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Guest Post: Oil Price Could Doom Obama

Tyler Durden's picture




 

Submitted by Llewellyn King of OilPrice.com

Oil Price Could Doom Obama

Like death and taxes, the price of oil is always with us. And like
taxes, it may be President Barack Obama’s worst nightmare at election
time next year.

Among forecasters, there is a sharp division between those who see an
inexorable rise in the price of oil and those who believe it will
stabilize about where it is now.

The hawks see gasoline streaking ahead to $4-a-gallon this year and $5-a-gallon in 2012.

Others say demand will collapse and it won’t go that high. The Energy
Information Administration is very conservative in its forecasts and it
gives very high prices only a 10-percent chance of coming about.

Adding to the confusion is a nasty little spat between the
International Energy Agency in Paris and the Organization of Petroleum
Exporting Countries over price, inventory and what OPEC calls “technical
factors,” such as pipelines down for repair or the loss of the Deep
Water Horizon rig in the Gulf of Mexico last year. IEA is saying that
OPEC is keeping its production quotas low to jack up the price—currently
just over $90 a barrel and the highest grade Brent crude from the North
Sea as high as $99 a barrel—and it is endangering the global recovery
with its actions.

But OPEC Secretary General Abdalla Salem el-Badri has taken issue
with the IEA for roiling the markets with weak data and speculation.
“Supplying the world’s media with unrealistic assumptions and forecasts
will serve only to confuse matters and create unnecessary fear in the
markets,” he said.

OPEC, which drastically cut back its targets for production in 2008
with the collapse of the global economy, has, in fact, increased its
production by 2.3 million barrels a day while formally not changing its
declared targets. OPEC controls about 42 percent of the world’s oil
production.

What is certain is that world is slurping up more oil than ever. The
latest IEA prediction is that daily consumption is increasing and will
reach 89.1 million barrels a day as the recovery proceeds. Emerging
markets and China in particular are held responsible for the surge.

With the exception of two of the savants of the oil industry, the
legendary T. Boone Pickens and former Shell Oil Company chief John
Hofmeister, comment in the United States has been muted. When asked why
the price of oil was so high despite the recession, White House Press
Secretary Robert Gibbs brushed aside the question, recommending the
reporter ask the secretary of Energy, a physicist who has not spoken on
oil pricing.

Jack Gerard, president of the American Petroleum Institute, did not
offer an explanation when he was asked the same question at a meeting in
Washington.

The fact is that the price of oil is not determined only by simple
supply and demand but by complex premiums and market sensitivities. It
is a market that is roiled by wars and rumors of wars and, because oil
was the first truly globalized commodity, the premiums can have their
genesis far from the futures markets of New York and London.

Uncertainty in Russia, turmoil in Central Asia, the ongoing suspense
of Iran’s nuclear plans and even corrosion in the Trans Alaska Pipeline
System are cranked into the price. No wonder so many hedge funds are
involved in oil. Instability is mothers’ milk to hedge funds.

There are left-wing blogs that maintain that the price of oil and its
occasional spikes are created by elaborate speculative plays on the
futures markets in New York and London. The left is traditionally
paranoid about oil and oil companies, but who is to say they are not
right this time? The memory of Enron is still fresh.

One way or another, two things stand out: The chances are that the
summer driving season will put pressure on gasoline prices this year,
after an extremely cold winter all over the Northern Hemisphere. The
conservative (10-percent chance of happening) scenario by the Energy
Information Administration says $4-a-gallon gas would come at the end of
the summer.

The second reality is that the world thirst for oil has not been slaked; as the world prospers, the greater that thirst.

In 1974, the heads of 23 democracies lost their jobs because of surging energy prices. Obama, beware.

 

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Tue, 02/01/2011 - 20:41 | 925822 william the bastard
william the bastard's picture

We'd be at 36K w/o Obama

Tue, 02/01/2011 - 21:10 | 925894 financeguru500
financeguru500's picture

If we start running out of oil Obama will just ask Bernanke to print more oil. If that doesn't work well start a war on oil for bringing down our economy.

Tue, 02/01/2011 - 21:47 | 925978 TorchFire
TorchFire's picture

I'd pay $100 a gal for fuel if Obama and his puppetmasters would agree to retire to their fortress island.  More than a fair exchange.  A truly free market would solve the issue rather quickly in their absence.

Tue, 02/01/2011 - 22:59 | 926129 financeguru500
financeguru500's picture

Lol, that guy looks like he's rallying people to go eat at olivegarden. Who the hell riots in a button up shirt.

Tue, 02/01/2011 - 23:28 | 926189 flaunt
flaunt's picture

If you'd actually been following the protests, you'd know that the vast majority are not rioting, they are peaceful protestors demanding an end to a repressive regime.  But I suppose it's easy to be dismissive when you're thousands of miles away safe and sound.

Wed, 02/02/2011 - 01:01 | 926366 TruthInSunshine
TruthInSunshine's picture

Somewhat OT, but a whole lot of EPS misses today/tonight, and crude inventories building on weekly basis.

 

Wed, 02/02/2011 - 02:36 | 926492 Freddie
Freddie's picture

LOL!  Maybe he likes their salad and bread sticks.  The Ben Bernank's printing press has made bread stick pretty expensive in Egypt.

That picture was worth what?  I could get a tan or put on bronzer - stand in the street with some dude near me and make a fist.  Would that picture be worth....?

Wed, 02/02/2011 - 13:17 | 927815 RichardP
RichardP's picture

I have a shirt just like that one.

Wed, 02/02/2011 - 02:32 | 926486 Freddie
Freddie's picture

Amazing!  Some Obama boot licker junked your post.  What POS did it?  Hairy Wanker?   Bush may have sucked but the Kenyan with The Bernank are pure evil. 

Wed, 02/02/2011 - 08:50 | 926745 whatz that smell
whatz that smell's picture

headless democracies, bitchez!

Wed, 02/02/2011 - 03:23 | 926552 HungrySeagull
HungrySeagull's picture

I don't care how high the prices go as long we have sufficent net pay to commute to work.

 

We figure to stop driving totally at 12.40 a gallon. At that point we would quit the jobs and stay home for a long time.

Tue, 02/01/2011 - 23:59 | 926256 G-R-U-N-T
G-R-U-N-T's picture

Obama's already doomed!

Wed, 02/02/2011 - 02:10 | 926458 Oh regional Indian
Oh regional Indian's picture

There will be no election next year. There has been no election for a while now. Only selection.

"Mommy, why does the new president wear a green uniform? He has so many shiny medals. He must be very brave".

"Yes son, thank god we have such brave men to run the country for us."

ORI

http://aadivaahan.wordpress.com/2011/01/31/then-again-people-choose-yoga...

Tue, 02/01/2011 - 23:45 | 926230 Twindrives
Twindrives's picture

Obama doomed Obama.  The man is worthless unless your a TBTF banker.

Tue, 02/01/2011 - 20:43 | 925827 NewThor
NewThor's picture

Isn't Obama the turbo douche dumb dickhole that 

reappointed Bernanke? He shall go down as the Worst. 

President. Ever.

And I voted for the Son of a demon.

 

 

Tue, 02/01/2011 - 21:14 | 925904 louisash
louisash's picture

+1.  Ditto.

Tue, 02/01/2011 - 22:12 | 926024 OnTheFelt
OnTheFelt's picture

It's not that I don't agree with you contextually, but brother if you think it makes one bit of difference which puppet is being pulled by the strings then you got another thing coming.

Whether it's Obama, Bush, Clinton, or Shit<insert name>Head, business is business as usual: Eugenics, Globilization, Economic Destruction.

...And the same goes for Bernake as well, just a different puppet being pulled by a different string.

Tue, 02/01/2011 - 23:40 | 926212 Lord Koos
Lord Koos's picture

Correct, people just prefer to bash the ones they didn't vote for.

Wed, 02/02/2011 - 02:09 | 926457 TorchFire
TorchFire's picture

The problem is not Obama, except to the extent he was willing to be the whore of the elite.  The problem lies with the damn puppetmasters.  I don't give a damn who was "voted" for and that wasn't the point.  The wretched fucked up, criminal system must fall and then there can emerge an organic method to assemble it by reading the original instructions. My fear is that the bastard "string pullers" already have their next show ready to go on the road after the curtain closes on this one.

Wed, 02/02/2011 - 02:29 | 926484 Calmyourself
Calmyourself's picture

Lets just banish this bullshit here and now.  It does matter greatly who occupies that seat.  Yes, both parties are corrupt but one believes in a fairly gained profit and one for all intents and purposes does not.  If you cannot see the moral or operative difference you are intellectually lazy.  I do not remember any other president having his signature legislation kicked to the curb as unconstitutional?  Bueller, bueller, anybody?  The current dull tool occupying my house cannot even be bothered to release his college transcripts or one paper from his days as Harvard law Review president..  Why, because he is purely and simply an affirmative action fraud.

Wed, 02/02/2011 - 02:45 | 926508 TorchFire
TorchFire's picture

Well I still tilt towards the party you favor in a world of no choices, however I can't seem to digest this new definition of "fairly gained profit" that was launched by Bush and co. Don't let the tyranny of divide and conquer get lost as you ponder the validity of faith in one party over the other. You will likely end up with the conviction that there is something terribly wrong with this country. The people no longer have a voice. One side anesthetizes the reasonable into a coma, the other subsidizes and placates the lazy. 

Wed, 02/02/2011 - 03:01 | 926527 Calmyourself
Calmyourself's picture

That is all I am saying "tilt"  They are both corrupt, but the tilt is a small but important point.  Bush and co. launched fairly gained profit ?  I will have to study,I thought it was Adam Smith..   Next thing ya know GWB will have written the darn constitution, learn somthing new every day around here..

Wed, 02/02/2011 - 12:16 | 927538 TorchFire
TorchFire's picture

The comment about Bush and "fairly gained profit" was satirical.  GWB actually oncce disparaged the constitution by equating it with toilet paper in one of his brilliant remarks.  And I voted for the man...twice. Comparing him to Adam Smith? Hell no.  Bush was the facilitator for the avalanche of free money into the hands of the oppressors. TARP started this conflagration, or at least provided an explosive fuel to the flame. 

Now the inertia of their cumulative mistakes appears to be insurmountable...that is unless they simply get out of the way and let the people sort it all out.  Only under those circumstances would the proper structure assemble itself in sustainable fashion.

Wed, 02/02/2011 - 01:59 | 926434 Dash Riprock
Dash Riprock's picture

Well...people don't get what they expect. They get what they deserve. Congratulations!

Wed, 02/02/2011 - 08:22 | 926696 Confused
Confused's picture

I junked you. Not because you are wrong, but rather, because that statement is just silly. 

 

"They get what they deserve." Really?

Tue, 02/01/2011 - 20:48 | 925832 CrashisOptimistic
CrashisOptimistic's picture

It truly is astonishing, and becoming more so each day, that articles like this can be written without the slightest -- not even the slightest -- suggestion that oil production is what it is not because OPEC won't produce more, but because it *can't* produce more.

Why is that?  Why is this such an unthinkable thought?

And btw, how is it that the article postures itself as making some sort of prediction about super high prices and who gives 10% odds of it.

What in hell do they think $90/barrel is?

Tue, 02/01/2011 - 21:06 | 925886 Devout Republican
Devout Republican's picture

Instead of building islands of steel 200 HUNDRED miles off shore and drilling 1 mile into shifting salt sediment to get to oil thats down another 2 miles, why not just stick another straw in Texas and catch the oil directly into barrels? 

That would be cheaper wouldn't it? 

I can tell you why, because you dumb fucks used it all up!

You're all going to die.  Soon. Its all ready begun.  Mexico is next on the list.  They cross the Export Land Model predictions like now.

Between the high cost of commodities and income from oil drying up (pun intended) look for another failed state in the months to come.

Your next bitchez.

Tue, 02/01/2011 - 21:18 | 925918 Mad Max
Mad Max's picture

Well you two are quite a peppy pair!

Shame that you're both basically right.

Tue, 02/01/2011 - 22:06 | 926014 LowProfile
LowProfile's picture

It is unstated US policy to use up all other countries' resources first.

Watch:  As the dollar collapses, and people refuse to trade in dollars with us, new oil reserves will be 'discovered'...  And they will be in Texas.

Tue, 02/01/2011 - 22:25 | 926045 Mad Max
Mad Max's picture

Well that's an interesting claim.  Why is it then that we're producing all the coal we can, greatly decreasing the quality, and are producing such a short-term glut of natural gas that it's depressing the price?  US oil production peaked in 1970 and has declined greatly since.  You really think that all the administrations and congresses in the last 40 years would all willingly throttle our oil production so that we could say "surprise" sometime long after most of their people are dead from old age?  I got a bridge for sale, just east of Manhattan.

Wed, 02/02/2011 - 01:20 | 926392 OldTrooper
OldTrooper's picture

The puppet administrations and congresses do what they're told.

I'd put nothing past those pulling the strings.

Wed, 02/02/2011 - 02:39 | 926500 Freddie
Freddie's picture

Why do they keep grabbing land and saying it is federal lands or a fed park now?  Energy.  Illinois is not even a big coal state but they have more coal that could be truned into diesel than Saudi Arabia has oil.  It could be done at about $25 to 30 a barrel.  This is just one state.  Totally bankrupt IL could easily pay off all their debts with a modest taxes on that oil/diesel.

Wed, 02/02/2011 - 04:06 | 926577 LowProfile
LowProfile's picture

Ding ding ding...

Wed, 02/02/2011 - 07:32 | 926669 Tedster
Tedster's picture

In my more uncharitable moments even years ago I wondered if maybe the lock up of federal and state lands under the guise of protecting "the environment" (whose environment?) was a not so elaborate smoke screen - collateral, some kind of lease or outright sale, you get the idea.

IN aggregate, much of America's energy problems are entirely self inflicted.
Nuclear energy could have supplied most of the BASE LOAD requirement for the grid, that is now being produced by coal. How is that working out?

Not so well. No nuclear facilities have been built in over 30 YEARS.
WHAT is truly remarkable, a cabinet level position was created 30 YEARS ago - the department of energy - and presumably spent millions. What does the taxpayer have to show for it? I could go on, but you get the idea.

There is no "energy crisis" but we're plussed up on idiot obstructionist beauracrat control freaks.

Wed, 02/02/2011 - 06:50 | 926641 cossack55
cossack55's picture

We are producing and burning all the coal we can so the byproduct Mercury can be dissolved into the air and water, oh, and soil, in order to kill your stupid ass.  Drill, baby, f*ckin' drill.

Wed, 02/02/2011 - 08:28 | 926706 Confused
Confused's picture

Just a heads up, might not mean anything. Rothschild interest in Coal has apparently increased, similar to the way they got out of gold years before the crisis. 

 

http://www.ft.com/cms/s/2/3a8cd690-1ebd-11e0-a1d1-00144feab49a.html#axzz...

Wed, 02/02/2011 - 02:04 | 926442 trav7777
trav7777's picture

bullshit.

we were a net exporter till 1970 whereupon we "let" our economy essentially collapse in order to use up others' resources first?!?!

The price of oil is set by the amount of slack capacity in the production base.  OPEC has been flat out for years

Wed, 02/02/2011 - 04:04 | 926575 LowProfile
LowProfile's picture

Bullshit?  Just because we aren't pumping it out *right now* doesn't mean it's not in the ground!

http://www.stockhouse.com/Columnists/2010/Apr/20/Most-important-U-S--oil...

That's just the beginning.  Watch and wait, there will be more.

And then there's Canada...

http://nextbigfuture.com/2008/01/bakken-and-torquay-formations-saudi.html

Peak oil my ass.

Here, let me get you a washcloth so you can clean that shit off your face.

Wed, 02/02/2011 - 04:59 | 926595 EscapeKey
EscapeKey's picture

Oh FFS, more Bakken disinformation.

Educate yourself. Head over to the oil drum and see what people who work in the industry say about this - so far - completely insignificant source.

http://www.theoildrum.com/node/3868

http://en.wikipedia.org/wiki/Bakken_Formation

An April 2008 USGS report estimated the amount of technically recoverable oil within the Bakken Formation at 3.0 to 4.3 billion barrels (680,000,000 m3), with a mean of 3.65 billion.

Wed, 02/02/2011 - 05:27 | 926606 ronin12
ronin12's picture

Admittedly, I have not thoroughly researched peak oil theory, but my gut tells me it's BS.

People tend to underestimate the vastness of the Earth, and overestimate the impact of human beings on the Earth.

For a prime example, look at the global warming BS...

Wed, 02/02/2011 - 06:48 | 926640 AnAnonymous
AnAnonymous's picture

People tend to underestimate the vastness of the Earth, and overestimate the impact of human beings on the Earth.

 

The vastness of the Earth can be computed. No more uncharted waters, no more unmapped areas.

 

The 18th and 19th, when expansion in 'vacant' lands was so easy is over.

The probability that something like the North American continent is to be found is pretty low by now.

Wed, 02/02/2011 - 07:06 | 926650 EscapeKey
EscapeKey's picture

The mapping techniques (4D seismic) today are far superior to the ones employed 50 years ago, and yet we discover less oil.

Of course, there are the predictable opportunists (Lindsey Williams, etc) taking advantage of this to sell expensive bullshit "recordings of the elite speaking" to the naive.

Wed, 02/02/2011 - 07:18 | 926656 nmewn
nmewn's picture

"The vastness of the Earth can be computed. No more uncharted waters, no more unmapped areas."

And yet...scientists are "surprised" to discover previously unknown asphalt volcanoes only ten miles off the coast of Santa Barbara.

Just sayin.

Wed, 02/02/2011 - 07:23 | 926660 EscapeKey
EscapeKey's picture

If there is no commercial angle with regards to an asphalt volcano, why would anyone in the commercial sphere search for it?

Wed, 02/02/2011 - 19:08 | 929108 nmewn
nmewn's picture

My comment was to this;

"No more uncharted waters, no more unmapped areas."

They are always making new discoveries...therefore we have not mapped or charted everything or there wouldn't be discoveries.

Wed, 02/02/2011 - 10:45 | 927131 Calmyourself
Calmyourself's picture

Yeah, we are talking geological formations thousands of feet down in a 3d matrix.  But no more N. America's got it, thanks..

Wed, 02/02/2011 - 09:26 | 926837 trav7777
trav7777's picture

Quick question- are you a freaking idiot?

You haven't researched the topic yet you feel that you are justified stating an opinion about it?  From your "gut" no less?

LOL.

If Peak oil is BS, then oil production has no limit and will grow forever to infinity.  Tell your gut to STFU as I am telling you to.

Wed, 02/02/2011 - 09:24 | 926829 trav7777
trav7777's picture

it's absolutely useless to talk to you people, isn't it?

You haven't a mfin clue about oil production yet you constantly tout the SAME SHIT over and over again.

There isn't 14mbpd worth of production in either of those resources, not even 1.4mbpd.  I mean, the most important discovery in FORTY years and right there in the text, they say 40kbpd.  That's 40,000 bbl/day.  Do you even grasp how minute a resource that is?

And later in the article, this guy talks about production falling from 1991 onward and muses that maybe the US had reached peak oil.  He's fucking 21 years TOO LATE.  The US's production peaked in 1970.  This is a researchable, easily-confirmed FACT.

If your moron writer cannot even get THAT right, well then wtf?  HE doesn't believe the US peaked...it's just nonsense.

Listen, just for felonious crimes against the truth, you should STFU

Tue, 02/01/2011 - 22:17 | 926034 PeterSchump
PeterSchump's picture

And Obama is doing everything he can to save us.  Energy strategy/independence has been nothing but a talking point for every administration since Carter.  That DoE sure was worth it, wasn't it.  We have ourselves some real change in Washington too.

Tue, 02/01/2011 - 22:35 | 926067 Pegasus Muse
Pegasus Muse's picture

'Mexico is next on the list.'

That's ok.  Mexico already transitioned to its next major export business -- pharmaceuticals (pot, cocaine, meth, etc).  It helps keep our illiterate unemployed unskilled youth distracted from their miserable existence.

We in the US attempt to address the trade imbalance by selling our amigos to the south lots of small arms and ammo so they can work on their population control problem. 

It all balances out in the end.  Economically, Obummer demonstrated uncharacteristic business savvy by not funding the fense along the border.  Why impede all this free trade?

Wed, 02/02/2011 - 00:56 | 926350 snowball777
snowball777's picture

Guess again...there aren't enough youth to account for the ravenous demand for those products on this side of the border.

You want free trade? Legalize it and let those kids work on a farm for a piece of the crop.

Wed, 02/02/2011 - 01:51 | 926430 Cathartes Aura
Cathartes Aura's picture

pharmaceuticals (pot, cocaine, meth, etc)

ehrm, pharma's are the legal drugs the white coats prescribe to the majority of folk on medical benefits, you know, the stuff they advertise. . .

those other substances you listed, Big Pharma is on the other side of that trade.

Wed, 02/02/2011 - 02:20 | 926471 Oh regional Indian
Oh regional Indian's picture

+10 ml of sertraline hydrochloride

Right into your veins.

Doctor pushes Drugs.

Pusher pushes Drugs.

Spot on CA....

ORI

Wed, 02/02/2011 - 09:20 | 926815 pan-the-ist
pan-the-ist's picture

Indeed, it is called "health maintenance" for a reason.

Your doctor wants to find an any excuse he can to schedule an appointment for you every few months to keep the money rolling in.  A prescription that must be renewed to allegedly keep you alive is the holy grail.  Cha-Ching.

Wed, 02/02/2011 - 02:33 | 926488 Calmyourself
Calmyourself's picture

"We in the US attempt to address the trade imbalance by selling our amigos to the south lots of small arms and ammo so they can work on their population control problem." 

Any proof we are fueling the drug war with arms and weapons or just your feelings?  Obviously US money is there but the weapons specifically.

Wed, 02/02/2011 - 08:37 | 926719 Confused
Confused's picture

Don't know if they are funding it. Seems reasonable though, as they aren't really making much progress when considering time/money invested. Hasn't heroin use sky rocketed? Meth? I mean, things seem to be getting worse in that respect. 

 

Just saying. 

Wed, 02/02/2011 - 02:06 | 926449 trav7777
trav7777's picture

Canada is more than self-sufficient for energy, and Brazil still is too if you like a little better weather and some cultural and culinary verve

Wed, 02/02/2011 - 10:28 | 927044 naughtius maximus
naughtius maximus's picture

Don't forget the hot womenz!

Wed, 02/02/2011 - 02:23 | 926475 dogbreath
dogbreath's picture

who is a dumb fuck asshole.  who do you think your audience is.  when will you go away?

Wed, 02/02/2011 - 08:24 | 926700 Confused
Confused's picture

There are enough trolls around here. Please stop posting. Even better, leave.

Tue, 02/01/2011 - 22:14 | 926026 alien-IQ
alien-IQ's picture

What I find amazing is that the article never once so much as mentions the decline in value of the USD, which oil is priced in. How can this not be a factor? Is it mere coincidence that in July 2008 when the $DXY was @ 72 oil was at $147? Is it mere coincidence that in March of 2009 when the $DXY rose to nearly 90 oil fell to 33.55? And now that the $DXY is in a nose dive trajectory currently below 77 oil is nearing $100? Yet the fucking morons try to spin this as supply/demand/manipulation/whateverthfuck but avoid even addressing the most obvious answer: That the price of oil is rising because the value of the currency with which it is priced is collapsing? I'm no expert on this subject but it seem like simple fucking common sense.

Occams Razor: one should not increase, beyond what is necessary, the number of entities required to explain anything.

Tue, 02/01/2011 - 22:32 | 926070 Devout Republican
Devout Republican's picture

yes. thats part of it.  In fact its the other side of the same coin.

As oil became more expensive to extract the economy suffered.  As the economy suffered they injected more money. which made the price of oil AND commodities rise.  Rinse repeat.

You're all fucked.

I've seen this coming for years.  I have a doomstead.  You?

Tue, 02/01/2011 - 23:20 | 926169 creviceCaress
creviceCaress's picture

 

 

Har! doomstead.......full greenhouse underground?  5yr power supply?  primitive tech power/elctronic-free?  scrabble?  the full madmax/theroad theatre came come to you, i'll bet my left butterball that it wont.....or you'll die the same time as everyone else....in yer doombungalow

Wed, 02/02/2011 - 00:25 | 926299 EvlTheCat
EvlTheCat's picture

Glad that turned out to be a stationary bike.  I was thinking sheep, goat or cow with the way he was huffing and puffing at the beginning.

Wed, 02/02/2011 - 02:08 | 926456 trav7777
trav7777's picture

hope your doomstead can survive fire or A10 cannon

Wed, 02/02/2011 - 02:35 | 926491 dogbreath
dogbreath's picture

Trav buddy,  I genuinely appreciate your posts here but what will anyone do against the unleashing of the roid robots against unprepared civilians.  All that technology in the sky to create a terminator existance.  There are fates worse than death.

Wed, 02/02/2011 - 03:11 | 926539 trav7777
trav7777's picture

hell, I may light RNR's doomstead ablaze myself just for spite.  May not need the T101 for that.  Just some gasoline and a match.

To anyone who owns a doomstead and thinks themselves prep'd- did you invest in major firefighting equipment?

Maybe he meant he has an asbestos fridge box, so forget I said anything...

Wed, 02/02/2011 - 03:55 | 926571 dogbreath
dogbreath's picture

I'm dead anyway.  prepare the kids for whats coming so they don't sell their souls

Wed, 02/02/2011 - 02:40 | 926502 Calmyourself
Calmyourself's picture

No kidding, they are going to be using A10s on AMERICAN SOIL.. Next thing you know it will be legal to use willy pete in Iraq and the stan..

Tue, 02/01/2011 - 20:45 | 925835 SDRII
SDRII's picture

Under control:

Wisner (aka the wolf) has been dispatched...

http://en.wikipedia.org/wiki/Frank_G._Wisner

Wisner was until recently Vice Chairman of American International Group.

After retiring from government service in 1997, Wisner joined the board at a subsidiary of Enron, the former energy company. He is also on the board of Hakluyt & Company, a British corporate investigation firm.

Tue, 02/01/2011 - 20:49 | 925837 mynhair
mynhair's picture

And like taxes, President Barack Obama is my worst nightmare.

He doesn't know oil from his assaholla. Gas $4/gal by May.

Tue, 02/01/2011 - 21:41 | 925969 HarryWanger
HarryWanger's picture

If it hits $4/gal by May, it'll have no affect on the economy at that level. Consumers aren't affected until over $5/gal. I've been long oil for a bit but think we're pretty much topped out here. The only reason I'm holding is the situation in the Middle East. Otherwise, I'll sell when it looks to turn. That could have been today.

Tue, 02/01/2011 - 21:50 | 925986 johnnynaps
johnnynaps's picture

Consumers aren't affected by $4/gal oil? You obviously forgot 2008 already. Not to mention, our unemployment level is double now.

Tue, 02/01/2011 - 22:10 | 926021 LowProfile
LowProfile's picture

You mean this? http://bigpicture.typepad.com/comments/2008/06/chart-of-the-da.html

Interestingly, the Federal Highway Administration has no recent data.

Oh and Harry:  You're a fucking douchebag, and a piss poor troll.  Just stick to general, hard to pin down statements from now on like we pay you to, mmkay?

Tue, 02/01/2011 - 22:16 | 926032 HarryWanger
HarryWanger's picture

Here's why posts like yours are completely misleading. In 2008 gas prices rose precipitously. Whenever oil/gas rises rapidly the price isn't as important as the quickness of the rise. We're not seeing that now. What we're seeing is a steady, slow climb. That's completely different from 2008 when it spiked.

So you might want to read a little more about the effects of rising oil prices as related to velocity/rate of change before you try to make uneducated analogies with historical timeframes.

Tue, 02/01/2011 - 23:17 | 926159 Spalding_Smailes
Spalding_Smailes's picture

Harry,

 

The fucking snow is brutal in Chicago ... And a nice steady 50-60 mph wind.

Tue, 02/01/2011 - 23:20 | 926167 financeguru500
financeguru500's picture

Snow is good for the economy. And jobs too. Remember that.

Tue, 02/01/2011 - 23:29 | 926188 Spalding_Smailes
Spalding_Smailes's picture

So is pomo. Remember that.

Got NVDA  ? 

 

http://www.youtube.com/watch?v=mOq7acPdfnQ

Wed, 02/02/2011 - 00:56 | 926352 DoChenRollingBearing
DoChenRollingBearing's picture

Normally I do not much agree with the original HarryW, but here I think I do.  And HW, the real one, the one famous enough to attract IMPOSTERS ferchrissakes has a record of bullishness (far as I can tell) that HAS matched the rise of stocks to date from March 2009.

In 2008, we were all used to gasoline being in the $2s.  Then, whack!, it shot up to the $4s and helped bring on the recession (or make it worse).

We are now well into the $3s, and nobody says squat about gasoline prices now.  A slow rise up, of course being bad, MIGHT NOT shock us like in 2008.  I would agree that a breaking point would be reached, say, in the high $4s, certainly at $5.00 + per gallon.

Wed, 02/02/2011 - 02:47 | 926512 Freddie
Freddie's picture

Pre-Hussein, we had an economy and people with money would spend it.  Atlas shrugged Nov 2008 and people with money and businesses slowed or stopped spending.

$4 or 5 it almost does not matter because unemployment is +15% and food stamp recipients keep going up and up.

Wed, 02/02/2011 - 07:22 | 926658 grey7beard
grey7beard's picture

>> Pre-Hussein, we had an economy and people with money would spend it. 

 

One would think, by now, the number of partisan hacks would diminish, but it hasn't.  Things crashed under Bush.  You don't have to take my word for it, the facts are there for you.  Obama has continued the the course, with maybe a slight bump up on the throttle to give it his personal touch.  Saying this shit storm started under Obama is as ignorant as saying Obama has solved the problem.  For the good of us all, wake the fuck up.

Wed, 02/02/2011 - 01:01 | 926368 snowball777
snowball777's picture

No, dipshit.

Below the median income, it doesn't matter how quickly gas reaches > $4/gallon...it displaces other spending because people can't decide not to drive to work and there isn't anything they can do to "adjust to it" no matter how slow the ramp.

Take your garbage theories to the curb where they belong; you're stinkin' up the place.

Wed, 02/02/2011 - 02:45 | 926506 Calmyourself
Calmyourself's picture

Ahh snowball we pretty much agree... We should get a room; your catching..

Wed, 02/02/2011 - 08:39 | 926723 snowball777
snowball777's picture

Nah...I'm the root of all evil...I cause construction numbers to go down, close the CME, ... ;)

Wed, 02/02/2011 - 09:04 | 926771 Confused
Confused's picture

"it displaces other spending because people can't decide not to drive to work and there isn't anything they can do to "adjust to it" no matter how slow the ramp."

 

This is the key aspect that HW was leaving out. Sure consumption will vary, but its not like everyone will stop driving to work.

Tue, 02/01/2011 - 22:22 | 926040 alien-IQ
alien-IQ's picture

In Harry's world, all prices go up in perpetuity to the glee of the masses who are never affected by it since all are happily and gainfully employed. All the women are beautiful, all the children above average and all the men are hung like John Holmes.

In other words: Harry is a delusional fool.

Tue, 02/01/2011 - 23:25 | 926174 HarryWanqer
HarryWanqer's picture

Those who are unemployed are less affected by the high prices since they aren't driving to work.  Thus, high unemployment is good for higher oil.

Wed, 02/02/2011 - 02:45 | 926507 Bay of Pigs
Bay of Pigs's picture

That is fucking priceless. So the more unemployed is better for the economy?

Wed, 02/02/2011 - 06:52 | 926644 AnAnonymous
AnAnonymous's picture

Labour is a drain on resources. So yep, more unemployment in places where the general environment is expensive to operate is good for an economy working on dwindling resources.

Wed, 02/02/2011 - 09:27 | 926840 pan-the-ist
pan-the-ist's picture

sarcasm

It would be cheaper to put the poor into camps so that you could feed, clothe, and warm them more efficiently.

/sarcasm

Wed, 02/02/2011 - 21:30 | 929510 Marge N Call
Marge N Call's picture

I has Cheezburger.

Thu, 02/03/2011 - 13:33 | 931413 johnnynaps
johnnynaps's picture

You must study "new era" Keynesian thought! Hell, I'm under-employed and praying for $5/gal gas. At least it will rid the roads of teens and dinosaurs (most dangerous demographics), making it a lot more enjoyable to ride my motorcycle! 

Wed, 02/02/2011 - 02:41 | 926504 Calmyourself
Calmyourself's picture

Buy home decor with your gas money, yeah thats the ticket..

Tue, 02/01/2011 - 20:49 | 925842 Piranhanoia
Piranhanoia's picture

Is there anything with more strategic importance to a nation of addicts? Egypt will never starve, they can take payment in food for letting the oil move.

Wed, 02/02/2011 - 01:39 | 926422 bonin006
bonin006's picture

Egypt's oil exports went to zero in 2010.

http://5minforecast.agorafinancial.com/2-billion-up-in-flames/

Wed, 02/02/2011 - 10:30 | 927054 naughtius maximus
naughtius maximus's picture

Maybe they could pay in promises to deliver oil? Works pretty well in the silver market.

Tue, 02/01/2011 - 20:51 | 925847 weinerdog43
weinerdog43's picture

OOOooohh.  Left wing blogs.  Scary!

I'd like to take this opportunity to point out that many of us Liberals don't give a shit what happens to Barry Obama.  He's bought, sold and paid for by the banksters just like the other side.  If I remember correctly, there were not any food riots going on in 1974.  Given the choice between worried about being hungry vs. filling their SUV, Barry and every other so called leader better be worried about us proles.  It won't be just him.  Just ask his buddy Hosni Mubarek.

Tue, 02/01/2011 - 23:49 | 926234 Rusty Shorts
Rusty Shorts's picture

Back in 1974, most of Americas staple foods were grown domestically, or locally, or in the back yard.

Wed, 02/02/2011 - 00:31 | 926311 Lord Koos
Lord Koos's picture

LIBRUL = MUST JUNK

Wed, 02/02/2011 - 02:47 | 926511 Calmyourself
Calmyourself's picture

Let me fix that for ya:  Librul=unable to coherently think=junk

Wed, 02/02/2011 - 12:29 | 927609 weinerdog43
weinerdog43's picture

It must be hard to see the keyboard when your head is so far up your ass.

Wed, 02/02/2011 - 12:27 | 927600 weinerdog43
weinerdog43's picture

Back atcha Goober!  Have a junk too.

Wed, 02/02/2011 - 11:56 | 927443 SilverRhino
SilverRhino's picture

Bought, paid for and sold like the other side???
Dude, fuck off. Obama, Barney Frank, Pelosi, Dodd, Reid ....
You're whole side is too busy sucking bankster cock so take that left/right bullshit and shove it up your ass.

They (politicians) are ALL corrupted and tainted.

Wed, 02/02/2011 - 12:25 | 927583 weinerdog43
weinerdog43's picture

Well, I see the puss gobbling conservapukes have arrived. 

Tue, 02/01/2011 - 20:51 | 925850 Cheesy Bastard
Cheesy Bastard's picture

Obama loves high gas prices.

http://www.youtube.com/watch?v=t4Tmi_fpUHs

Tue, 02/01/2011 - 20:52 | 925853 Amabo Kcarab
Amabo Kcarab's picture

Don't worry, we could always buy a N**san Leaf.

Tue, 02/01/2011 - 21:05 | 925883 QQQBall
QQQBall's picture

Yea, Take a peak a the Cu market... Be calling that Nissan "Gold Leaf" if this keeps up.

 

Fraud was Barky's undoing. That CBO bit of Fiction should be titled "Let's Play Ostrich". You run some real numbers or even a moderately bad scenario and we are really d00med. AS pointed out on ZH before, Barky says double exports in 5 years - no way he gets the 14%+ annual growth w/o throwing Uncle Buck under the bus and his union base with it... Its not all his fault, but he I cannot think of one of the underlying problems that he has addressed and really he is just making it worse.The revs will be really low, the expenses/costs "shockingly high" and taxes and fees are going to go right off the charts. 

 

Barky is the earliest lame duck ever; however, he's so clueless that he does not even realize how despised he is.  I did not vote for him or McCain, but I did hold out some hope for change... This is the same shit, different admin. The more we hear "shared sacrafice", the greater the pain...

Wed, 02/02/2011 - 02:50 | 926516 Freddie
Freddie's picture

LOL!  I saw something that said electric cars do not work very well in cold weather.  Nice to know if you have one and it stops that you will probably freeze to death in it.

Tue, 02/01/2011 - 20:58 | 925864 Rainman
Rainman's picture

Grand revelation. You gotta be lib-progressive to believe the oil specs are rigging oil market pricing. Hallelujah.....I been saved !!

Tue, 02/01/2011 - 21:02 | 925875 Caviar Emptor
Caviar Emptor's picture

Brother can you spare a fossil?

Let's see: US total oil production peaked in 1970. Alaska pipeline delivery peak 1988. Every major producer globally has peaked. And now scattered reports of drilling attempts gone dry (Murphy Oil last week). 

The low-hanging fruit has been picked clean. Increasingly, all that remains is deep water offshore and hard to exploit onshore like tar, sands and shale. 

Brent and Tapis are at $110. And geopolitical turmoil threatens price stability. The cosy arrangements the US had with dictators might not stand up as well with Islamic democracies. China has been snapping up oil deals all over the world since 2009, especially in Canada, Brazil, Argentina, Iraq, Iran and Nigeria. China demand is estimated to rise 80% over 20 years. 

Oil is back on the front burner as the sensitive lifeblood of the global economy. At no other time has the competition been so fierce. And those that have oil realize that their precious national resource won't flow forever

Wed, 02/02/2011 - 01:01 | 926367 DoChenRollingBearing
DoChenRollingBearing's picture

Oil exporters might ask for their payments in gold...

Wed, 02/02/2011 - 02:26 | 926478 Oh regional Indian
Oh regional Indian's picture

But the big ones already do DCRB, that is the most fascinating thesis I got from Another. They just don't show it. And from there could spring the big gold shock.

ORI

Tue, 02/01/2011 - 21:03 | 925878 Pretorian
Pretorian's picture

It going to get nasty:

Muslim Brotherhood: ‘Prepare Egyptians for war with Israel'

http://www.jpost.com/Headlines/Article.aspx?id=206130

Tue, 02/01/2011 - 21:37 | 925961 Pants McPants
Pants McPants's picture

Oh noes!!  Won't somebody think of poor little Israel....

So pathetic.

Wed, 02/02/2011 - 10:55 | 927169 Calmyourself
Calmyourself's picture

Seriously??  Think of poor little Egypt, Israel will smash them flat without a friendly regime to keep the illiterate savages in check..  Pray the Israelis don't go medieval on their asses, they will not hold back this time and they may just want to give themselves some breathing room this time and keep all their men fight and die to capture..  Oh no, conquest by force..

Tue, 02/01/2011 - 22:39 | 926084 Idiot Savant
Idiot Savant's picture

Muslim Brotherhood: ‘Prepare Egyptians for war with Israel'

Don't fearmonger and take things out of context.

Wed, 02/02/2011 - 09:04 | 926772 Husk-Erzulie
Husk-Erzulie's picture

Jerusalem Post = fear mongering rag.  I have seen alot of people posting this link but so far no other news organizations are following up and if I recall from the article the quote is weakly or not attributed at all i.e. probably made up....Coupla days old now as well.

Tue, 02/01/2011 - 21:08 | 925891 no cnbc cretin
no cnbc cretin's picture

Gas at the pump would be $6 if not for subsidy's.

Nonetheless, global conventional Peak Oil is here, and the world will soon be toast, including America because of it.

Tue, 02/01/2011 - 21:38 | 925958 Dick Buttkiss
Dick Buttkiss's picture

The late Milton Copulos was a veteran of the Heritage Foundation, an advisor to both President Ronald Reagan’s White House and the CIA, as well as the head of the right-wing National Defense Council Foundation. He was particularly concerned with dependence on foreign oil, and he highlighted how oil imports were both an economic boon to unsavory governments abroad and a missed opportunity for domestic investment. In 2006, Copulos argued that, if you add to oil-related defense spending such factors as the economic impact of periodic oil supply disruptions and the opportunity costs of money spent on oil imports that might have been used elsewhere in the economy, the "hidden" costs of the U.S. dependence on petroleum would total up to $825 billion per year. 

"To put the figure in further perspective," he wrote, "it is equivalent to adding $8.35 to the price of a gallon of gasoline refined from Persian Gulf oil." At today's rates, that would hike the price at the pump to approximately $11 per gallon, or more than $250 to fill the tank of a typical SUV. 

http://www.cbsnews.com/stories/2010/08/12/opinion/main6767046.shtml

Tue, 02/01/2011 - 22:00 | 926004 Cheesy Bastard
Cheesy Bastard's picture

 "it is equivalent to adding $8.35 to the price of a gallon of gasoline refined from Persian Gulf oil."

Alaskan, Bakken, and Califorina coast oil would mitigate that considerably.

Tue, 02/01/2011 - 22:44 | 926095 Idiot Savant
Idiot Savant's picture

Alaskan, Bakken, and Califorina coast oil would mitigate that considerably.

Or, we could drive fuel efficient vehicles and reduce the speed limit back to 55 mph.

Silly me, this is America and everyone is entitled waste as much as they damn well please. Drill baby, drill!

Tue, 02/01/2011 - 23:00 | 926133 Cheesy Bastard
Cheesy Bastard's picture

Sorry, my wife and four kids don't fit in a smart car.  It would be negligent to put them in that unsafe peice of crap anyway.   It's a 9 seat pre government motors 8 cylinder Tahoe for me.  You can take my suv when you pry the steering wheel from my cold, dead hands.  It is still America.  You can drive a moped if you want.

Tue, 02/01/2011 - 23:14 | 926151 financeguru500
financeguru500's picture

Your response is the typical Walmart response when it comes to this situation. Rather than have any sort of care, your response is "Damn everyone else, I've gotta get my family around."

Well I'm calling BS on you. Every single person who uses this blog can agree when you are driving around how many people do you usually see in most private transport vehicles? 1. Sometimes 2. But about 95% of passenger vehicles on the road are carrying single drivers.

Consider that if you drive a fuel efficient vehicle or a moped your not only saving yourself on fuel costs but you are also lowering the overall consumption of oil. It's not what you as an individual do, but what we as a society do that impacts the world.

Your callous attitude is the god damned downfall of our society. Your generation who during the 80's did nothing to stop the U.S. companies from exporting jobs overseas. Keep driving your SUV. I hope you enjoy the $10 a gallon gas coming soon.

Tue, 02/01/2011 - 23:22 | 926173 Cheesy Bastard
Cheesy Bastard's picture

Actually, I do have to get may family around.  I care about them.  You people are the ones trying to stick your noses in everyone else's business.  I will not drive a fuel efficient vehicle or moped because you say I have to, it will not save the world, and increased fuel costs are an insurance policy against driving less safe crappy lighter less reliable vehicles.  Oh, and during snow storms many people with SUV's volunteer to bring folks such as dialysis patients to the hospital when thier geo metros are stuck in the driveway, and they have no other means to get there.  By the way, just for you, I used my remote starter to run my vehicle the whole time while typing this.  Maybe it will make things warmer. 

 

Tue, 02/01/2011 - 23:33 | 926202 financeguru500
financeguru500's picture

I completely support the notion of having a full size vehicle for when times come to transport the family around. But this bullshit entitlement that people like you have will be the downfall of our society.

It's sad but true. You know it. I know it. Everyone else knows it. Our whole f-ing country was built with urban sprawl having suburbs and other ridiculous community plans. WHEN gas prices go up, the first people who will feel it will be you. Though you won't ever admit fault. You might blame the bankers or the government officials. You might even trade your SUV in during cash 4 clunkers round 2. But the fact of the matter is, it will happen and you will be having to make decisions on how to take care of your family and transport them @ 15 miles per gallon.

Tue, 02/01/2011 - 23:41 | 926217 Cheesy Bastard
Cheesy Bastard's picture

Freedom is an entitlement.  I see with your urban sprawl comment you now want to tell me where to live as well as what to drive.  No.  By the way, I will not feel it when gas goes up.  You do not know how much I drive.  I might even use less gas than you.  Or, I might have plenty of money to buy all the gas I want.  Rest assued, I will only trade my SUV for a bigger one.  Even if gas goes to $20.  I am not unfriendly, though, I will beep and wave when I see you on your moped. 

Tue, 02/01/2011 - 23:56 | 926247 financeguru500
financeguru500's picture

Living with consideration of other human beings in the world is the only thing that we have going for ourselves.

Consider the current economic crisis. We are over $14 trillion in debt and have around 20% unemployment. We are in this situation because the baby boomer generation allowed all of our manufacturing companies to outsource job and manufacturing during the 80's and 90's. Everyone thought it was a great idea as it let our economy have exponential growth during that time.

Now consider if people were to have said "maybe this isn't the right thing to do. Maybe those people in other countries are working under harsh conditions for miniscule wage and it is not right for me to benefit from this".

But nope, thats not how a free economy works. You are entitled to your television made from some poor guy who can barely feed his family.The end result is that it will turn around on you because when the U.S. tries to fix its unemployment situation and bring manufacturing back, it will have to be at wages which compete with countries such as China so that other countries will want to buy U.S. goods over Chinese goods.

That's right, your right to freedom and benefitting from others will come back at you, or if not in your generation then your kids will find themselves working for meager wages just to feed their families. Think about that for a minute.

We are a free nation. We have a lot of freedoms which others in the world do not have. But that doesn't mean we should live ignorantly or take advantage of others.

When 1 person uses 10 gallons of fuel a day "transporting" their family around in a city in which they could have used 5 gallons with a better fuel efficient vehicle, it doesn't matter. When 100 million people are doing the same thing, it starts to have an impact. But it's your freedom to choose how many resources you use. And don't even fucking claim you might use less fuel with your SUV than I do with my moped. I drove 80 miles last week on my moped and used up less than a gallon of gas. I highly doubt you used less than a gallon of gas last week.

Wed, 02/02/2011 - 00:02 | 926265 Cheesy Bastard
Cheesy Bastard's picture

Living with consideration of other human beings in the world is the only thing that we have going for ourselves.

Perhaps, then, you will be considerate enough to allow me to choose where to live and what to drive.  I will extend the same consideration to you.  Wow, you are right, that worked great.   BEEP BEEP!

Wed, 02/02/2011 - 00:29 | 926308 Idiot Savant
Idiot Savant's picture

Guess what Cheesy; no one gives a fuck what you drive! What some of us care about, is your request to drill in ever more places to support your cheap oil habit.

It's not a matter of if, but when another oil spill will occur. We still don't know the effects of the GOM oil spill, and you selfish fucks want to drill in the few pristine places we have left. I no longer eat shrimp because of the oil spill and all the Corexit that was dumped in the Gulf. Not to mention how many family's lives have been ruined because of the GOM leak! How many families did YOUR family ruin because of your unwillingness to drive a fuel-efficient vehicle?

So, in sum, you can drive whatever the fuck you want, but quit crying when a gallon of fuel costs four dollars!

Wed, 02/02/2011 - 02:11 | 926459 Cheesy Bastard
Cheesy Bastard's picture

Agreed, I will drive what I want.  The only ones crying are you meddlers.

Wed, 02/02/2011 - 08:51 | 926747 snowball777
snowball777's picture

Cue picture of hapless dumbass forking over $100 to fill his P.O.S this summer weeping and gnashing teeth.

You won't mind if I spew some benzene into your yard, right? I'm entitled to my 'freedoms' after all.

If you really gave a shit about your kids, you wouldn't be driving them around anyway (cue picture of SUV with shitty center of gravity tango uniform in a ditch).

Wed, 02/02/2011 - 09:17 | 926808 Husk-Erzulie
Husk-Erzulie's picture

I thoroughly and whole heartedly UNJUNK thee Cheesy.  Excellent defense of personal  freedom sir in the face of the blathering majority who still just don't get it.  Freedom means accepting others actions, lifestyle, religion, speech, etc etc, even when you don't agree.  You think you understand freedom until it comes the temptation to legislate your outlook and impose it others because you fervently believe that they just don't "get it".  Well, as Michael Suede (hi Mike) would say Fucking Praise Mao because you just don't get it your own self.

Wed, 02/02/2011 - 10:42 | 927118 snowball777
snowball777's picture

Apply your logic to Afghanistan, please.

Wed, 02/02/2011 - 01:44 | 926426 redarrow
redarrow's picture

The idea of caring for others is something that does not appeal to many here. Sad as it is, you can find a lot of people who are like that. It never bothers them to stuff their stomachs full of food when sitting across a family which has no money to eat. It is how insensitive we have become as a society today. At the upper levels it is headed by Bernake who by his money printing is sucking the resources of the world for less. The same goes when you have a nation illegally occupying another nation for its oil, using the fig leaf of bringing democracy. Just see the duplicitous nature, we are all for it until the people of Egypt asked the puppet Mubarak to go. Now suddenly, we have a problem supporting the new power structure whatever that may be.

Wed, 02/02/2011 - 02:49 | 926514 Bay of Pigs
Bay of Pigs's picture

Not caring? Bullshit, you're way off...

Tue, 02/01/2011 - 23:35 | 926209 living on the edge
living on the edge's picture

By the way, just for you, I used my remote starter to run my vehicle the whole time while typing this.

Now that's funny. What's funnier is the 2-trillion bbls of oil in the Green River Basin, sitting untouched on mostly federal land.

Tue, 02/01/2011 - 23:43 | 926224 Cheesy Bastard
Cheesy Bastard's picture

+1.  Good one.  Glad to see someone else who is not wringing their hands with worry. 

Wed, 02/02/2011 - 00:01 | 926263 Rusty Shorts
Rusty Shorts's picture

hahaha, there is a gigantic problem with that oil in Green River Basin.

Wed, 02/02/2011 - 00:46 | 926332 Mad Max
Mad Max's picture

SSsssshhhh, don't spoil the surprise!

Oh, wait, flakmeister already has.

Yeah, (tee hehee) 2 trillion barrels of oil, yup, I get yer oil right here waiting for you...

Wed, 02/02/2011 - 00:42 | 926327 Flakmeister
Flakmeister's picture

It aint fucking oil, it is kerogen, the geologic precusor to oil. It has the same energy density as a baked potato....And nobody has figured out what to do with it.

Wed, 02/02/2011 - 00:50 | 926340 Mad Max
Mad Max's picture

I've figured out what to do with it.... leave it where it fucking is.  It's just another rock, and about as valuable as most other rocks.  Negative EROEI to try and produce oil from it.  It would probably be easy to produce with a cheap, clean nuclear reactor... but if you had that, why on earth would you bother boiling the goop out of a rock to make mixed hydrocarbons?

Wed, 02/02/2011 - 00:53 | 926342 Flakmeister
Flakmeister's picture

  That was cute...very cute    

/hattip

Wed, 02/02/2011 - 01:36 | 926421 CrashisOptimistic
CrashisOptimistic's picture

The quality of understanding of "the oil problem" has elevated a ton on ZH.

And no, the next sentence is not some BS about how enlightenment will change anything at all.  Rather, it means smart people who do some preparation may be among the billion or so who survive what's coming, rather than some random jungle dwellers whose kids will die of malaria a few months after birth.

Wed, 02/02/2011 - 02:27 | 926480 trav7777
trav7777's picture

Smart people are going to have to do an absolute assload of killing and they are going to have to go BNW on the future.  If you're one of the smart, you are going to have to embrace everything you were taught was wrong, eugenics, anti-diversity, basically racism, totalitarianism, and a host of other things if you conclude that the end of the oil age is the end of energy growth.  If fusion is around the corner, then you can hunker down for 10, 20, 30 years

You say the quality of understanding has gone up; I disagree.  The same BS is being said over and over again by a new crop of idiots.  The same old enlightened few are here.

Wed, 02/02/2011 - 10:35 | 926900 Mad Max
Mad Max's picture

"The same old enlightened few are here."

Sigh, yes.  It seems like the quantity of people who think that being alive gives them the magical ability to invent "facts" and defend those facts as true, when they are clearly fabricated and usually false, is on the rise.  With peak oil I wonder if many people simply cannot psychologically manage the idea that the whole existing paradigm could change - not even end, just change.  Too many people have their whole concept of self wrapped up with "their car" or some other emblem of constant oil use.

Wed, 02/02/2011 - 10:51 | 927157 Flakmeister
Flakmeister's picture

Bingo...

Wed, 02/02/2011 - 13:28 | 927825 DaveyJones
DaveyJones's picture

it is a game of poor odds and the numbers have been pre-printed

max is right, it's a psychological thing. Hell, that's probably the justification for our fearless (ironic) leaders. We can't "handle the truth," so let's just push on as normal and try to invade / undermine the places that have some of the stuff left. Such a stupid, destructive, ineffective strategy. 

Wed, 02/02/2011 - 21:33 | 929517 Marge N Call
Marge N Call's picture

I could not have said it better. You are still an ass though ;-)

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