Can YOU survive $100 per barrel of oil? - GoFuckYourself.com

$5 submissions · 08-16-2005, 04:13 PM

http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_Columnist Article&c=MGArticle&cid=1031784454222&path=!opinio n!article&s=1037645509163

More likely than not... YES!

Excerpt:

This is not like the two "oil shocks" of the 1970s, when a sudden constriction in the oil supply drove the price sky-high. This price peak is driven mainly by rapidly rising demand in the emerging Asian economies and in the United States, so their people are still spending and the impact on the global economy is much less.

Moreover, the big oil producers now have much more developed economies than in the '70s, so they are also able to spend their extra income and keep the wheels turning. And developed economies are much less "oil-intensive" nowadays - it takes only half as much oil as it did in the '70s to produce the same amount of Gross Domestic Product - so oil price increases no longer lead to runaway inflation.

The important thing is that the median oil price for the next half-decade, say (until we run out of all the $40 oil), will be in the mid-$40s. That is good news in terms of the real crisis, climate change. That's high enough to encourage energy conservation and drive people toward alternative, preferably noncarbon energy sources, but it doesn't paralyze the economy. We will need more pressure from a higher price later on if we are to avoid a global climate disaster, but the economy can respond only so fast.

bllott · 08-16-2005, 04:14 PM

Quote:

Originally Posted by $5 submissions

http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_Columnist Article&c=MGArticle&cid=1031784454222&path=!opinio n!article&s=1037645509163

More likely than not... YES!

Excerpt:

This is not like the two "oil shocks" of the 1970s, when a sudden constriction in the oil supply drove the price sky-high. This price peak is driven mainly by rapidly rising demand in the emerging Asian economies and in the United States, so their people are still spending and the impact on the global economy is much less.

Moreover, the big oil producers now have much more developed economies than in the '70s, so they are also able to spend their extra income and keep the wheels turning. And developed economies are much less "oil-intensive" nowadays - it takes only half as much oil as it did in the '70s to produce the same amount of Gross Domestic Product - so oil price increases no longer lead to runaway inflation.

The important thing is that the median oil price for the next half-decade, say (until we run out of all the $40 oil), will be in the mid-$40s. That is good news in terms of the real crisis, climate change. That's high enough to encourage energy conservation and drive people toward alternative, preferably noncarbon energy sources, but it doesn't paralyze the economy. We will need more pressure from a higher price later on if we are to avoid a global climate disaster, but the economy can respond only so fast.

well, everytime i've been fueling up lately i've been getting heart burn, so the higher the price goes, the more heart burn i'll get

$5 submissions · 08-16-2005, 04:17 PM

Another way to look at it is -- the high prices are SUBSIDIZING the development of cheaper/cleaner/more efficient energy sources by making them more attractive. Once we have an ECONOMY OF SCALE for these alternative energy sources, their prices will drop. Assuming fossil fuel prices remain high, this trend towards alternative energy may become irreversible. And perhaps, the world maybe better for it. Or maybe not. We'd just have to see. Regardless, the environmental/political impact of high fossil fuel prices/dependency is quite evident.

chowda · 08-16-2005, 04:22 PM

we are dependant on oil for more than just fueling up cars.

cars will change for sure.. as prices goes up, demand for alternate goes up. r&d goes up,

but others like parafin and other bi-products of oil will be hard to substitute

tristan_D · 08-16-2005, 04:44 PM

in Singapore they have encouraged the use of bicycles to conserve gas, but then again that's a very small country and traveling is very easy.

08-16-2005, 04:13 PM	#1
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	Can YOU survive $100 per barrel of oil? http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_Columnist Article&c=MGArticle&cid=1031784454222&path=!opinio n!article&s=1037645509163 More likely than not... YES! Excerpt: This is not like the two "oil shocks" of the 1970s, when a sudden constriction in the oil supply drove the price sky-high. This price peak is driven mainly by rapidly rising demand in the emerging Asian economies and in the United States, so their people are still spending and the impact on the global economy is much less. Moreover, the big oil producers now have much more developed economies than in the '70s, so they are also able to spend their extra income and keep the wheels turning. And developed economies are much less "oil-intensive" nowadays - it takes only half as much oil as it did in the '70s to produce the same amount of Gross Domestic Product - so oil price increases no longer lead to runaway inflation. The important thing is that the median oil price for the next half-decade, say (until we run out of all the $40 oil), will be in the mid-$40s. That is good news in terms of the real crisis, climate change. That's high enough to encourage energy conservation and drive people toward alternative, preferably noncarbon energy sources, but it doesn't paralyze the economy. We will need more pressure from a higher price later on if we are to avoid a global climate disaster, but the economy can respond only so fast. __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

08-16-2005, 04:17 PM	#3
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	Another way to look at it is -- the high prices are SUBSIDIZING the development of cheaper/cleaner/more efficient energy sources by making them more attractive. Once we have an ECONOMY OF SCALE for these alternative energy sources, their prices will drop. Assuming fossil fuel prices remain high, this trend towards alternative energy may become irreversible. And perhaps, the world maybe better for it. Or maybe not. We'd just have to see. Regardless, the environmental/political impact of high fossil fuel prices/dependency is quite evident. __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

08-16-2005, 04:22 PM	#4
chowda Confirmed User Join Date: Jun 2003 Location: Gooch city Posts: 9,527	we are dependant on oil for more than just fueling up cars. cars will change for sure.. as prices goes up, demand for alternate goes up. r&d goes up, but others like parafin and other bi-products of oil will be hard to substitute __________________ Someone finds you... 2007 PS: Nationalnet is the best host I've ever had. And i tried alot of them.

08-16-2005, 04:44 PM	#5
tristan_D Confirmed User Join Date: Jul 2005 Posts: 7,865	in Singapore they have encouraged the use of bicycles to conserve gas, but then again that's a very small country and traveling is very easy. __________________ Increase your sales. Up to $4 per click.