I'd LOVE to see $200/bbl oil. Perhaps THEN the US Government would pull its head out of its ass and develop natural gas as a transportation fuel. We have a 100% of need, 100 year supply of the stuff... yet we don't use it. Instead, we send $700 Billion/year to OPEC producers... some of which HATE OUR GUTS AND WOULD LIKE NOTHING MORE THAN TO KILL US ALL... yet, we persist on the same destructive path. Why is that??
So would I. It seems every time it gets up high though, fear of alternative fuels drives it right back down. Clear signs of developing shortages and rising extraction costs of crude will be the day for nat gas. Xto and Chesapeak are drilling like madmen for it in this location. Hence, the price.
Some of those predictions have already happened (like Arab revolt spreading) so they are not really predictions. If by Arab nations he meant "oil producing Arab nations" than those 2 statements are contradictory. If my major export product is the new currency and I still have a lot in the ground, why would I go poor???
Good point. His basic thesis is that all this uprising in the ME is staged by bigger powers to cause the chaos. The point of the Arab nations being betrayed is that "allegedly" we made deals with them way back when that we would buy their oil if they would buy our fed notes. Thus, when the USD disappears...all paper wealth is gone. They still have crude, but the US will be self-sufficient enough to not buy any more. Basically, we used up a lot of their crude over the years...the money (in USD) they got, they put back into the US via fed notes and then those will be worthless. Something along those lines. We sucked up a majority of their crude and will default as well. Thus, the analogy that the Arab nations will be back to riding camels...Lol.
Why do we import more oil from Canada and Mexico if we have the deal with the Arabs. Wouldn't we buy more from them so they could buy more of our debt.
Help me understand this: paper wealth is exactly that - paper. Losing paper doesn't put anyone back to camels, does it? They have the one thing a developing global infrastructure needs so even if the USA never bought any more oil they are guaranteed riches. And if the US doesn't offer to repay its debts it will not be trading with anyone, ever. So it's not a game they lose, for if the USA defaults the big loser is the US. My expectation is a basket of currencies will make up the new SDR's issued by the IMF backed by 10 world regions. That seems to be the plan. My one sure prediction is trouble will spread in the ME and there will be war with Israel. I also predict a big increase in big earthquakes set off by solar activity.
There are lots of factual and logical problems with his reasoning: 1. The US gets 1/3 of its crude from other countries, but only 1/6 of that is coming from the Gulf. http://www.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_a.htm 1/6 of the 1/3 is 1/18, so about 5% of the US crude usage comes from the Gulf, hardly a signifficant part. 2. The US will never be self-sufficient of oil products. Period... Well, unless we go the Amish way... 3. Even if the US stops buying oil from the Gulf, there will be plenty of other countries who will... 4. Opening up the Rockies won't solve anything because: a/ The rate of production is going to be slow to help us out. b/ There is not enough water there for the production.
Am I the only one who is bothered by the fact that this guy's voice sounds exactly like Rush Limbaugh, is he Rush's antimatter?
Very good points and agree I suggest to listen to the broadcast, maybe I wasn't listening too well (was doing other things while it was playing).