to give her credit for trying to convince the sheep to jump in so she can sell stock and make some commissions.
Since oil production rates are declinning at 9%/year I suspect that if and when "demand destruction" subsides the price of oil will skyrocket. This will stop any new rallies in their tracks. I'm sure that Kramer will be watching for this event and will make more commissions by recommending that her clients sell short.

Alternative Energy Storage: It's All About Price vs. Performance

Energy storage devices are going to be extremely important in the future. Oil production in the Cantarell is diminishing at the rate of 9%/year.
Why isn't anyone talking about conservation. If we had a decent energy policy it would surly include a floor on the price of gasoline. This would stop the back sliding during periods of cheap oil and promote conservation.
For example, why do we have a long haul trucking industry? The cheapest way to transport stuff is on trains. We need leaders who will make sure that we don’t do stupid things like haul products on trucks that should be hauled on trains.

Buying USO Is a No-Brainer

Cantarell production is declining at an accelerating 9%/year. Demand destruction has taken it's toll on but supply destruction is going to trump all bets.

Last Thursday Was the Bottom - It's Time to Get Back in

TACITUS
What about energy? The reason that oil is down from $120 is "demand destruction" caused by the recession. As soon as the economy starts to recover the price of oil is going to skyrocket. This built in inflation will cut the market off at the knees. I'm glad that you and your friends are jumping in. As soon as this market starts to rally I'm going to short the daylights out it.