[syrac818]

I mean, can we just get down to it in it's most basic form? OIl is below $50! Unreal...

So you guys backing up the truck, or think we still have room to drop?

[Novus]

Lets just put it this way. The oil companies will be the next ones asking for a bailout. You can put money on that.

[ki11ercane]

I mean, can we just get down to it in it's most basic form? OIl is below $50! Unreal...

So you guys backing up the truck, or think we still have room to drop?

I am all for oil continuing to drop. It literally adds decades onto the impending energy crisis. Our economy will recover, but not in 12-18 months like the pundits predict. Estimate 5-10 years easy. Enough time for me to prepare, get out of the city, get into the country, and have my homestead ready for my legacy, which is my daughter and possibly grandkids. To be honest, this is an investment in time as well as money.

However, if you think that if oil goes back to $10.00 a barrel gas is going to go back to 89 cents a gallon or 40 cents a litre here in Canada, not going to happen. You can't uncook that egg, and those days are over. And if that happens, it's because demand is so low because there is 25% unemployment and we're in a Depression. A Long Emergency yes, but of a different kind.

Don't buy oil, buy preps, short and long term. Get your stead in order for the future. Stay on course for the now.

[Pops]

I mean, can we just get down to it in it's most basic form?

This forum is not my bailiwick but my basic form is to get out of the Pinstripe Casino and the oil based economy altogether.

What are you up to?

[cipi604]

I am all for oil continuing to drop. It literally adds decades onto the impending energy crisis.

No investments => less oil
With less oil you'll have an unbelievable energy crisis , if you compare with a 'more expensive but plenty of it around' scenario.

[ki11ercane]

I am all for oil continuing to drop. It literally adds decades onto the impending energy crisis.

No investments => less oil
With less oil you'll have an unbelievable energy crisis , if you compare with a 'more expensive but plenty of it around' scenario.

No investments means no one is spending money to make the investments possible. If the economy is not spending money, the value of the product continues to nosedive because no one is buying it. You get more demand restruction and the price continues to drop until the price hits a level people can afford to pay. If that's a penny below zero, oh well.

Or, there will be no money to buy it no matter the price. I have said this about a dozen times before here. It won't matter if oil is $1.00 or $1000.00 a barrel. If no one has the $$$ to buy it, it won't matter, however market indicators will dictate the price based on that scenario to make the value "low" rather than "high" even if people cannot buy it.

Gas, tools, land, anything that can suffer deflation by oil prices directly or indirectly will be cheaper to buy because there will be less buyers for it. While the inevitible is coming, it will come later. People who were smart, saved as much as they could, and are in a positition to prep will prep for a bargain. When things go higher again, they will be in good shape.

[TreeFarmer]

I wonder how this is going to effect Obama's windfall profits tax on the oil companies? I bet he goes through with it.

Tony

[AirlinePilot]

No investments means no one is spending money to make the investments possible. If the economy is not spending money, the value of the product continues to nosedive because no one is buying it. You get more demand restruction and the price continues to drop until the price hits a level people can afford to pay. If that's a penny below zero, oh well.

Or, there will be no money to buy it no matter the price. I have said this about a dozen times before here. It won't matter if oil is $1.00 or $1000.00 a barrel. If no one has the $$$ to buy it, it won't matter, however market indicators will dictate the price based on that scenario to make the value "low" rather than "high" even if people cannot buy it.

Gas, tools, land, anything that can suffer deflation by oil prices directly or indirectly will be cheaper to buy because there will be less buyers for it. While the inevitible is coming, it will come later. People who were smart, saved as much as they could, and are in a positition to prep will prep for a bargain. When things go higher again, they will be in good shape.

Economic theory would be wonderful if it worked like its supposed to in books. I agree with the premise, but what your not factoring in to your lesson is the dollar collapsing over night, or Saudi Arabia, Mexico, Nigeria, Venezuela,etc. starting another embargo because they need the higher price.

That or maybe demand doesn't decline faster than production does due to the complete lack of anyone's ability to come up with the required capital to produce. Don't say it cant happen. My guess is we are going to get a front row seat.

[Rogozhin]

The guilty train, like a criminal on the run, raced through dark and empty stations, unannounced by the telegraph, leaving a wake of fear and uncertainty behind it. But in the end the strike would catch up with the train, stop the engine, immobilize the driver, let off the steam.

[ki11ercane]

No investments means no one is spending money to make the investments possible. If the economy is not spending money, the value of the product continues to nosedive because no one is buying it. You get more demand restruction and the price continues to drop until the price hits a level people can afford to pay. If that's a penny below zero, oh well.

Or, there will be no money to buy it no matter the price. I have said this about a dozen times before here. It won't matter if oil is $1.00 or $1000.00 a barrel. If no one has the $$$ to buy it, it won't matter, however market indicators will dictate the price based on that scenario to make the value "low" rather than "high" even if people cannot buy it.

Gas, tools, land, anything that can suffer deflation by oil prices directly or indirectly will be cheaper to buy because there will be less buyers for it. While the inevitible is coming, it will come later. People who were smart, saved as much as they could, and are in a positition to prep will prep for a bargain. When things go higher again, they will be in good shape.

Economic theory would be wonderful if it worked like its supposed to in books. I agree with the premise, but what your not factoring in to your lesson is the dollar collapsing over night, or Saudi Arabia, Mexico, Nigeria, Venezuela,etc. starting another embargo because they need the higher price.

That or maybe demand doesn't decline faster than production does due to the complete lack of anyone's ability to come up with the required capital to produce. Don't say it cant happen. My guess is we are going to get a front row seat.

I am not a economist so I am probably talking out of my ass. Being a business owner is my only Teacher here in regards to economics.

I think for Saudi Arabia, Mexico, Nigeria, Venezuela, etc. as long as there is someone who needs their oil, and they are desperate to sell it to stay alive, feed their people, spackle gold nuggets on their palaces, etc., they will sell it to whomever can give them whatever "dollar" has value at that time. Or, if they can afford "not" to sell it and hold onto it until things somehow get "better" again, they will.

If I was thinking of my own business as an example, if I had an oil well pumping, and I have to sell it's content to eat, keep the lights on, etc., and I was within a economic collapse and maybe I'll only get 30% of it's value vs. say getting 100% of it 12 months ago, if I have to sell it at 30% value, I will. All those countries listed above will find some sort of currency to sell it in and sell it to whomever can pay a whatever cost the market will bear in order to stay alive. Unfortunately none of the countries listed has a contingency plan for economic collapse or Peak Oil so when things get bad for the world they will be dragged down to. Norway and maybe Canada if we get our act together will be about the only ones.

Go $10.00 oil!

[PrairieMule]

I think for Saudi Arabia, Mexico, Nigeria, Venezuela, etc. as long as there is someone who needs their oil, and they are desperate to sell it to stay alive, feed their people, spackle gold nuggets on their palaces, etc., they will sell it to whomever can give them whatever "dollar" has value at that time. Or, if they can afford "not" to sell it and hold onto it until things somehow get "better" again, they will.

Funny you mentioned Nigeria. It's a completley different animal than Saudi Arabia, Mexico, or Venezuela.

They are at half production capacity which is keeping about 1 to 1.25 million barrels a day of light sweet off the market. Why would they keep that much light sweet off the market when oil topped $140 a barrel? Nobody in Nigeria got ahead last year, not the corrupt officials, the generals, the oil companies or any Nigerians in general while everyone else cashed in. While the corruption and greed is rampant down there that's not why production is down.

It's centuries of tribal chaos and instability.

It's MEND rebels and villagers cracking pipelines then kidnapping oil workers when they go out and fix them. It's natives firing RPG's at each other because one tribe went fishing in another tribes waters. I know this first hand because my dad was a engineer who got shook down daily in Port Harcourt with a automatic rifle poked in his ribs for 10 years. It's 100 million people crammed into a country the smaller than Texas.
It's a nation of hunter gathers trying to interact with the 21st century.