Land of Free

[Allan from Fallbrook]

Sandi: I would argue that much of the increase in the price of oil has to do with China’s energy demands as it’s economy expands. Look at the prices of steel, iron ore, and other materials and consumables. All are up, and considerably. To argue that the price of oil is up solely because of the Iraq war is somewhat specious, to say the least.

As far as Russia goes: It’s economic success is nearly all due to it’s energy exports. It is lapsing back into authoritarianism, it is corrupt and nearly entirely dependent on oil and natural gas exports for hard currency. It has no economy to speak of, and foreign investors are running for the exits.

In the case of both China and India, they have both experienced exponential growth. However, both of them are now suffering from overstretch. Labor costs have mushroomed in both countries, and both are hamstrung due to lack of qualified management and legal personnel. Neither economy can continue expanding at the present rate, and neither possesses a strong enough government, legal system or financial infrastructure to support future, sustained growth.

I can’t comment on Brazil, but if history is any indicator, Brazil is probably part of the same boom and bust cycle that most South American countries such as Venezuela, Brazil and Argentina find themselves part of periodically.

The “allies” we have alienated, such as Germany, France and Italy, are part of the same group that have done nothing to combat terrorism, or bear their fair share of responsibility for ensuring stability and order through either NATO or the UN. If I am going to entrust my security to someone, I doubt seriously it would be either the UN or the european security collective (CSCE).

[Arraya]

what is the relationship of the cost of oil to the cost of gas? i suspect that gas is being artificially suppressed…

It appears the gas is being suppressed. Gas did not follow the crude run up at all. Not sure why though, it always followed it up until about 6 months ago then disconnected…

[Arraya]

what is the relationship of the cost of oil to the cost of gas? i suspect that gas is being artificially suppressed…

It appears the gas is being suppressed. Gas did not follow the crude run up at all. Not sure why though, it always followed it up until about 6 months ago then disconnected…

[Arraya]

what is the relationship of the cost of oil to the cost of gas? i suspect that gas is being artificially suppressed…

It appears the gas is being suppressed. Gas did not follow the crude run up at all. Not sure why though, it always followed it up until about 6 months ago then disconnected…

[Arraya]

what is the relationship of the cost of oil to the cost of gas? i suspect that gas is being artificially suppressed…

It appears the gas is being suppressed. Gas did not follow the crude run up at all. Not sure why though, it always followed it up until about 6 months ago then disconnected…

[Arraya]

what is the relationship of the cost of oil to the cost of gas? i suspect that gas is being artificially suppressed…

It appears the gas is being suppressed. Gas did not follow the crude run up at all. Not sure why though, it always followed it up until about 6 months ago then disconnected…

[Arraya]

“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”

This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices

They do publish production and consumption numbers its not that hard to figure out.

We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.

Also, the prices quadrupled with a 4% supply loss in the late 70s

http://en.wikipedia.org/wiki/1979_energy_crisis

[Arraya]

“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”

This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices

They do publish production and consumption numbers its not that hard to figure out.

We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.

Also, the prices quadrupled with a 4% supply loss in the late 70s

http://en.wikipedia.org/wiki/1979_energy_crisis

[Arraya]

“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”

This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices

They do publish production and consumption numbers its not that hard to figure out.

We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.

Also, the prices quadrupled with a 4% supply loss in the late 70s

http://en.wikipedia.org/wiki/1979_energy_crisis

[Arraya]

“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”

This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices

They do publish production and consumption numbers its not that hard to figure out.

We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.

Also, the prices quadrupled with a 4% supply loss in the late 70s

http://en.wikipedia.org/wiki/1979_energy_crisis

[Arraya]

“Regarding oil. The cost of oil was less than $20/barrel before the war. Now it’s about $100. Import from middle east constitutes less than 50% of US supply. Even if some evil forces came to power over there and flatly refused to trade with us, what would happen? Could the price go up 5 times? No way! We could pay double to other oil producers, and buy as much as we needed. And those Arab countries would still have to sell their oil to someone, thus filling demand on the market. The high oil price today is a result of uncertainty. Markets are afraid of another war that could completely cut oil supply from the region, and THAT is the reason for todays prices.”

This is completely absurd. The reason for high oil prices is we peaked production in 05 and have had flat oil production since while china and indias demand has sky rocketted…. Flat supply +higher demand = higher prices

They do publish production and consumption numbers its not that hard to figure out.

We all have to remember our biggest supplier of oil, mexico, wells are declining at an alarming rate(7-10% year) and they will not have oil to export in 5-7 years. That puts all the power in the bad guys hands.

Also, the prices quadrupled with a 4% supply loss in the late 70s

http://en.wikipedia.org/wiki/1979_energy_crisis

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