After the economic collapse is over (which might be sooner than you think), get ready for game-on again.
These days of cheap oil are just a brief respite.
Don't be fooled.
That's what happens to us every time.
February 7, 2009
Don't get used to cheap gas (again).
After the economic collapse is over (which might be sooner than you think), get ready for game-on again.
These days of cheap oil are just a brief respite.
Don't be fooled.
That's what happens to us every time.
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Gas keeps going up around here.Was 1.50 now 2.25.Bend over and meet allah.I have cut useage way back.
You are as right about this one as you were 4 years ago about housing Keith.
Peak oil is real, pop growth has gone exponential. Oil's going back to $100 then $200 then $300 . . .
Buy:
USO
DBO
DXO
Thanks for your insights Keith - you've saved/made me a fortune over the past three years!
Love ya!
Google LATOC!!
This will make any recovery we get a short lived fragile one. After our "fragile recovery" gets underway, expensive oil imports and the need to fight inflation will suck what little life there is out of the economy and put us in a worse situation. But what the hell, let's spend and have a good time now.
Our political leaders may even put off America's Bastille Day a few more years.
America won't need gas to power it's cars. Given the condition of the roads and streets, we all should be buying horses so that we can get still get around town.
But at least the wealthy elites will get their freaking tax cuts.
When gas inevitably skyrockets again,oh, say aroud this summer or when Allah has spoken or Biden makes a three-stooges style joke of US diplomacy, that will be the final death of Chrysler (the Countrywide of cars)and the Last Act of once mighty GM (the A.I.D.S. patient of cars)leaving only the Big Blue Oval, Ford to joust with the rest. Every auto CEO of the last 50 years should by publicly hung or shot along with the union leaders of the same period.
Buy American? Fuck America. America IS stupid, corrupt, lazy and DEAD.
DIE AMERICA, you POS, DIE.
did you miss it keith?
VOLKNER IN THE HOUSE!
$5/gallon gasoline will be great, $10 gallon will be even better. Everyone entitled to cheap gasoline will get to see how valuable and limited it is as a resource.
Unfortunately who know if we will ever see that day. Our economy is largely run and its wealth gained from cheap gasoline. If we have less gasoline we might be poorer and therefore less able to afford gasoline, and thus driving prices lower. Less gasoline could in fact keep prices lower.
The solution to this, as I've said before, is to raise the gas tax. This will make up for some of the many externalities of the automobile. A gas tax will provide for such wonders as mass transit, and wind turbines for an economy that cannot afford gasoline. We should start with a $3/gallon gas tax to keep gasoline prices high.
Hey, I thought that 'BIG OIL' controlled the supply and price of crude oil. Hell, that's all we ever hear from democrats/liberals/enviornuts, Al Gore, etc. I guess when we all have solar and wind (except in Ted Kennedy's neighborhood), we will have plenty of energy for our little golf-cart electric cars. This country need more domestic drilling, nuclear power and 'clean' coal power plants, not a bunch of 'green' BS that will ultimately cost more than oil.
So true.
The hyper-inflationary depression
is now in it's beginning stages.
All the necessities - water, food, gas, utilities - will be steadily getting more and more expensive.
Sure, some people will profit, but at what expense to the nation as a whole?
It's no fun going out for a night on the town when the establishments are nearly empty, or full with other petty people who still feel safe talking about their stuff.
Why don't you give us a world consumption chart? And then we can argue.
Dny
More bogus charts brought to you courtesy of OPEC.
And the idiots storing huge amounts of oil in tankers (AKA last years smart investment bankers)
Looks a lot like the NAR charts in 2005.
Why are ‘ALL’ the auto manufacturers doing so badly if Chinese and Indians are now buying millions of cars?
Answer = they are not.
Oil will never go up again due to all the alternative energy movements that are sprouting all across the world.
It may appear to go up when fiat currency weaken.
The ‘high demand low inventory of fossil fuel’ makes as much sense as the massive housing shortage in circa 2003 thru 2006.
Nuff said
next stop $10 a barrel 100%
The link shows a graph where we have 60 million bbls/day by 2020 instead of the 80 million today. People are going to be forced to use less whether they want to or not.
Resource constraint has been a major contributor to the global economic malaise. A fractional banking system based on debt and consumption is no longer feasible when slower economic growth is no longer able to pay off the interest on borrowed money. Game over and sorry, the structural problems in the US economy will take 30 years to repair-about the same amount of time it took to get us where we presently find ourselves.
The recession will last a long time, so gas will be cheap for a few years.
Please Keith... we can use some good news now...
I have a huge CC debt and have lost all my savings in the stock market...
Trade & Commerce has to restart now... We need one more bubble now... else everything will be lost...
We all need good news... Please!
You finally believe in peak oil, huh? Better late than never.
This stimulus bill is the last chance we have to gain energy indepedence. It looks like we are trying to get there by building bridges to nowhere and more highways. I doubt this will end well. It will make the current crisis look like a picnic. You think congress will be able to inject 700 billion gallons of gas when the well runs dry?
Soon (like 2 years or so) the decline in production will catch up with the decline in consumtion. Without proper investment & maintainace oil fields decline on average about 6-10% a year. Given the current price there's little incentive to invest in deep water and alternative source. Many of them cost well north of the current price to produce.
(which might be sooner than you think) - Thanks for the little injection of hope. Although by ending it prematurely, we might be ensuring that it will come back even nastier and dirtier in a few years.
I plan on moving closer to work and I've already cut way down on driving. If gas doubles in price from where it is now, it would probably cost me another $100/month, but that doesn't include what it could do to the price of food. I can handle an extra $100 coming out of my paycheck, but I refuse to believe that $40-$50/barrel of oil is TOO CHEAP. There was never the kind of demand to support the prices of last summer and it's been going down drastically ever since.
Buh buh buh I thought that your heroes in charge now were going to turn everything green in America. Don't you remember all the promises during the campaign, pink unicorns, "yes we can" mantra, Al Gore's fuzzy polar bears. What happened? Are you giving up on your heroes now?
Gas here went from $1.80 to $2.10 in a matter of 2 months. Where's my pink unicorn and rainbow, Messiah?
.
PEAK OIL ISN'T REAL. IT'S A SCAM TO KEEP PRICES UP. WAKE UP, SHEEPLE.
.
Folks, see if you can get this list embedded into your shrunk-heads. These are Ponzi schemes to transfer taxpayer money into the global elite pockets:
1. Peak Oil
2. Global Warming
3. Bogeymen (range from communists to terrorists)
4. Anything related to: "We are doing for the children"
5. Madoff (frontman for bigger gang)
6. Two party system (in reality there's only one shadow government)
7. US Dept of Commerce
8. H-1B Visas
9. FED
10. Stimulus & Bailouts
Glad to help.
Funny how all the idiots who got slaughtered with their oil ETF positions are in desperation for a quick come back.
Sorry bu it won't happen soon. This oil run and crash was deliberate, part of a bigger plan to destroy some undesirables and pass agenda.
Unfortunately, most of you are too dumb to understand. So let me ask you a question, who would benefit from this Peak Oil rumor? Who? Oil companies. Do you think that they wouldn't take advantage of these rumors to jack prices up? Do you think they don't have enough cash to control media and spread disinformation agents? Do you trust OPEC or any major oil company?
I rest my case.
PS: Ask your Messiah to check under Alaska and Montana, if he has the balls.
"next stop $10 a barrel 100% said...
More bogus charts brought to you courtesy of OPEC.
And the idiots storing huge amounts of oil in tankers (AKA last years smart investment bankers)"
Wow, Americans really ARE stupid.
Is the poster above atually walking around free or posting from a mental facility?
IDIOT
Allah, allah, allah...
Oil & natural gas prices will crash.
Oilfield services will crash.
The stock market will crash.
The dollar will crash.
The United States of America is bankrupt and unofficially undergoing Chapter 11 reorganization.
Bartering and black market trading will become the new economy.
Book it.
Isn't the value of the Euro and UK Pound a joke or what? Good luck Europeans:
More toxic debt soon could come crashing through the global financial system. The surprising source: Europe Inc. Once-stodgy Old World companies, from cement makers to phone operators to chemical companies, went on an unprecedented borrowing spree over the past decade that has left them up to their necks in debt. Corporate debt in the euro zone stands at more than $11 trillion, equaling some 95% of the region's economy, vs. only 50% in the U.S.
Hundreds of billions in payments are coming due just as sales are slumping in the global economic crisis. In better times, companies might have gone to the bank to refinance. No more. Bank lending to euro zone companies plunged 40% last fall as the credit squeeze tightened.
That helps explain why Europeans in January issued $159 billion in bonds, the highest level in two years. But the price is steep. Average yields on investment-grade European corporate bonds have almost tripled during the past year, even for relatively healthy companies such as Nokia. The amount of debt to roll over is huge.
Many businesses are struggling already. Moody's Investor Services (MCO) says 249 Western European companies were hit with credit-rating downgrades in 2008, the highest number since 1990.
http://tinyurl.com/ah9sum
"After the economic collapse is over (which might be sooner than you think"
What? Huh? We're all better now?!?
Dammit, every time I go take a pee, I miss the good part.
Seriously... what did I miss that makes us all feel better now?
Ohhhh, OOOOOkayyyy...I get it -- we're all stimulated!
Is that it(?)
I cant imagine China returning to "full steam ahead production" after this economic implosion.
Even the fear of losing ones job will reduce spending to what only is necessary.
We have maxed-out over consumption.
I disagree. China is a bubble just like Japan was. They are not consumers, only producers. China's oil demand was triggered by the Olympic preparation the past 4 years and factories supporting the US consumer. Both are gone. China's oil consumption will drop like a rock.
Also Obama will make progress with conservation and alternative energy.
Oil will never reach the phony highs of last year again.
So I guess Obama will keep his campaign promise to artificially drive up gas prices in order to force Americans go to "green."
This is the same guy who is pushing his massive "stimulus" package that includes such niceties as $80 million to Milwaukee public school construction, when Milwaukee has an excess of schools, 15 of which are sitting empty, and no plans at all to build more.
Man, are you people stupid.
Huh?
Economic collapse "over"???
I must have been napping.
I'm still awaiting the failed Option Arms and Alt-A's and that's not even really till next year.
I don't care what a tank of gas costs; I just want housing to tank.
Oh another thing Keith,
How does future demand look???
Is China buying as much gas as before? Is the US buying as much gas as before? Heck, is the world buying as much gas as before?
If you believe that gas should have never hit 147 (in the first place), and that worldwide demand has not really been that MUCH greater in the last 10 years, than I think a second grader can sum up that a barril of gas should not be over 40 bucks.
Dny
Anonymous said...
Oil & natural gas prices will crash.
Oilfield services will crash.
The stock market will crash.
The dollar will crash.
The United States of America is bankrupt and unofficially undergoing Chapter 11 reorganization.
Bartering and black market trading will become the new economy.
Book it.
February 7, 2009 10:37 PM"
Correct. Nice post. Thanks.
Oh yes and add:
Massive civil unrest and riots and looting in most major cities while pitiful domestic troops outnumbered and helpless to regain control. Local authorities helpless as cities bankrupted by Police and Fire unions have no money to continue adequate Police and Fire Protection. Citizens advised to "fend for themselves"...
Small Arms Ammunition sales halted to general public indefinitely.
BOHICA!
Anonopussy said:
"next stop $10 a barrel 100% said...
More bogus charts brought to you courtesy of OPEC.
And the idiots storing huge amounts of oil in tankers (AKA last years smart investment bankers)"
’Wow, Americans really ARE stupid.’
Nope; we’ve caught up to your game.
Why don’t ya educate us on the fundamentals of why demand for oil can possibly go up during a major contraction in the economy, a ‘greater conscious’ shift to alternative energy and an evolutionary change to energy independence?
Hence my conclusion that it is YOU the ‘desert rat’ that’s the stupid one here.
The pendulum has begun its swing in the other direction.
Anon said:
"next stop $10 a barrel 100% said...
More bogus charts brought to you courtesy of OPEC.
And the idiots storing huge amounts of oil in tankers (AKA last years smart investment bankers)"
’Wow, Americans really ARE stupid.’
I know, I know… you’re the guy that is going to be crying ‘where was the goberment oversight to protect me from my losses’
After your stash of oil floating in the high seas turns to vinegar.
Have ya looked at the mall parking lot lately?
From tiny cars to Prius’s everywhere; I would argue that ‘demand is decreasing’ in a BIG way.
Have ya read the posts on here? Most people are either driving less or planning major changes in their lives to reduce gory fossil fuel consumption.
Most people are willing to pay a little more in the short term (until alternative energies become abundant and cheap ‘around the corner’) to avoid the pain associated when filing the tank.
The irreversible trend is obvious.
Does peak orgasm count?
.
I'm long on whores, blow, and Jack Daniels.
.
Here's my prediction.
Saudi Arabia will close us out of the oil market and sell its oil to China instead. China's building lots and lots of oil refineries.
What do you think our future will be with China getting all the oil and supplying the world with cheap labor/manufacturing? All China has to do is stop buying our debt and it's GAME OVER with no reset button.
Instead of building things like light rail, we're going to buy the Federal workers a new fleet of cars. Really, really stupid. Forget depression...it will be the Dark Ages (literally) in the good ole USA.
ANALYSIS-China set for 400,000-bpd oil refinery output rise
Following a one-year delay to the 100,000-bpd Dushanzi plant in the remote northwest due to severe weather and equipment delays, Sinopec's 200,000-bpd Qingdao plant in eastern Shandong province should be the first new plant of the year in March.
CNOOC's first oil refinery, the 240,000-bpd Huizhou plant in the booming southeastern province of Guangdong, is keeping to its target to start in October.
And Sinopec's 160,000-bpd Fujian plant in the southeast coast -- the joint ExxonMobil/Saudi venture more than 12 years in the making -- may start operations in the fourth quarter, sources have said.
http://uk.reuters.com/article/oilRpt/idUKPEK22917220080109?pageNumber=3&virtualBrandChannel=0
As always, a fascinating line of comments.
Was $147/bbl justified? Nope -- looks like the speculators really were behind the run up to me.
Is $2/gal justified now? Nope -- the oil costs $1/gal, add in ~$.37 for taxes, $.15 for refining, and $.07 for transport and I get something in the $1.60 range as fair.
Will demand continue to grow? Yep -- just like the population is growing. Also, the hummers are back on the road now that gas is cheap.
Is oil an unlimited resource? Nope -- (unless you failed science).
The case for a peak in world oil production looks stronger to me than the case for global warming (which itself looks iron clad). The only question is whether enough changes can be made, such as electric cars and usable rail, to cushion the blow.
In a way it will be sad, because I still enjoy simply going for a drive; I see it as some of the cheapest entertainment money can buy. Hop in the car and go 100 miles or so to someplace you never spent any time, look around and perhaps grab some lunch, enjoy the "newness" and soak up a little local flavor, and cruise on back home. I just enjoyed my entire day, saw some things, learned some things, ate some things, and met some people for less than $40 -- roughly the cost of 2 movie tickets with popcorn & drinks.
A sad thing to give up.
I disagree. Oil demand is down, and will stay down for some time to come due to the global depression.
You will hit temporary drops as the gross consumption (SUV/Hummer) is removed, but all over the world everyone wants to cook, and where possible drive.
I do find the charts of miles driven interesting since something (the depression or high prices or both) is causing Americans to drive less.
But don't forget that unless you advocate a massive power-down or global depression (both genuine possibilities, but I hang them a lower probability than business as usual), the population keeps marching upward and the marginal number of auto-miles to be cut is quite limited.
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