Surviving Peak Oil, Preparations, and Relocation: From The Oil Drum: Peak Oil in 2008
Dr. Wirth says:
"Within a year, it is likely that oil prices will skyrocket as supply falls below demand. OPEC cuts would exacerbate the gap between supply and demand and drive prices higher."
I am a little less convinced of anything regarding directions in oil prices given that the global economy has stagnated and commodity prices have collapsed. If anything happens, my guess is skyrocketing oil prices would be connected to hyperinflation of the dollar because of huge outlays by government and the federal reserve.
I don't think there will be a recovery of demand in the oil market in 2009, because so many parts of the economy that were expanding their consumption of oil have collapsed.
IMO, oil production my have hit its high water mark over the summer, but there is a lot of play in the market right now on the demand side of the equation that wasn't apparent 6-9 months ago.
we are still screwed though, no doubt about that.
-mike
the doom letter
Tuesday, December 23, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment