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Re: Peek Oil Alert!
There is a lot of belt-tightening in the Petroleum Industry which would then lead to less exploration, developmental and expansion work.
This will eventually translate to less production in the future as the ever continuing production decline takes its toll on the overall production.
I would even guess that that is the overall strategy in the industry !!! -
Re: Peek Oil Alert!
From the article, Tanaka of the IEA:
"But when the economy starts growing, recovery comes again in 2010 and then onward, we may have another serious supply crunch if capital investment is not coming."
THERE IS NO WAY, the economy will start growing in 2010. It might stop imploding. Oil will be a problem, but currently the economic collapse is the big thing. If the collapse itself does not create supply problems, the oil shortages are some years off in my opinion. Of course much depends on the acceleration of the depletion rate - we do not know how bad that will be. New projects will not go ahead in this environment, that is true, but economies will shrink 10s of percents worldwide in the next few years.Comment
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Re: Peek Oil Alert!
U.S. oil falls 7 percent to below $35 on demand, economy
Tue Feb 17, 2009 1:37pm EST
NEW YORK (Reuters) - U.S. oil prices fell more than 7 percent to below $35 a barrel on Tuesday as grim economic indicators battered markets and raised concerns about slumping demand.
A new report suggesting eastern Europe's economic slump will drag Western banks further into the red fanned fears that emerging economies will deepen the recession in the West.
No. 3 oil consumer Japan has suffered a sharper contraction than other major economies because of its heavy dependence on exports combined with persistently soft domestic demand.
U.S. crude for March delivery fell to $34.82 a barrel by 12:52 p.m. EST, down $2.69 from Friday's close. Floor trade on the New York Mercantile Exchange was shut on Monday for the President's Day holiday, although there was electronic trade.
London Brent crude for April delivery dropped $1.93 to $41.35 a barrel.
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Russia signed its biggest energy deal with China on Tuesday, under which its oil companies will receive $25 billion in loans in exchange for long-term crude supplies, a source close to the talks told Reuters.
So China is buying cheap oil and commodities on the marketComment
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Re: Peek Oil Alert!
OK boys and girls is it time to back the truck and load up with oil?
The chineese seem to think so. I heard somewhere thatthey are working on a deal with rio-tinto too.
I bought DBC at 20, thinking I was getting close to the bottom, now I'm down to 18.50. down 7.5% ouch.Comment
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Re: Peek Oil Alert!
I think it is way too early to load up on oil. If you do so, do without leverage and expect to wait possibly long years before a rebound.
The Chinese have to load up millions of barrels of strategic reverse for the long haul. It is quite different.
Follow the numbers here:
http://www.jodidata.org/
There will be plenty of opportunity to jump in on the oil ride up later.Comment
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