San Diego Housing Bubble News and Analysis

If the dollar goes to zero then the price of oil goes to infinity. Neither are possible.

We Were Warned: Tomorrow's Oil Crisis

I just watched this last night on CNN. I didn't know that Brazil is completely independent of oil from other nations. They use "E85" and produce all of their own "sugar-cane ethanol". The world production of oil could stop completely and Brazil would go on as if everything were normal. Besides Rio there's another reason to move there :)(http://edition.cnn.com/2006/WORLD/americ...)

http://www.cnn.com/2006/EDUCATION/03/14/...

Program Overview

It is September 2009. A Category 5 hurricane roars through Houston, destroying oil refineries, drilling platforms and pipelines--the complex system that provides a quarter of our nation's daily fuel supply. Three days later, terrorists attack two key oil installations in Saudi Arabia, the world's largest supplier. In the days and weeks that follow, gasoline prices hit record highs, food prices soar as trucks cannot afford to make deliveries, and Americans begin to realize that their very way of life is in peril.

In We Were Warned: Tomorrow's Oil Crisis, CNN's Frank Sesno explores the potential ripple effects of this frightening scenario. The events depicted are hypothetical, but oil experts believe the scenario is entirely plausible. His interviews with energy experts reveal that we are nearing the point at which the world, led by the U.S. and China, will begin to consume more oil than can be pumped from the ground and the oceans. Tracking the global race to find new pools of oil, Sesno also considers the viability of alternative fuels, such as ethanol, which is used as fuel for 40% of cars in Brazil. Throughout his investigation, Sesno tries to find out whether any of these ventures can solve our looming energy crisis or whether we are already too late.

So, if this scenario comes to pass, should we go to ethanol and let the countries that depends on our corn starve?

Think about it this way. We have the worlds largest oil supply in the US that is untapped...

http://www.nextenergynews.com/news1/next...

http://www.dailyreckoning.com/rpt/OilSha...

The current price of oil makes tapping these reserves extremely cost effective. The world is predicting peak oil in the near future while more than half of the world's population is currently industrializing (Chindia) and raising demand heavily. We currently control the largest current supply in the Middle East (Iraq) and they owe us for our costs of their freedom. I ask you who is eventually in control of the oil economies of the world?

It might be a case of dog eat dog, so it is either that or increase crop production, stop subsidizing farmers not to grow crops and think about ways of reducing in all areas.

And, yes, I agree with more drilling and using our own resources rather than making our enemies richer. I would prefer a technological break through that would create a cleaner, safer fuel that has less impact on the environment, but everyone seems opposed to nukes.

I was raised in North Dakota and my parents still live there. The oil reserves there are real and the economy is going crazy up there due to oil drilling. The oil has always been there, it was just cheaper to go overseas.

North Dakota is the Bakken Shale formation. It's not oil shale however it is oil deposits in rock. Kind of a pain to get out. Anyway recoverable reserves are from 500 million to 2.1 billion. That's about 4-12 days for the world. About 16-48 days for the US. Considering it will take 15-20 years to remove. Well, you can see it really won't help price.

The other oil shale mentioned, well that is a net energy loser. It takes more to get it out. It will never become economical.

The world uses 3 for every 1 it finds. Not the best system. There is gonna be problems.

We'll probably be down to one national airline within 24 months.

Cheers

We currently control the largest current supply in the Middle East (Iraq) and they owe us for our costs of their freedom. I ask you who is eventually in control of the oil economies of the world?

Um, WHAT? Where do you come up with this stuff?

"Iraq claims to have the world's fourth largest reserves of oil at approximately 115 billion barrels (18.3×109 m3), although it would rank third if Canadian reserves of non-conventional oil were excluded."

Also seems pretty obvious that most Iraqis aren't real thrilled about the folks occupying their country these days, unless one chooses not to confront the reality that surrounds all Americans. I challenge anyone to produce a single man-on-the-street Iraqi that feels like they're FREE right now. It ain't gonna happen.

Whatever. Next caller, please.

Oil price rise and dollar fall are correlated.

Now if Oil goes to $200/BBL and dollar falls another 40%

suburbia implodes

"Um, WHAT? Where do you come up with this stuff?"

Oops... sorry I missed Saudi as the first and Iraq as second largest reserves in the ME. It's not much of a miss and anyone who thinks we didn't go over there for the oil needs to have their heads checked. We obviously didn't go for the WMDs or terrorist cells dude! Doesn't matter what the Iraqi's think about American's. We never cared what they thought in the first place and now they have a large IOU to the US. They'll have to pay up one way or another.

Oil shale became neutral cost recovery when crude prices passed $60-70 per barrel.

In my humble opinion, the more decentralized we are, be it in energy, economics, or government rule, the better off we will generally be. Self-sufficiency is a term that is completely foreign to our society these days. Those who consider an off-grid, or semi off-grid lifestyle are labeled as hermits and kooks. Just think what it would be like if people could provide all, or at least a portion of, their own energy via solar panels, or grew some of their own food.

When I can finally buy a house I hope to be able to produce 100% of the needed electricity via solar and a fuel cell generator and grow some of our own food. The only problem then is gas for the stove and furnace. Power outages and rolling blackouts would be a think of the past.