[energyhoggin]

The last time oil was at 147 the Dow was around 14k, so does this mean if the Dow goes back up to 14k oil will go up to 147 or higher? The Dow is around 9200 at the time i wrote this and oil is at 71 usd per barrel. The last time the Dow was at this level was in 2003 and oil was much cheaper at 35 usd a barrel. I know the value of the dollar and so on have a lot to do with it but what I'm wondering is if the Dow regains its strength will the price of oil skyrocket to record highs again causing the price of gasoline to go back up to 4 usd a gallon again?

[Plantagenet]

The DOW and the price of oil do not move in lockstep.

In general, a higher DOW signals more economic activity which probably means more oil consumption which probably means a higher oil price.

[Voice_du_More]

probably is a good answer. I think the production numbers over at the oil drum suggest depletion has marched on significantly since 2003 so the upward pressure of ecnomic recovery should be more acute. I cannot be sure but with some expectation of recovery I expect $85 by labor day. Now you can see that $3 was enough in the early summer to slow things down and it did not take $100 oil to get there. So that is the picture, oil is more scarce and will forever be more scarce I expect a pretty sharp upturn into the fall and another world altering super-spike in the spring some time. The first spike in '08 was like a dagger in the back to the US economy, the next one will be a stake through the heart. The 'new economy' in the US will be built without job recovery and this will sow the seeds for the unrest to come. We are like those who come upon a crash site only to confirm that there are bodies. Before we arrived we hoped we might perhaps find survivors. Oil is a psychological Schroedinger's Cat. Once we look at it honestly we have to admit that the world built upon it is crumbling before our eyes, the cat is dead. Now that does not mean there are not money making opportunities left to those who are aware, certianly someone is going to get rich off of oil in the next year, and maybe they will be able to buy a nice little place in New Zealand or the Swiss Alps or something, but overall it is as bad as you think and much worse. Wish I had better news for you but the good news is as always only really to be found in Jesus Christ.

God bless.

[bodigami]

probably is a good answer. I think the production numbers over at the oil drum suggest depletion has marched on significantly since 2003 so the upward pressure of ecnomic recovery should be more acute. I cannot be sure but with some expectation of recovery I expect $85 by labor day. Now you can see that $3 was enough in the early summer to slow things down and it did not take $100 oil to get there. So that is the picture, oil is more scarce and will forever be more scarce I expect a pretty sharp upturn into the fall and another world altering super-spike in the spring some time. The first spike in '08 was like a dagger in the back to the US economy, the next one will be a stake through the heart. The 'new economy' in the US will be built without job recovery and this will sow the seeds for the unrest to come. We are like those who come upon a crash site only to confirm that there are bodies. Before we arrived we hoped we might perhaps find survivors. Oil is a psychological Schroedinger's Cat. Once we look at it honestly we have to admit that the world built upon it is crumbling before our eyes, the cat is dead. Now that does not mean there are not money making opportunities left to those who are aware, certianly someone is going to get rich off of oil in the next year, and maybe they will be able to buy a nice little place in New Zealand or the Swiss Alps or something, but overall it is as bad as you think and much worse. (...)

I am the Schroedinger's Cat... although it is more like a Pantera. Post-Industrial is the name of the new paradigm.

[Buggy]

Great post. One can't help but wonder if his antithesis is even now walking among us.

probably is a good answer. I think the production numbers over at the oil drum suggest depletion has marched on significantly since 2003 so the upward pressure of ecnomic recovery should be more acute. I cannot be sure but with some expectation of recovery I expect $85 by labor day. Now you can see that $3 was enough in the early summer to slow things down and it did not take $100 oil to get there. So that is the picture, oil is more scarce and will forever be more scarce I expect a pretty sharp upturn into the fall and another world altering super-spike in the spring some time. The first spike in '08 was like a dagger in the back to the US economy, the next one will be a stake through the heart. The 'new economy' in the US will be built without job recovery and this will sow the seeds for the unrest to come. We are like those who come upon a crash site only to confirm that there are bodies. Before we arrived we hoped we might perhaps find survivors. Oil is a psychological Schroedinger's Cat. Once we look at it honestly we have to admit that the world built upon it is crumbling before our eyes, the cat is dead. Now that does not mean there are not money making opportunities left to those who are aware, certianly someone is going to get rich off of oil in the next year, and maybe they will be able to buy a nice little place in New Zealand or the Swiss Alps or something, but overall it is as bad as you think and much worse. Wish I had better news for you but the good news is as always only really to be found in Jesus Christ.

God bless.