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Who will solve the oil puzzle?
 
Speculation apart, demand-supply fundamentals don't support lower prices of crude oil from the present levels. This means that the nation should find an alternative to heavily subsidising the fuel prices that would lead to large budgetary deficits. Read News
Total Comments : 3  Post Comment
Andy
Great article, I hope you post an update when oil goes through $200 next year (just my guess)
Posted On : Jul 24, 2008 7:45 PM
James Lewis
I agree with you Clifford. Good story and good comments.
Posted On : Jul 24, 2008 6:20 PM
Voh
Yes it is an interesting thought. Nobody can really solve the global oil puzzle. Oil will remain to be on fire because of the politics behind oil.
Posted On : Jul 24, 2008 6:48 PM
Clifford J. Wirth
It will be very difficult to solve the oil puzzle for these reasons: According to energy investment banker Matthew Simmons, global oil production is now declining, from 85 million barrels per day to 60 million barrels per day by 2015. During the same time demand will increase 14%. This is like a 45% drop in 7 years. No one can reverse this trend, nor can we conserve our way out of this catastrophe. Because the demand for oil is so high, it will always be higher than production; thus the depletion rate will continue until all recoverable oil is extracted. Alternatives will not even begin to fill the gap. And most alternatives yield electric power, but we need liquid fuels for tractors/combines, 18 wheel trucks, trains, ships, and mining equipment. We are facing the collapse of the highways that depend on diesel trucks for maintenance of bridges, cleaning culverts to avoid road washouts, snow plowing, roadbed and surface repair. When the highways fail, so will the power grid, as highways carry the parts, transformers, steel for pylons, and high tension cables, all from far away. With the highways out, there will be no food coming in from "outside," and without the power grid virtually nothing works, including home heating, pumping of gasoline and diesel, airports, communications, and automated systems. This is documented in a free 48 page report that can be downloaded, website posted, distributed, and emailed: http://www.peakoilassociates.com/POAnalysis.html I used to live in NH, but moved to a safer place. Anyone interested in relocating to a nice, pretty, sustainable area, good climate with much rain and good soil?
Posted On : Jul 24, 2008 5:40 PM
Marx K
Nice comment
Posted On : Jul 24, 2008 6:26 PM
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