There is a major move afoot to put oil back in the box... $20 to $30 oil is being pimped by the main stream media. This AM I was flabergasted at the New York Pimp stating that oil was headed for 20 to 40 bucks... Why?
Well it apears the US has modified its fleat of 160 million vechicals to more fuel efficent ones and more alternate fuel and hybred one's.. I wonder where those vechicals came from considering that every auto manufacturer in the world has posted fewer vechicls sold.... The electric car and hydrogen car is still in development stage, and hybrid premium price is no longer being accepted by consumers. Toyoto anounced recently that their Tundra sales were actually up in the US.
In light of this, this bozo stated that the US fleat had been modified.... Must have been a wet dream for him...
Low oil prices are poisen for global production sustainability.... The oil price decline will also reduce the ability of the Obama plan to succeed.
I think there is a focus on the OIL price decine to take down other countries stability to creat the illusion that things in the US are just as stable as the rest of the world... The drowning swimer syndrome is stil in effect, this bolsters the US currency. Thus artifically holding down commodity prices subsidized by weak currencies in the producing nations.... Canada, the largest oil provider to the US a case in point!
The focus of media on demand destruction and price destruction is going to lead to the bigest increase ever seen in commodity prices soon. China and India with about 40% of the worlds people will drive their own economies from within. Just as the US did after WWII becoming the worlds largest consumer, these 2 will dominate the next decade. If the US does not change their focus, they are doomed to becoming only a bit player within a very different world. TRhis focus on pushing oil prices down will poisen their ability to buld out a less oil dependant country.... thus it is self destructive to have the price of oil too low.
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Global oil supply will peak in 2020, says energy agency
Global oil production will peak much earlier than expected amid a collapse in petroleum investment due to the credit crunch, one of the world's foremost experts has revealed.
Fatih Birol, chief economist to the International Energy Agency, told the Guardian that conventional crude output could plateau in 2020, a development that was "not good news" for a world still heavily dependent on petroleum.
The prediction came as oil companies from Saudi Arabia to Canada cut their capital expenditure on new projects in response to a fall in oil prices, moves that will further reduce supply in future.
Birol's comments will give more ammunition to those who warn that the British government is dangerously complacent in not trying to wean the country off oil as quickly as possible. Some observers believe that, because the global economy is underpinned by oil, the peaking of supply will cause severe economic, social and political disruption unless prepared for over many years.
John Hemming, chairman of the All Party Parliamentary Group on Peak Oil and Gas, said Birol's "conversion" was significant. "The penny has finally dropped - geological issues matter as well as political and economic. The IEA - unlike our government - appears to be leaving cloud cuckoo land finally," he added.
The IEA has never before been specific about the point at which so-called conventional oil would peak. It said last month that total crude output could peak in 2030. Birol's comments follow other signs that the IEA is rapidly changing its view. In its 2007 World Energy Outlook, the IEA predicted a rate of decline from the world's existing oil fields at 3.7%, only to admit 12 months later that the speed of the fall was more likely 6.7%.
Jeremy Leggett, chief executive of solar energy company Solarcentury, said Birol's views underplayed the scale of the problem. "The IEA is very constrained in what it can say - by the demands of its constituent governments - so you have to read between the lines. We believe that peak oil will come about in 2013 at the latest but the real concern from the IEA is the adjustment of production figures," he said.
The energy agency, which represents most western governments including the UK and US, has been backtracking rapidly on previous positions.
Three years ago the Paris-based organisation still denied there was any fundamental threat to the world's petroleum economy.
