World will face oil crunch ‘in five years
I wouldent expect OpEC to ever give a positive long term outlook on the price of oil. Think about if you held the key to the worlds most inelastic good what would be the best way to continue to raise the price.... you control supply. All you have to do now is justify why supplys are tight. Dont put too much weight to dismal supply reports given by people that have Billions to gain from it.
At the end of the day we have enough oil to last over 120 years at our current growth rate. and we havent even tapped the world output potential.
IMO oil gas are still very low, 1 gallon of gas still costs less than a 1 gallon of milk, and the process of obtaining that gas ( R&D,Drilling,Shipping,Refining,Distribution) is much more complex and costly than that of milk.
Would you really stop driving tomorrow if gas shot to 10$ a gallon ? mabye if you worked for min wage, but then the employers would have to start paying more to get employees to come to work. and there you have trickle down economics at play.
The big threat to oil companies is techonology. Techonology is advancing at a much faster rate than oil supply is diminishing. The most advanced cars now only use gas at 25% of its potential and thats with the help of electricity. this is what will eventually set the cap on oil prices.
Actually, I am getting kinda bored with all the warnings and pointings at the Hubbard`s curve and all.... I mean, what the heck, suddenly uranium will go up, next solar panels and all the hi-tech stuff...
Petro Currency (GBP) will going higher and higher from now on
Why do you think so?
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