http://europe.theoildrum.com/node/4115#more

 

Countdown to $200 oil meets Anglo Disease

Posted by Jerome a Paris on June 8, 2008 - 10:30am in The Oil Drum: Europe

Topic: Economics/Finance

 

One of the more interesting things about this Friday's economic news was the very obvious connection between the unemployment number and oil prices. What links the two is debt, the defining feature of what I have called the Anglo Disease, ie the highly unequal economy whereby the rich and the financial sector (almost the same thing these days) capture most of the income but hide it by providing cheap debt to the middle classes so that they can continue to spend.

 

Oil has played a fascinating side role in my Anglo Disease series, allowing the debt bubble to go on for much longer than expected. But now, instead, it is accelerating the crash. Let me take you through the whole cycle.

This was posted at www.theoildrum.com. I've seen variations of this chart before, but not presented in increments of decades. Of course, you cannot produce more oil than you've discovered....

 

http://www.theoildrum.com/files/Oil%20discoveries.png

 

These two thoughtful comments were posted after a presentation of the above graphic....

 

And the fact that many datapoints suggest that NEW oil is very expensive (lower EROI). TOTAL Ceo de Margerie said last week that to replace reserves now will cost a minimum of $80 per barrel. This is all hidden from most market participants as the oil they sell is a combination of new expensive-to-find oil and old $1-$5 oil - e.g. the fixed and marginal EROI is being smushed together to be sold at $130. Once the high EROI supergiants are largely depleted, we will be selling (and buying) predominantly lower EROI (higher cost) oil. Furthermore, this cheap 'older' oil that is still being pumped essentially for very low marginal costs per barrel, is subsidizing the finding and production of the rest. How much cheap oil is left is the $64,000 question? As it depletes, the prices and reactions will not be linear. Positive feedback loops abound...

 

    "And more alternatives will become more prevalent,..."

 

    To get straight to the point, I think this is where the utopians get it wrong. Without oil, followed by natural gas and coal, alternatives will become LESS affordable, not more affordable. 

 

   

 

    "This thread never really represented both sides of the peak oil argument."

 

    I have to ask. What are the two sides of the argument?

 

       

That, although more than 60 nations have peaked in their production of oil, the rest will never peak, and in fact the world will never peak! ;)

There are also those that contend that peak oil does exist, b/c oil is after all a finite resource, but resides much further down the road and that the higher gas prices we're experiencing today will lead to more discoveries/production coming online in the near term.

That is probably the biggest, most rational debate right now.

My fear is that, as the Saudis/Russians are demonstrating, a growing number of countries realize their oil is more valuable left in the ground to be extracted at some later date.

True. But also.... As we pay them for their oil at these higher prices, it's boosting their economies. So more of the oil they are producing is being used for their own purposes and making less available for export. That's another reason why they're keeping more of their oil in the ground -- for their grandchildren.

 

Both aspects are part of what we'll soon hear more about (maybe even by the end of the year), and that's the "net export crisis." Some call it Practical Peak Oil.....

http://www.reuters.com/article/ousiv/idUSN1053790020080610?rpc=401&=undefined&sp=true

 

Global forecasters cut non-OPEC oil supply growth

Tue Jun 10, 2008 5:01pm EDT

By Chris Baltimore

 

WASHINGTON (Reuters) - Two of the world's most closely watched energy forecasters on Tuesday slashed predictions for output from oil fields outside the OPEC cartel in 2008 -- more bad news for a global economy struggling with record high oil prices and tight supply.

 

The dimming outlook for world production will keep the market on edge even as high prices hit consumers and cut into the pace of global demand growth.

State of Oil Production

Today

 

Guy Caruso, chief of the Energy Information Admin., offers a long-term prognosis of the oil supply and demand. The House Energy Cmte. considers whether or not Saudi Arabia can produce 12 million barrels a day as claimed, and if oil production has peaked.

 

Now on C-SPAN3

http://www.c-span.org/watch/cs_cspan3_wm.asp?Cat=TV&Code=CS3

 

Or read about it below....

 

http://www.newsday.com/news/nationworld/wire/sns-ap-newsbrief,0,1411218.story

 

Energy Dept. says oil, gas prices to stay high

 

WASHINGTON (AP) -- Motorists can expect gasoline prices around $4 gallon through next year, the Energy Department said Wednesday, with oil prices staying well above $100 a barrel. Crude oil prices are likely to average $126 a barrel in 2009, $4 higher than this year, as oil supplies and demand are expected to remain tight, Guy Caruso, head of the department's Energy Information Administration, told a House hearing.

 

http://www.businessweek.com/globalbiz/content/jun2008/gb20080610_688373.htm?chan=top+news_top+news+index_global+business

 

Oil Could Hit $400 a Barrel by 2018

That's the forecast from U.S. Navy Admiral William Owens, who sees rising tensions between the U.S. and China as they scramble for energy

by Jame DiBiasio

 

US military analysts looking at trends that will affect the relationship between America and China believe they see clear signs of future trouble—and are developing ideas to foster cooperation to try to avoid conflict.

 

Admiral William Owens, former vice-chairman of the joint chiefs of staff—the second-highest ranking position in the US military—and former commander of the US Sixth Fleet in the Pacific, addressed the Asia Society in Hong Kong this week regarding some of the economic, social and military projections regarding US-China relations in 10 years' time. 

If gas is $4 a gallon now at $130 barrel. In 10 years they say it may be $400 a barrel. That should be about $15-16 a gallon. wow this world is going to end because of Oil. Both China and the US has nukes.

400.00 a barrel will never happen. Our economy as well as the global economy would tank well before then driving down consumption as well as the price. But it wont matter anyway cause if that happens most of us will be broke and not be able to afford it at 50.00 a barrel. Bottom line is theres a shit storm coming and no one wants to acknowledge it. By the time they do it'll be too late.

most of us will be broke and not be able to afford it at 50.00 a barrel

 

I hope thats a typo ;)

most of us will be broke and not be able to afford it at 50.00 a barrel

 

I hope thats a typo ;)

 

I hope it doesnt happen. Have you noticed whats happening in Europe with oil at 135-140 a barrel? Here's one article:

 

http://news.yahoo.com/s/afp/20080611/bs_afp/worldinflationprotestenergytransport

 

 

I wouldn't be surprised to see what's happening in Europe happen here, perhaps in the next 6-18 months. I write freelance articles for national transportation publications and there's a lot of experts I've interviewed who are amazed at how fast the energy markets, their economics and the politics which surround them are changing. Some of it is actually good change (ie: reduced driving/less air pollution, rising transit use, people walking more, rediscovery of cities, federal funding program for Amtrak expansion, etc). But since we're so unprepared for this, most of the effects are going to be difficult.

Long, but worth reading....

__________________

 

http://ngm.nationalgeographic.com/2008/06/world-oil/roberts-text

 

Published: June 2008

 

Tapped Out

World oil demand is surging as supplies approach their limits.

By Paul Roberts

 

In 2000 a Saudi oil geologist named Sadad I. Al Husseini made a startling discovery. Husseini, then head of exploration and production for the state-owned oil company, Saudi Aramco, had long been skeptical of the oil industry's upbeat forecasts for future production. Since the mid-1990s he had been studying data from the 250 or so major oil fields that produce most of the world's oil. He looked at how much crude remained in each one and how rapidly it was being depleted, then added all the new fields that oil companies hoped to bring on line in coming decades. When he tallied the numbers, Husseini says he realized that many oil experts "were either misreading the global reserves and oil-production data or obfuscating it."

.....

 

Paul Roberts is author of The End of Oil, published in 2004. His new book, The End of Food, will be out this summer from Houghton Mifflin Harcourt.

http://www.nytimes.com/2008/06/14/business/14oil.html?hp

 

Plan Would Lift Saudi Oil Output to Highest Ever

   

By JAD MOUAWAD

Published: June 14, 2008

 

Saudi Arabia, the world’s biggest oil exporter, is planning to increase its output next month by about a half-million barrels a day, according to analysts and oil traders who have been briefed by Saudi officials.

 

The increase could bring Saudi output to a production level of 10 million barrels a day, which, if sustained, would be the kingdom’s highest ever. The move was seen as a sign that the Saudis are becoming increasingly nervous about both the political and economic effect of high oil prices. In recent weeks, soaring fuel costs have incited demonstrations and protests from Italy to Indonesia.

Good article. I hope this doesn't damage Saudi wells any more than they already have by their injecting seawater into the wells to maintain reserve pressure.

 

While peak oil remains a threat, I've said it before that this is the more immediate oil threat -- declining net oil exports. Call this a canary in the coal mine....

 

http://netoilexports.blogspot.com/2008/05/net-oil-exports-may-2008-update.html

 

http://i208.photobucket.com/albums/bb90/Peepersk/energygraphics/Net_exports-2008.gif

 

    A study from a few years ago projected that Saudi Arabia would be the last country to peak in 2011. The same study projected the world to peak in 2008.

 

    When you think about it, Saudi Arabia has only one main natural resource: petroleum. If Saudi Arabia had petroleum as well as farmland, like Ohio, chances are that they would have consumed most of their oil themselves. They HAD to trade it for food and other things.

If you can't laugh at peak oil and economists, then what the hell has the world come to?!?!

 

The good news is that OPEC is no longer in control of the oil price.

The bad news is that nobody is in control of the oil price.

 

****

 

Two economists find themselves locked in a basement. They're not sure what time it is, because it's dark and they can't read their watches. They think it's nearly dinner time, cause they're starting to feel hungry. But they're not worried; they are not starting to panic - because they know that their demand will create sandwiches for them!

 

 

****

 

Reminds me of Brian Fisher from ABARE's statement to the Senate committee hearing into peak oil:

 

"If the price of eggs is high enough, roosters will start to lay eggs"

 

 

****

 

Economists have successfully predicted seven of the last five recessions.

 

****

 

"Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist."

Kenneth Boulding

 

****

 

The First Law of Economists: For every economist, there exists an equal and opposite economist.

 

The Second Law of Economists: They're both wrong.

 

****

 

An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.

 

****

 

A physicist, a chemist and an economist are stranded on an island, with nothing to eat. A can of beans washes ashore. The chemist says, "Let’s build a fire until the beans explode out of the can." The physicist says, "Great idea! I'll plot the trajectory so we can catch them". The economist shakes his head and says, "No, no, no. Lets assume that we have a can-opener..."

 

****

 

A party of economists was climbing in the Alps . After several hours they became hopelessly lost. One of them studied the map for some time, turning it up and down, sighting on distant landmarks, consulting his compass, and finally the sun.

 

Finally he said, ' OK see that big mountain over there?'

 

'Yes', answered the others eagerly.

 

'Well, according to the map, we're standing on top of it.'

 

****

 

Q: Why did God create economists?

A: In order to make weather forecasters look good.

 

****

 

Definition of an Economist: Someone who knows a little math, but doesn't have enough personality to become an accountant.

 

****

 

Q:What do you get when you cross an economist with a werewolf?

A: Nothing. There are some things even a dog won't do.

 

****

 

Q:How many economists does it take to change a lightbulb?

A: None. They can't see the spreadsheet to decide if the lightbulb is worth changing.

 

****

 

In the year 2150 economists will say: See, supply and demand works. As the supply of oil declined, so too did the demand for people.

 

****

 

"If you took all the economists in the world and laid them end to end, they wouldn't reach a conclusion."

 

****

 

How do an economist and a petroleum geologist make love? One with an invisible hand, the other with an invisible finger.

 

****

 

An economist walks along a street with his wife next to him. Suddenly she shouts: "Look, there is a 10 Euro bill right in front of us - let's pick it up!"

The economist keeps on walking without ever looking down, dragging his wife along.

"But dear, if there would have been a 10 Euro bill, someone else would have taken it already."

 

****

 

Three people are in the same job interview: a mathematician, a statistician and a mathematical economist.

 

Mathematician is interviewed first. Interviewer shows him a Hubbert curve of oil production and asks what does it imply.

 

Mathematician answers that the function looks like a derivative of the logistic function and that it implies a fast decline in available production flow as a function of time after global maximum has been reached.

 

Interviewer asks "Are you sure?"

 

Mathematician answer, annoyed: "Yes, of course I'm sure"

 

Mathematician is dismissed.

 

Statistician is shown the same curve and asked what it implies.

 

Statistician answers it has a resemblance of a normal distribution, perhaps a derivative of logistic function, with badly defined error margins, regardless implying a probable decline of production flow in some not completely known point in time.

 

Statistician is dismissed.

 

Mathematical economist is shown Hubbert curve and asked what it implies.

 

The economist pulls down the curtains, closes the door, leans over to the interviewer and asks:

 

"What would you like it to imply?"

 

They hire the economist.

Matt Simmons, one of my heroes:

 

Peak Oil Media: Simmons Says Raised Saudi Oil Output Is 'Drop in Bucket' on Bloomberg TV

Another interesting video... Gotta love billionaire oilmen who are now investing big bucks in wind energy and other renewables because "the oil party is over":

 

The video archive of the Senate committee with T Boone Pickens is at http://energy.senate.gov/public/_files/energy061708.ram (RealPlayer format)

 

Witnesses

 

Panel 1

The Honorable Harry Reid - Member, U.S. Senate

 

Panel 2

The Honorable Kevin Kolevar, United States Department of Energy

Mr. T. Boone Pickens, BP Capital

Mr. Rich Halvey, Western Governors' Association

Mr. Bryce Freeman, Wyoming Infrastructure Authority

 

Panel 3

The Honorable Gary Hanson, South Dakota Public Utilities Commission

Mr. Stephen Wright, Bonneville Power Administration

Mr. Will Kaul, Great River Energy

Mr. Don Furman - , Representing American Wind Energy Association

The major oil companies have been doing this for years. Some of the largest investors (and producers) of renewable energy -- wind, solar, geothermal..., have been the big "oil" companies. They have the cash, the research (and the money to fund the research), and the realization that oil is a finite resource.

In that video who is he to say oil is too low because we pay 3-4% of our income on Oil. Screw him.

 

Edit: He just said 95c a cup is too cheap for oil. That's $600+ a barrel. This guy should be shot.

Why did he say that? Think about it.... How much do you pay for a cup of coffee? Although I realize some might disagree, coffee doesn't run the world's economy like oil does. If oil is so valuable, then why not price it as such so that future generations will have a chance to realize what amazing stuff it is?

We don't buy coffee by the gallons.

So? How does varying the unit of measurement of your purchase change your out-of-pocket expense?

Maybe coffee is too high. If gas ever cost 95c a cup. That guy that said this wouldn't have a business long before it got to that amount. It should take 16 cups to make a gallon. Heck maybe we are paying to little for water maybe that should be $2 a cup. As i think water is more important than Oil.

This should help keep the world demand for oil running high even with the US economy going into the dumps. SUVs for all.

 

China's car sales up 17.41% in first five months of 2008

 

"BEIJING, June 7 (Xinhua) -- Passenger car sales in China in the first five months of 2008 rose 17.41 percent over the same period a year earlier, an industry group said on Friday.

 

    According to the China Association of Automobile Manufacturers (CAAM), car sales reached 3.02 million units, including 2.23 million sedans, 179,200 sport-utility vehicles (SUV) and 93,200 multi-utility vehicles (MUV) in the period.

 

    Sales of passenger cars, SUV, and MUV in May alone totaled 564,600, up 16 percent over the same month last year. The growth rate was quicker than April's 11 percent.

 

    Auto sales in China were expected to exceed 10 million units this year, which would represent a full year sales growth of 14 percent, CAAM said.

 

    Auto sales have maintained double-digit growth since the beginning of the year, in contrast to weakening sales in much of the world's other major auto markets."

http://news.xinhuanet.com/english/2008-06/07/content_8323219.htm

 

So? How does varying the unit of measurement of your purchase change your out-of-pocket expense?

 

Volume. 

Food product requires higher level of perceived purity to attain comfort...which is inferred by a high price.

 

So what do you guys think will be the long term effect of the subsidized gasoline in PRC?  It will have to come home to roost sooner or later  :|

Tough question, since I've never been to China and don't know the culture. I'm not sure they fully grasp the supply-demand-price equation yet, at least in terms of trusting it to perform its "magic" without interference and to see its outcomes. I wouldn't expect them to understand. I do fear that China is creating a status quo that it cannot afford to maintain. Already we're seeing many smaller businesses providing their own electricity with diesel-powered generators because utilities are having a hard time keeping the lights on all the time. That's adding to the petroleum supply woes in a nation blessed (or cursed: the PRC's air pollution) with a large amount of coal supplies. As high fuel prices cause increased localization of consumer product/supply in America and Europe, and China's fuel subsidies hit the government ever harder, the Chinese economy will likely face a correction or worse. I wonder how the people will respond....

Do I read counterviews on peak oil? Not only that, I post them, too (even though in the following case there's so many inaccuracies that I'm amazed that anyone is actually stupid enough to believe it)...

 

http://www.dailytech.com/Despite+Reality+Belief+in+Peak+Oil+Persists/article12119.htm

 

Blog: Science

Despite Reality, Belief in Peak Oil Persists

Michael Asher (Blog) - June 19, 2008 10:21 AM

 

World oil production continues to rise; outlook good for next decade or more.

 

Peak Oil, a theory popular among Chicken Little types, has been much in the news recently.  The idea behind it is that future production levels of any consumable resource can be reliably predicted based off a single factor: the size of the known reserves.  Once half those reserves have been consumed -- so the theory goes -- production will steadily fall, no matter what.

 

So when world petroleum production dipped slightly in 2006 and again in 2007, this predictably brought the usual Peak-Oil disciples out of the woodwork.  The global oil peak -- first predicted for the mid-1990s, and many times since -- was finally upon us, they said. From this moment on, production would steadily fall, culminating in the end of life as we know it.

http://www.sustainablebusiness.com/index.cfm/go/news.feature/id/1572

 

 

The Truth About America’s Energy:

Big Oil Stockpiles Supplies and Pockets Profits

06/18/2008

 

The fact is the U.S. simply can't drill its way to lower prices at the pump. Other options, from greater energy efficiencies to the development of alternative fuels, are essential to reducing dependency on petroleum fuels and lowering fuel costs.

 

Since the 1990s, drilling on federal lands has steadily increased as a result of federal government policies that encourage development. The number of drilling permits has exploded in recent years, rising from 3,802 five years ago to 7,561 in 2007. Between 1999-2007, the number of drilling permits issued in public lands increased by over 361%, yet gasoline prices have also risen dramatically, contradicting the argument that more drilling means lower gasoline prices. There is simply no correlation between the two.

This is in response to a post at the "high fuel prices" thread. This is a discussion more appropriate here...

 

Aletheia,

 

Welcome to the forum. I appreciate your comments and discussion.

 

I realize I do come across as sounding "too comfortable" in my beliefs, my awareness and even my "told you so" statements. But that's who I am. And I am comfortable with what I am.

 

I also realize history is replete with bad predictions of gloom and doom. After all, Chicken Little is one of the most oft-told children's tales. I also seem to recall Chicken Little was right, just premature. And I don't recall making predictions about anything until five years ago, and even then limiting it to the potential implications of peak oil. It's a fascinating subject which holds great interest for me and others on this forum.

 

I don't necessarily believe that peak oil need be all gloom and doom -- unless we fail to prepare and respond to it appropriately. In fact, a great many positives can come out of it, some of which we're already seeing. I love seeing so many people out walking, biking and taking transit. The other day I saw more people waiting for buses on Cleveland's Public Square than I think I've ever seen in my life. A friend of mine from Chicago visited in May and also noted the increased number of people on the square, and they've only increased since. I'm loving that part of it.

 

But I don't like the higher food prices or the thought of not being able to afford flying to Europe anymore. But I'm saving my money and hope to join with another UrbanOhioan in buying some farmland to address the issue of food costs. I'm doing what I can to prepare.

 

Aletheia, we all have our own beliefs and predictions of what will happen. You might even be as comfortable with them as I am with mine.

 

Ultimately, no person can tell another what to do. I encourage you to find your way and wish you luck in whatever path you take. Don't be a stranger and please post here more often.

 

From the Fuel Prices thread:

 

    "There is a long history of very smart, intelligent people making all sorts of apocalyptic predictions about population and resource availability..."

 

    This is true, and Paul Elrich, author of "The Population Bomb" was one of them.

 

    The key is "apocalyptic predictions," or an impending catastrophe. Indeed, some in the peak oil camp are looking at a Mad Max scenario. However, not all are. It is important to realize that we are looking at a long term trend.

 

    Just a few years ago it was predicted that if gasoline rose to $3.00 a gallon, all kinds of trouble would occur. At this point it's $4.00 a gallon, and while there is a lot of whining, there hasn't been any mass starvation, riots, etc., at least in Ohio. We are so affluent that we have a lot of room to fall back, and people have made adjustments.

 

    "Times change, and we change with them."

    - William Henry Harrison

   

I'm pretty sure economics will come to the rescue.  There are definitely more things going on but the value of the dollar needs to improve and hopefully the next prez can focus on that.  Also a real energy and transportation policy needs to be implemented.  Its quite stunning that we get a president in that thinks he's part of a bigger plan of destiny.  Otherwise I have faith in technology coming through.  There seem to be multiple fronts of breakthroughs that would seem to be able to alleviate any future oil crisis. Something the Saudi's actually fear is the gumption of the US.  They know people will come out of the woodwork in the US to create other vehicles that don't run on gasoline as the prices go up.  Also, as the price goes up people have a real necessity to not waste fuel.  People are feeling the pain and making decisions they haven't had to make in a long time: Find a closer job, move closer to the job, or turn in the large SUV for a Corolla.  Any of those options are a plus for the US since that then makes that person more energy efficient.  This can be repeated millions of times. 

 

People are also using their boats, jet skis, and other recreational vehicles a whole lot less this year. I'm definitely expecting a decline in gasoline usage this year.  Plus many new fuel efficient cars are about to come on the market like the VW Jetta which should get 50+/mpg.  Many more people use mass transit, ride motorcycles or bicycles than have in the last 10 years. 

So I wouldn't be surprised to see 2.50/gallon gas come January.  Perhaps under $2 by the next Summer.  The longer this is a hardship the Saudis know from the 1970s the more likely the US will shift to more fuel efficient technology.

  My main feeling is that the Russian Oligarchs with help from the government are the main ones manipulating the oil market.

Please read this:

 

http://www.nyswda.org/LegPosition/HirschReport.htm

 

I also encourage you to read the full report. This was a seminal work into the research of peak oil and how to prepare for curtailing an appetite so massive that it will take decades to adjust with minimal economic hardship (it no longer appears we have decades)...

 

http://www.netl.doe.gov/publications/others/pdf/Oil_Peaking_NETL.pdf

http://www.ft.com/cms/s/0/5f9f9f96-4060-11dd-bd48-0000779fd2ac,s01=1.html?nclick_check=1

Hot air clouds the energy debate

By Clive Crook

The Financial Times

Published: June 22 2008 18:58 | Last updated: June 22 2008 18:58

 

Week in and week out, Washington gives master classes in making simple questions complicated. It is a bipartisan effort of mutually assured irrelevance. Perfected over years, a combination of tribal ideology, empty posturing and feverish displacement activity generally does the trick. You see it everywhere, but nowhere more than in energy policy.

 

The US constitution makes it difficult for politicians to do much (except fight wars) and this avoids a lot of damage that would otherwise result. But now and then some intelligent policymaking is needed, and energy is again a case in point.

Nowadays most Americans want to see action on global warming.

 

    For all the Bush-bashing, our president had two good quotes about oil:

 

  "We are addicted to oil,"

  and

  "We use too much oil, and oil supplies are dwindling. That is why the price of oil is so high."

 

 

       

 

 

The problem is he has done nothing to show leadership on reducing demand.  His administration has consistently tried to eliminate Amtrak and made federal (FTA) funding far more difficult for local transit systems to obtain, among other things.  His quotes , to me, are little more than great insight into the obvious.

If the Democratic party were correct about speculation and gouging, it should be demanding a Nobel Prize for futures traders and oil titans. They have done more for the planet than Al Gore, making the pump price of petrol so unthinkably expensive that the country has started to economise.

 

That's the quote of the week.

From today's Chicago Tribune....

 

America's untapped oil

Lawmakers lay into big oil for leaving million of acres untouched while at the same time asking to drill in Alaska and off the coasts.

By Steve Hargreaves, CNNMoney.com staff writer

Last Updated: June 23, 2008: 4:31 PM EDT

 

NEW YORK (CNNMoney.com) -- Oil companies and many lawmakers are pressing to open up more U.S. areas for drilling. But the industry is drilling on just a fraction of areas it already has access to.

 

Of the 90 million offshore acres the industry has leases to, mostly in the Gulf of Mexico, it is estimated that upwards of 70 million are not producing oil, according to both Democrats and oil-industry sources.

 

Find this article at:

http://money.cnn.com/2008/06/23/news/economy/oil_drilling/index.htm?cnn=yes 

 

iTunes is offering a free episode of Black Gold. . . "Three crews of roughnecks hit the ground running in the race to find oil, but all three face disaster. From a crew that can barely get the system started to a bad injury -- there’s big drama on the rigs and one leader may not survive the first week."

 

You can download it from this link - http://phobos.apple.com/WebObjects/MZStore.woa/wa/viewTVSeason?i=283316028&id=281941176&s=143441&v0=ITS-NAUS-NVS061908MT-C0001722-0121999

 

Coming to a pristine coastline near you. ;-) This will be the near future. Drilling anywhere and everywhere.

I see what the US is doing. They want to use everyone elses resources and save our own for hard times.

Resource wars have also been forecast as a consequence of peak oil. The assumption apparently is that human beings are driven by money and ego, not brains and sensitivity....

 

http://www.bloomberg.com/apps/news?pid=20601082&sid=aWWcSYKqThp8&refer=canada

 

Russian Army Trains for Arctic Combat to Defend Resource Claim

 

By Bradley Cook

 

June 24 (Bloomberg) -- Russia's military is training its forces for combat in the Arctic to protect its claims to resources on the continental shelf.

 

``After the heads of several countries disputed Russia's rights to the resource-rich Arctic Ocean shelf,'' the military ``immediately'' began adapting its training plans for units ``that might be called upon to fight in the Arctic,'' Lieutenant General Vladimir Shamanov said in an interview published today in Krasnaya Zvezda, or Red Star, the army's newspaper.

 

The Arctic shelf may hold 10 billion tons of oil equivalent, as well as gold, nickel and diamonds, according to the Russian government, which sent a mini-submarine to plant a flag beneath the polar cap in August. Danish Science Minister Helge Sander called the move ``a joke,'' while Canada responded by saying it would move troops to its north to assert Arctic sovereignty.

Financial disarray and mortgage meltdowns have been among the chief, predicted outcomes of peak oil. Needless to say, this piece has been posted by folks all over the peak oil forums today as another "I told you so." They call this stuff 'doomer porn' on those sites.......

 

http://www.bloomberg.com/apps/news?pid=20601109&sid=a8j2MuFdqA3s&refer=home

 

Faster Inflation May Unleash `Financial Tsunami': Chart of Day

 

By Mark Gilbert

 

June 24 (Bloomberg) -- Rising consumer prices will leave more U.S. consumers unable to pay their debts and may lead to a ``financial tsunami,'' according to Bennet Sedacca, president of money manager Atlantic Advisors LLC in Winter Park, Florida.

 

``Whether it is anecdotal or statistical evidence, I see inflation everywhere, and this is where the financial tsunami cometh,'' Sedacca wrote in a report published yesterday. ``A battered, over-indebted consumer, if forced to retrench, could create even more problems for the banking system as loan delinquencies would begin to rise even further. All sorts of delinquencies are rising. This is now a systemic issue.''

^---- Wall Street overreacts to everything. The fact that news came out is enough to send prices up or down.