An interesting article about Oil Production

[classicman]

Hey Tom - you aren't the only one reading The Economist - reference ... seems as though you were presenting their opinions as your own in post #5. Just sayin.

[tw]

Originally Posted by classicman

Hey Tom - you aren't the only one reading The Economist - reference ... seems as though you were presenting their opinions as your own in post #5. Just sayin.

The Economist only reiterated what I also have been posting for some time (except a newest fact - bio-fuel).

I forgot to include another reason for major price increases. Massive and wasteful spending on an unjustified war and irresponsible economic stimulus will now appear on spread sheets. The resulting dollar devaluation further increases oil prices because the world has long been awash in too many dollars. In a previous post, I noted how some countries were suffering increased inflation due to too many dollars in their economy.

But as Cheney said, "Reagan proves that deficits don't matter." The resulting economic punishment is no accident. After all, those money games typically take four to ten years to appear as economic harm.

Massive oil price increases when nothing tumultuous occurred in the world. What happens when something serious happens to disrupt supply?

Never forget lessons of the 1970s when America's political agendas and a lying president made America so internationally unpopular (including an attempt to subvert the Australian government), when American oil imports exceeded 50%, when American products (i.e. GM cars) were routinely stifling innovation and foolishly blaming environmental, et al, when America was spending wildly using economic stimulus to mask economic mismanagement in government. And then something tumultuous happened. What is different today? We are still waiting for that something tumultuous to happen.

About six month ago, I suggested that everyone get their financial affairs in order; prepare for a serious economic downturn. We will not see the damage created by high oil prices for many years. That is how economics works. Everyone should be wary even of an unnecessary war that we have not yet paid for.

Happy "Mission Accomplished" - now five years old and still to be paid for.

[xoxoxoBruce]

They left off the cost of petroleum based fertilizer.

[tw]

Originally Posted by xoxoxoBruce

They left off the cost of petroleum based fertilizer.

Those (ie the president) who deny oil prices are harming the economy also claim that this country is no longer as dependent on oil as it once was. Well, America almost never imported 50% of its oil until Nam. Those massive oil price increases causes little economic disruption for years. So again, we deny high oil prices will cause massive disruptions - still make vehicles so stupidly as to still have V-8 engines. The V-8 engine in any car is a benchmark in stupidity.

Just about everything is dependent on oil - even meat. So we have yet to see the real price increases. Let's see. Oil prices increased from $10 to $120 per barrel. Did your gas costs increase from $1.20 to $14.40 per gallon? Has your electric bill increased by a 10 factor? No. But parts that increase cost of energy have not yet been replaced, expanded, upgraded, or manufactured yet. Those numerous hidden costs, well, another example of spread sheets measuring the actual cost 4 to 10 years later.

Order everyone to replace their front lawns annually, and everyone will be richer - for a while. Four to ten years later, the resulting economic recession arrives when all those new lawns finally start to appear on spread sheets as no return on investment.

Largest SUV sales did not increase this quarter for the first time. IOW oil price is finally beginning to have some productive effects. Price finally has attacked the emotions of those who have been so in denial about as to threaten this nation's security, wealth, jobs, standard of living, etc. Those who kept saying make more crappy, inefficient and less safe products, blame the unions, blame foreigners, blame taxes, blame immigrants, blame all Muslims, blame myths about global warming, blame the French, etc are finally being hurt enough as to be forced to make intelligent decisions. Unfortunately their outright denial has been too long. Still, economic pain due to those denials is still to come. We have yet to see the many price increases and feel the pain made necessary due to higher oil prices.

Yes, higher fertilizer costs will be only one of so many punishments that have not yet appeared on economic spread sheets. Even true costs misguided ethanol production has yet to be felt.

[xoxoxoBruce]

I have a hybrid truck, I can put gas in it, or push it.