J. Warren Thomas here with more news from the front lines of Peak Oil . . .
Oil tops $70 again. [Read article] Our readers aren't surprised, nor are they buying the excuse of Iran news and Nigerian rebels as the full story. True, threats to the dwindling supplies are cause for concern and a reason for the prices rise. Yet, (here comes the news that the managed corporate news doesn't want to reveal) if the threatened supplies could be compensated for elsewhere through increased output, the petroleum needs would be met and prices increases would be less acute. The article states that prices are "more than 20 percent higher since mid-February." Why?
Quality oil cannot be found elsewhere in abundance.
The article does concede that Saudi Arabia has some spare capacity, but that the "spare capacity is heavy, sour and more difficult to process." That's about the extent of the discussion which might clue the public into the threat of Peak Oil. What does this mean for you and I on the home front? It's not good news.
Any time oil prices rise our transporatation costs increase. This means more money spent on commutes to work, the grocery store or even pricier public transportation. Also, recall that the production and tranporation costs of food will affect the lifestyle of consumers, as prices increase both as a result of higher oil prices and a devaluing Dollar.
We've spoken many times about the rise in interest rates. Couple the interest rate increases with price inflation, higher oil costs and a real estate mania which has almost satiated itself and you seeing an economy in peril.
Take care until next time.
posted by LiveWithoutLimits @ 6:32 PM
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