I will believe the Saudis don't see any upcoming problems with Ghawar when they cancel one of their projects due to low oil prices. If they continue to be full steam ahead with increasing their capacity then I think they are aware that Ghawar may not be as robust in 5 years time as they would like us to believe.
I don't claim to an expert on Canada but it could have some positive effects in the very short run - mainly because of the profits from using existing infrastructure built with cheap oil. Once the cost of building new homes, roads, cities, etc., is based upon $200 oil, it will become apparent that $200 oil will actually make things much worse for Canadians. _________________ It's already over, now it's just a matter of adjusting.
Posted: Sat Jul 05, 2008 1:32 am Post subject: Re: $200 /barrel oil will have positive effects on the econo
In a $200 oil world, a government who collects taxes from selling $200 oil, can easily afford to build roads at thos prices.
Being a producer of oil, does come with some advantages. _________________ capitalism *is* fun | crude oil price
Joined: Sep 29, 2004 Posts: 2330 Location: Pennsylvania, USA
Posted: Sat Jul 05, 2008 7:37 am Post subject: Re: $200 /barrel oil will have positive effects on the econo
The problem is that the article talks about early PO problems. What most people miss when they learn about PO is that it is an accelerating decline. As it progresses, every year we produce less than the year before. As time goes on, we produce significantly less than the previous year. If it were linear, we might be able to adjust to a linear decline, but I doubt even that. When you add market pricing forces to that, you get a price well beyond economic practicality. _________________ "That's the problem with mercy, kid... It just ain't professional" - Fast Eddie, The Color of Money
Joined: May 26, 2008 Posts: 1140 Location: Chicago, IL
Posted: Sun Jul 06, 2008 6:41 am Post subject: Re: $200 /barrel oil will have positive effects on the econo
Kingcoal wrote:
As [PO] progresses, every year we produce less than the year before...
...and consume more than the year before --if I may add.
The article does a good job at analyzing the upside of the near-term effects of PO; less commutes, less clutter, more exercise, etc. But if fails to attempt predicting the downside; lack of and/or highly-priced gasoline will not only affect the SUV owner driving 3 blocks for a "bag" of milk, but the distributor driving pick-ups across town, the wholeseller driving semi's across the provinces, the producers' employees driving to work, the doctors, utility workers, cops, etc, etc, watching after all these folks, etc.
Other than picking our noses, there is virtually nothing we do that do not involve some sort of oil, and for that matter, cheap oil.
Posted: Sun Jul 06, 2008 7:05 am Post subject: Re: $200 /barrel oil will have positive effects on the econo
VMarcHart wrote:
Other than picking our noses, there is virtually nothing we do that do not involve some sort of oil, and for that matter, cheap oil.
You eventually use some wiping material that is oil based. For the sake of mankind's oi supply, please stop doing that aswell _________________ capitalism *is* fun | crude oil price
Joined: Jun 15, 2007 Posts: 591 Location: St.Albert, AB
Posted: Sun Jul 06, 2008 12:50 pm Post subject: Re: $200 /barrel oil will have positive effects on the econo
Careful folks, the National Post is a VERY conservative newspaper in Canada. In fact, the Asper family owns CanWest News Service which in turn owns over 20 major newspapers in 20 major cities...including the National Post. Canada has even more media concision in terms of ownership than the United States or any other OECD country.
These folks tend to deliver a VERY right wing gospel across the country and it has REALLY changed Canada's political dynamics. For example, when the Pembina Institute delivers a new report on the environmental problems associated with the tar sands, CanWest will always make reference to the group as "the left leaning Pembina Institute has published" etc. This goes for all groups who tend to publish left leaning material. CanWest is not wrong in stating that they are left leaning, but they are wrong in creating a double standard. They will never unveil a report from the Fraser Institute as "the right leaning Fraser Institute has published..." etc. etc.
Newspapers NEVER mention the socialist-democratic party like they used to. They only mention the Liberals if they are found in poor circumstance and they always mention the Conservatives at every opportunity available. But these papers are not small town rags, these are the largest papers in the largest cities delivered to millions of Canadian homes every day.
In summation, beware of the Canadian media. Canada isn't the socialist haven that everyone thinks we are. In fact, our media and our own Prime Minister have aligned themselves in support of John MacCain. Our politicians also believe that Alberta can produce 5 million barrels of oil per day by 2020....suffice to say Canadians are VERY disengaged from reality at this point.
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