Get Used to High Oil Prices
No one is going to come to the rescue on the supply side -- and, of course, we remain stuck with an administration that doesn't believe in demand-reduction strategies.
As the Wall Street Journal (subs. req'd) reported in "OPEC's Lever Loses Its Pull on Oil":
This figure shows how little spare capacity OPEC has -- essentially none outside of Saudi Arabia, and the Saudis have no inclination to initiate a major price drop, especially since these prices do not appear to be destroying demand.Oil prices are hovering near historic highs, but consuming nations shouldn't expect quick relief from OPEC, the world's only source for big, quick supplies.
For several reasons, the Organization of Petroleum Exporting Countries has neither the clear leverage nor the inclination to open the spigots and drive down the price of crude, which jumped past $90 a barrel in intraday trading in New York last week for the first time.
Moreover, the International Energy Agency (IEA) warned back in July that it saw "OPEC spare capacity declining to minimal levels by 2012."
And the WSJ notes no one outside of OPEC will be coming to the rescue either:
We cannot be far from $100+ oil.Saudi Arabia has little to fear from the world's other major producers, such as Russia, which in decades past have ramped up supplies in an effort to capture a greater market share. But at the moment, the world's major producers for the most part are already pumping flat-out.
"They have little competition from non-OPEC suppliers and few worries about losing market share," says Jeffrey Currie, senior energy economist at Goldman Sachs in London.
Crossposted from climateprogress.org
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The energy issue is up to the Little People,
because the Big Boys aren't about to give up
a penny of the profits they're making. But,
science to the rescue, there's other things
that'll burn besides gasoline, and cleaner,
too, and best of all, they don't have to be
imported. You got your electric, you got
your biodiesel, you got your ethanol, you got
your natural gas, you got your hydrogen,
but the 'competition' for all of that has
tens of billions invested, spends millions
on focus groups to study consumption habits,
and now, thanks to datamining, has a good
idea of when you'll be pulling up to the pump
next. 3 bucks a gallon, hey, they can charge 5,
and you'll pay it, because they OWN all that.
May as well own the roads, too, and if this
administration has their way about it, that
just might end up happening...
I hate to think of Oil prices as the reason for a revolution, but the mass of people are driven by price pressure for essential commodities. The American revolt against Britain was sparked by a tax which raised prices. The French revolution too had pricing type pressures inherent. The Nigerians today are ungovernable because they can't afford oil so they steal it from pipelines.
By not addressing this problem, our government is playing with fire.
But then, that's what they have done ever since Bush took power, eh?
Collinbrandt, you are totally correct.I have already started planting my garden.The future is scary !
High priced energy will block the path to the American dream to the newly poor who won't be able to pay for energy one needs to supply an apartment or house. The newly poor will be relegated to the urban or rural slums. They won't be able to afford the fuel for a private vehicle in the unlikely event they had the money to buy a mechanic's special or a junker. That will keep them out of the sight of the much reduced number of the so called affluent who have again avoided abject poverty by blind fate. The super-rich & talented or provident can also slip into the underclass at fate's whim.
Between the falling value of the dollar and the growing demand for oil in the East, the best thing to do is buy some equities in the Far East or purchase up on commodities like coffee, tea, rice and,flour etc. Also, put in a garden next year. Good luck my friends. I am going to plow up some extra land to raise potatos for the familis in my area that need food. We must all pull together against the tyranical will of the rulers.
THE COLLINBRANDT
Think "Peak Oil"
The supply of oil is running out. The ability to fully replace diminishing supply is nonexistent. Depletion will out run new supply from here on out.
The Oil Drum on "Peak Oil"
http://www.theoildrum.com/node/2693#more
Today in the Nation on line : "Beyond the Age of Petroleum" by Michael T. Klare
http://www.thenation.com/doc/20071112/klare
Cheap energy is over. We are faced with an ever declining supply of oil at the same time as demand is going through the roof. Food and fuel will place ever increasing demands on consumer spending starving all other areas of the economy of demand. Layofffs will follow this demand destruction undermining the financial system in a relentless trend downward.
This damage can be miitigated with political action on fuel economy and plug in vehicles , but the trend will never reverse. There may be pauses due to recessions or depressions but that will just postpone the slide of oil availablity.
Americans are stupid. You'd think these lard-butts in their SUV's would figure out that wasting petroleum products is not in the best interest of their country. What's even dumber is that they send their armies to the Middle East to protect oil supplies while refusing to drill in Alaska or the Gulf.
Not sure whether it's stupidity exactly. There are a limited number of choices in the American auto market. Setting aside fuel consumption, an SUV is an eminently practical family vehicle offering a great deal of versatility. When confronted with a choice between a gas-guzzling sedan and a gas-guzzling but more practical SUV, I can understand why most would choose the SUV.
The villain in the piece are things not under the control of individuals, such as CAFE standards and federal supports and/or mandates for fuel efficiency and research into alternative energy sources. Now that's stupid.
Not all Americans are stupid. Unfortunately, all too many of us are. So we will have to learn to live with more expensive oil. We will also have to learn to live with the consequences of mixing religion and politics. Fortunately, we get another chance to change things in the 2008 elections. You should pray that we make the right choices.
Sorry Horst - drilling in the
Arctic is a really really really dumb idea. Also - calling Americans stupid is simply stupid. Sending an army to Iraq to make sure oil is in the control of Americans wasn't smart but then which country has cut back on the emission of fossil fuels collectively to endure the planet's safety.
Drilling in the Gulf is not a good idea either. So Horst - you walk like I do and then get everyone else to walk. Back then the American life style of generous lots, big houses and lots of cars was the envy of the world. However, the world is still wanting to live like the Americans. Unfortunately for the world this life style is not tenablebut it is still copied by those around the world who can afford it. Just check out Hong Kong. More Rolls Royces per capita than anywhere in the world. As if they need those gas guzzlers.
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