• Quick note - the problem with Youtube videos not embedding on the forum appears to have been fixed, thanks to ZiprHead. If you do still see problems let me know.

$114/bbl oil

The Central Scrutinizer said:
Long term, this is unsustainable. IMO.
Click to expand...
No I agree, it is merely inflationary (for the future) to hold prices down with debt issuance. However, urbanisation is very unlikely to stop advancing. I also think that cities are perhaps more energy efficient per capita than rural areas, so there is no reason why it should.
 
Francesca R said:
No I agree, it is merely inflationary (for the future) to hold prices down with debt issuance. However, urbanisation is very unlikely to stop advancing. I also think that cities are perhaps more energy efficient per capita than rural areas, so there is no reason why it should.
Click to expand...

what are you doing to protect your self from inflation? and what kinds of jobs do you see in the future? With higher energy prices will wipe out lots of jobs less energy use. Suburbia is dead in the water, the problem is see is that suburbia creates a ton of jobs. What will replace those jobs.
 
diggy70 said:
what are you doing to protect your self from inflation?
Click to expand...
Again you sidestep the discussion to try to re-transmit your own sensationalist points, and I think you fail to understand the situation. There is no particular inflation threat in the "rich" world. Growth is slowing down, and is practially zero in the States. Excluding food and energy, core inflation is not worryingly high (and if you think the statistics are a conspiracy I would respectfully ask you to discuss that on the appropriate forum). Wages are also not rising much.

The inflation problem exists in rapidly growing emerging economies where energy intensity is accelerating and where food is a larger fraction of consumers' spending. And I pointed out that price subsidies by these governments merely accelerate money supply growth and defer inflation to future generations via public debt rising--and I agree with the unsustainability of that.

One way or another, China, India, Russia and Brazil need tighter monetary policy and/or stronger exchange rates (Brazil has the latter already), yet they are resisting these developments (which would have happened already if FX rates were freely floating and central banks were independent). So when it eventually transpires the result could be an overshoot--soaring capital inflows, overvalued currencies, and a nasty accident. It has happened before.

"Surbubia" is not dead in the water. And cities like Mumbai and Sao Paolo--which have terrible infrastucture predicaments already--will still get larger.

Expensive oil will not kill western economies. It is an incentive for changes in behaviour. And people respond to incentives.
 
Last edited:
Every time I come into this section I feel silly. You guys are so far over my head I can't even see you.

All I know is, petrol is currently very expensive, which is not good for me, someone saving for my first car.
 
rjh01 said:
Petrol at the moment is cheap. You wait until next year. Then it will be less cheap. Expensive is what you pay when oil hits the peak.
Click to expand...

Expensive is what oil is when there are cheaper alternatives. Oil use for process heat and electric power generation is very expensive. Oil use for vehicles is not.
 
Damien Evans said:
Every time I come into this section I feel silly. You guys are so far over my head I can't even see you.
Click to expand...

LOL, I feel the same way, particularly in my "contributions" to the gold thread. If I could mention any other ego-bruiser to an acquaintance it would be this business forum :).

I'd still buy gold though. And a FNP90. Yeah, I'll eviscerate you with lead on the way to the woods and my secret gold stash :p
 
Dragoonster said:
LOL, I feel the same way, particularly in my "contributions" to the gold thread. If I could mention any other ego-bruiser to an acquaintance it would be this business forum :).

I'd still buy gold though. And a FNP90. Yeah, I'll eviscerate you with lead on the way to the woods and my secret gold stash :p
Click to expand...

Guns are cool. but oil furtures with make you rich,,,,,

Please all you who think 200 oil wont start ww3,, get your head out of you @@@. other than Jonny you all have Bad view on oil. oil is the life of modern life. when it aint cheep we fight plain and simple.
 
diggy70 said:
Guns are cool. but oil furtures with make you rich,,,,,

Please all you who think 200 oil wont start ww3,, get your head out of you @@@. other than Jonny you all have Bad view on oil. oil is the life of modern life. when it aint cheep we fight plain and simple.
Click to expand...

Ion?
 
diggy70 said:
Please all you who think 200 oil wont start ww3,, get your head out of you @@@. other than Jonny you all have Bad view on oil. oil is the life of modern life. when it aint cheep we fight plain and simple.
Click to expand...
Oh. Well WW3 should be good for the oil price, so $300 I suppose. Then that may start an even worse WW4 which will send crude soaring to $600 and trigger WW5, which ought to put a bunsen burner under the energy market.
 
diggy70 said:
Guns are cool. but oil furtures with make you rich,,,,,

Please all you who think 200 oil wont start ww3,, get your head out of you @@@. other than Jonny you all have Bad view on oil. oil is the life of modern life. when it aint cheep we fight plain and simple.
Click to expand...

Indeed. Just look at historic oil prices.

I'm sure we all remember the two world wars: the first in the 1860s and the second in the late 1970s. Also, we look back with nostalgia on the long peace of 1931-1972, when the world no longer trembled under the threat of war.

Oh, when will we ever learn from the lessons of history?

rjh01 said:
Petrol at the moment is cheap. You wait until next year. Then it will be less cheap. Expensive is what you pay when oil hits the peak.
Click to expand...

Are you suggesting that peak prices will coincide with peak production?
 
You must log in or register to reply here.

Back
Top Bottom