[Rhodes22-list] Is the price of oil just another "bubble"? (political)

[Brad Haslett]

Mike,

This is economics 101.  I believe that "Peak Oil" is real but by "Peak" I
mean cheap and easy oil.  Lift costs (like Brazil's big find and ours in the
Gulf) are becoming  more costly.  We won't run out of oil, just "cheap"
oil.  Look, the economy ran fine on horses when that was all we had.  What
causes displacements in the economy is not the price of oil but the rate in
increase in the cost of 'cheap and easy' crude.  We'll be fine in the long
run, and dead according to most economists.

As I posted a week or so ago, the largest oil company in the US is
Exxon/Mobil and they are number 14 in the world.  Taxing US oil companies
out of business is obviously not the solution.  They are facing huge
problems, not the least of which is finding personnel since all the good oil
people are near retirement and the last "bust" in the oil patch discouraged
the 'best and brightest' from entering the field.

There is no "magic bullet" in the energy equation but for the short term,
the countries that hold the largest reserves are the same countries that are
most hostile to Western ways.  One would think that Arab nations with a
precious commodity would be on the leading edge of growth but no, 6 million
Jooooooo's in an area smaller than New England are holding them back.  How
stupid is that?

What Lance Armstrong said about cycling applies to economics as well - "pain
may last for a day, a week, or a year, but the pain of quitting lasts
forever!"

America was never about cheap oil, land, or government services.  Freedom
baby, that's the future!

Brad



On Fri, Jun 6, 2008 at 12:26 PM, Michael D. Weisner <mweisner at ebsmed.com>
wrote:

> I came across this article today.  It is one of the few that does not paint
> the "doom and gloom" image of the US as a third world country that can no
> longer afford to purchase oil.  I find this perspective refreshing ... now,
> the question is, "Is there any validity to it?"
>
> Why oil prices will tank
>
> http://money.cnn.com/2008/06/06/news/economy/tully_oil_bust.fortune/index.htm
>
>
> Mike
> s/v Shanghai'd Summer ('81)
> Nissequogue River, NY
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