Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Joined: Apr 16, 2008 Posts: 40 Location: New Zealand
Posted: Tue Apr 22, 2008 10:34 pm Post subject: PEAK OIL extra bad fo Kiwis
NZ petrol prices are currently just under $2 a litre, the US kiwi exchange rate has been sitting at about 80 cents for several months, NZ interest rates remain sky high, but US rates have dropped markedly. The only thing holding the petrol price under $2 is the high exchange rate, but even with high interest rates the NZ dollar hasn't made any ground. With the reserve bank act in place and inevitable inflation increases, the only way for interest rates to go is up, at the expense of home owners and exporters, if they drop, the the exchange rate will plummet, and this will push petrol prices into the $3 - $5 range.
All our big earners rely heavily on energy, ie tourism relies on cheap airfares, and agriculture relies heavily on energy during production and to market. Top it off with a very poor public transport and dominance of trucks for transport of everything.
Might be time to head for the bush. _________________ "I'm here to fight for truth, and justice, and the American way" - Superman
Moped
Joined: Aug 03, 2006 Posts: 3897 Location: Graceland
Posted: Tue Apr 22, 2008 11:34 pm Post subject: Re: PEAK OIL extra bad fo Kiwis
You guys are crazy.
Enjoy life down there.
There are a lot worse places to be. _________________ Our window of opportunity is slowly closing...at the same time, it probably requires a spiral of adversity. In other words, things have to get worse before they can get better.
-M. King Hubbert, 1983
Posted: Wed Apr 23, 2008 7:29 am Post subject: Re: PEAK OIL extra bad fo Kiwis
plus you guys got 9Z - or is it 7Z - i forget the way
the fish scientists classified it.
a 9 meter long great white shark, seen at NZ
surf breaks & beaches about 5 years ago. _________________ http://www.LASIK-FLAP.com/ ~ Health Warning about LASIK Eye Surgery
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