Now paying the most we ever have for a gallon/litre of gas.
Excellent chartage and ht to WTRG Economics.
39 Replies to “Oil Now at All Time Historical and Inflationary Adjusted High”
To me that chart is the obvious picture of a bubble about to burst.
I know…. “this time it’s different”.
But history shows that usually this time it’s not different.
Remember when Japan was going to take over the entire world with its vast economic power? Or the “Dow 20,000” projections. etc.
time to tax , and tax and carbon tax some more.
“dat is not fair” Borat Dion.
dis tax will be fair but new distribution
da burden will be to da drivers. people dat live hin rural areas will pay more, dos dirty Halbertans will pay more. dos pipples in sas cat chewon will pay more, pipple dat live hin cold places will pay more. but pipple dat har in trono hand montreal will pay less. dat pipples dat traditionally vote liberal will pay less and dos dat vote torie (spit) will pay more. how can dat be not fair.
There must be someone out there who is following a clue lead that will (a hunch) eventually end up at a serious effort to topple Capitalism and the West. And, damn is that effort moving a breakneck speed!
Hmmmm, US election year?
hint: Soros, Strong, Chavez.
The word bubble is frequently over used when it comes to the commodities market.
How to spot a bubble. The price continues to rise while at the same time supply is increasing and demand is falling. In the oil market there is a bit of speculative froth and the price could pull back if the speculators decide to get out but the overall supply/demand picture at this point does not look good for lower prices longer term. Although the current high prices are having some effect on eroding demand the depletion rates of producing fields is falling even faster (less supply too). The supply/demand equation in oil means that longer term we are probably looking at $200.00 to $250.00 per barrel oil.
Old coot about town Dick Smyth did a segment on AM 640 Toronto where he opined high gas prices could be the work of the Russian mafia.
Which, I guess, is an improvement over his previous “Bush, like Hitler …” segment.
The age of cheap oil is past. The age of oil shale, tar sand and deep sea drilling is upon us.
The world’s supply did not diminish by a factor of 5, nor did the world’s demand increase by that much in the last 5 years, nor the ratio of one to the other. I know it’s not a linear relationship obviously, but still, this type of a spike is not rational.
And demand has many causes. World wide recessions caused by excessive fuel prices would be one cause of a reduction in demand.
I remember when every stock advisor in the world was telling us that the demand for internet and networking bandwidth was going to grow exponentially, and that Nortel was going to be seeing 200$ a share in a year or less.
I’ve made my bets with my investment portfolio. I got out of commodities and out of the TSX index fund a couple of weeks ago. I’ll await what I regard as the inevitable drop. If I’m wrong, you can tease me about it.
dat pipples dat traditionally vote liberal will pay less and dos dat vote torie (spit) will pay more. how can dat be not fair.
Ha, good one cal2!
Great chart.
At least no politician would be so gormless as to propose a fuel tax right now.
Hey Bart – we’ve got Mr Gormless himself out here in BC. He’s masquerading as the Premier.
dat pipples dat traditionally vote liberal will pay less
Certainly the case with childless latte slurpers in large urban centres.
But for example, in manufacturing, transportation, and vote rich Ontario, Dion’s proposal will be as popular as wasps at a picnic. It would be another blow central Canada’s factories could ill afford.
What is strongly evident throughout Dion’s speech is that no one has looked at the effect of this carbon tax on Canada’s competitiveness. Even Coyne hasn’t looked at this yet. Applied at the wholesale level, Canada’s industries will have a $40/tonne tax burden without such costs on any of their competitors. Remember, we are still an exporting nation, deriving most of our income through selling goods and services to other nations, unlike the US with its huge internal economy in which exports and imports are a small proportion of its total economy.
Coupled with a high Canadian dollar, this carbon tax is all too likely to bring on a collapse in the Canadian export sector.
Well, politicians like Dion and other liberals sure do have a sense of timing.
Too bad for them it’s all bad.
Remember when the Kyoto Kultists first started to claim that .10 a litre was the panacea which would solve all the world’s carbon problem? Remember what the price of a litre of gas was at that point? Around $0.60. So now we’re paying more than double that but not only do the green retards not think the problem solved, they still think the same $0.10 a litre tax will do the same good that $0.75 a litre in increased price didn’t do. What kind of stupid do you have to be to believe that? Even Joe Clark can count better than that and he’s the idiot who miscounted Trudea back into office.
You have the Liberal premiers of Ont and Que talking “cap and trade” which is politico speak for gouge and fleece. You have the fed liberal Dion and the BC liberal going the carbon tax rout.
If Harper doesn’t win a majority Canada deserves what it gets.
DickMorris.com has some interesting stats on the run up in oil futures since 2003. Say from 13 billion dollars to 260 billion. Talk about “cap and trade”!
For those who want a different prespective I suggest reading BLACK GOLD STRANGEHOLD by Jerome Corsi and Craig Smith. The part about abiotic carbon fuel theory is intriguing. The rest of the book about the politics of oil is fluff. And for those enviromentalist who think oil is so bad remember this; if it wasn’t for crude oil production all the whales would be extinct and all the forests would be memories
Consider also that oil-based fuels were used as alternatives to much dirtier-burning wood and coal.
Due to its molecular structure, oil and natural gas are much better for the environment than either wood or coal were.
Much of this run-up is due to trading in oil futures … you can get exchange traded funds and bet on whether the price of oil goes up or goes down. So far, traders are betting it’s going up, but that does not reflect the supply/demand balance.
Therefore, oil prices are in a bubble that’s about to burst.
PS. The price of oil is NOT set by politicians or oil companies.
The Iraqi gov’t has happily just opened up it’s huge oil fields to Exxon, BP, Total (Fwance ?), ect – production may some day rival Saudi Arabia’s. Shorts beware !!
Signifigant up surge could come in 6 months. Iraqi’s may soon enjoy the good life also.
Neither would not have happened without the toppling of Saddam. By who ??
For 20 years, between ’47 & ‘67, when gold was fixed at $35/oz, oil was approximately $3/bl. An ounce of gold bought 11.7 barrels of oil. Near the end of 2007 when gold (at a market determined price) was around $750/oz oil was $64/bl. An ounce of gold bought 11.7 barrels of oil.
The value of commodities have not changed all that much over the years. The value of currencies have, big time.
Depreciation of the US $ is responsible for the price of oil. When the Fed decided to run the presses, businesses and speculators knew the price of commodities would rise. They dumped their USD holdings in favour of things that would hold their value.
Maybe they’ve overvalued commodities now or maybe they are right in expecting these prices to stick, considering the politics in the US & all dimwitted stuff the greenie-wiennies are pushing these days.
Remember the Oil Income Trusts?
Remember how with the change in Tax status the trusts were supposed to TANK?
Well now…. since the original nose dive the trusts took most have recovered a significant part of their previous value.
Wise investors bought as much discounted equity as they could justify in one category of their portfolio at rock bottom prices.
Since then the values have increased as much as 40% and some STILL pay dividends as much as 20%.
Question is in light of the inflation of oil prices is it a good time to start off loading these holdings?
Hmmmm…. YES .
Liquidate and be ready for the next cycle of hysteria.
Can you say bubble? Dang!
Oil stocks? SELL IT! Also coal and natural gas, kids! And probably fertilizer too.
Oil will be back below $70 a barrel by early next year. The Saudi Arabians are afraid we’ll start a coal-fuel industry.
As for Saskatchewan, why isn’t the Churchill river dam idea being resurrected. There are a couple good places for Saskatchewanites to get their electricity and get off of gas fired plants.
The Chinese are rescinding their oil subsidy as of tomorrow resulting in a price hike there of some eight percent. Can you say ripple effect, I knew you could, the announcement already precipitated a drop in the futures market.
Its cheaper to make oil by this point. Kevin could be correct, but discards the fact we may be near a monetary adjustment worldwide . The last was called the Great Depression. Wages (Administratively obscene, Workers are near debt slaves . It used to be a CEO made 50 times more than an average worker, now its 500 times. Baseball or sport figures with 3000 million dollar contracts. There is only so much money in circulation. Prices on food now being consumed as fuel, gas can only go so high before infrastructure, transportation, housing, commodity exchanges begin to collapse from over cost. Road maintenance, building projects all have to be put aside because of operating costs. Taxes are a disgraceful high already so no relief there, it would just exacerbate it. The amount of debt owed individually by persons has become staggering. From credit cards to loans. Yes & you can thank the greenies as well for our not keeping up with power generation.
This superlative graph to me, is like looking at a volcano reaching its peak excitability, before final eruption. How long till it stabilizes is anyone’s guess.
Woohoo! Keep the good times rolling!
While I don’t deny that this could be a bubble of sorts, let’s not forget that oil is very much a finite resource, and as we keep burning up the easy to extract stuff, we have to move onto the more costly to stuff.
the more costly to *extract* stuff.
(oops)
kakola at 3:34 PM said . . .
Hey Bart – we’ve got Mr Gormless himself out here in BC. He’s masquerading as the Premier.
===============
Well Gordie is more crafty than any *liberal*. Ultra conservative in liberal label.
To beat Campbell at his game, I would have to invest his $100 dollar *carbon apology bribe* and promptly buy an electric vehicle never to buy gas again.
A Long shot. I always buy after the first owner has invested all the essential early repair and maintenance. Not much on the used EV market yet.
Our essential BC ferry / ships system is run at a profit and the fees are high.
Gordie is going to lay on a fuel surcharge on top of those high fees.
Americans and Canadians ALL become * tourists * once they board a ferry.
Gordie would be wiser to LOWER ferry fees and bring back tourism. A far richer return than one simple profit margin for the BC Ferry Corporation. But, sometimes he is a near-sighted conservative quasi-liberal.= TG
Did anyone catch Jeffrey Simpson’s column this week on carbon taxes? What a huge flip-flop.
Supply and demand folks – we use 87 million barrels a day and only produce 85. It’s called Peak Oil and prices will only go up from here.
peter peter
“””” It’s called Peak Oil and prices will only go up from here. “””””
I gots sum ocean front for sale down town EDmuton
it called greed, and once people catch on , you’ll see a large drop, hopefully not large enought to stagnate exploration and drilling for the “costlier” stuff, as that would leed us back to were we are today!!!
we use 87 million barrels a day and only produce 85
Thats right folks!
Now you too can have the power to use oil from nothing!
Using our patented PFM technology, you will amaze and befudle your green friends and family this summer as you power your home, cottage or favorite getaway for nothing.
For only Three monthly payments of 19.95 you will get your own two CD set of “PFM Your Way to Freedom !!”
(Visa and Mastercard accepted)
(PFM is owned by Pure F___ing Magic Inc.)
TG: “Gordie would be wiser to LOWER ferry fees and bring back tourism….. But, sometimes he is a near-sighted conservative quasi-liberal.= TG”
I don’t for one, think Gordie is as you say. The problem is that the BC Liberals are liberals mostly. Gordie and the other “conservatives” are a small minority. Watch the next Federal election and see which candidates the BC Liberal MLA’s support. I believe that’s why we are getting the squirley liberal policies all the way from “A Gun Amnesty” to “A Uranium Mining Moratorium” to “A Carbon Tax” with all the supporting lies.
A Warning to all readers. I’m sure that few of you would fall for such scams, but there is a load of fuel economy improvement apparatuses being advertised out there. Water electrolyzed to produce “Brown’s Gas” will not produce a 50% improvement in fuel economy.
~http://cr4.globalspec.com/thread/22670/Finally-A-Great-HHO-test-Run-your-car-on-water~
Warning: There are a number of scams out there that claim their gimicks will improve fuel economy by as much as 50%. This is the lowdown.
~http://cr4.globalspec.com/thread/22670/Finally-A-Great-HHO-test-Run-your-car-on-water~
Well folks,the price of gas was much higher in the 1930’s as most couldnt afford to buy it.They parked the cars and used horse power or walked.Farm fuel was $5 a barrel and the wage was $10 a month.$5 from the farmer and $5 from the federal govt.I think that there is an adjustment coming.
To Spike 1:
It’s interesting to note that in the 30’s there was actually a huge battle going on between powering cars by alcohol (ethanol) or gas. Ford was pushing for alcohol but the oil barron’s were seriously lobbying the US government for gas (oil). In fact, Ford had a whole network of service stations to support his alcohol driven cars. The US government agreed that gas (from oil) would be the standard and that is how we how are to where we are today. In fact, there is a famous quote by Ford when asked about powering cars and he looks around the country side and says – it’s all here.
Ethanol is a net energy looser – that is why the country side went to oil.
ethanol is half burnt ethane. obviously on the loser end of fuels. low temperature flame , highly dangerous , miscible with water and therefore environmentally ugly.
plus, if it ever went to the reserves all h would break out.
Is your life running on oil??
Your car, truck, oil furnace? Stop being a prisoner.
Much of Europe runs furnaces on wood pellets.
Too polluting you say? No! It*s not coal. . . it*s wood. Nature burns wood to renew forests for thousands of years.
We Canadians could be burning pine beetle derived wood pellets instead of fuel-oil but oh, no, we are led by our nose-rings to believe that wood burning is enviro-bad.
Ever heard of common sense? The Euros make many mistakes but burning wood pellets is not one of them.
My heat is baseboard electric, but if I lived rurally you can bet it would be wood pellet heat. = TG
“history shows that usually this time it’s not different.”
History shows that this time it’s NEVER different. This is a classic speculative bubble. Worldwide supply and demand for oil aren’t significantly different than they were three years ago. Oil will be below $70 a barrel in a year, probably in six months.
To me that chart is the obvious picture of a bubble about to burst.
I know…. “this time it’s different”.
But history shows that usually this time it’s not different.
Remember when Japan was going to take over the entire world with its vast economic power? Or the “Dow 20,000” projections. etc.
time to tax , and tax and carbon tax some more.
“dat is not fair” Borat Dion.
dis tax will be fair but new distribution
da burden will be to da drivers. people dat live hin rural areas will pay more, dos dirty Halbertans will pay more. dos pipples in sas cat chewon will pay more, pipple dat live hin cold places will pay more. but pipple dat har in trono hand montreal will pay less. dat pipples dat traditionally vote liberal will pay less and dos dat vote torie (spit) will pay more. how can dat be not fair.
There must be someone out there who is following a clue lead that will (a hunch) eventually end up at a serious effort to topple Capitalism and the West. And, damn is that effort moving a breakneck speed!
Hmmmm, US election year?
hint: Soros, Strong, Chavez.
The word bubble is frequently over used when it comes to the commodities market.
How to spot a bubble. The price continues to rise while at the same time supply is increasing and demand is falling. In the oil market there is a bit of speculative froth and the price could pull back if the speculators decide to get out but the overall supply/demand picture at this point does not look good for lower prices longer term. Although the current high prices are having some effect on eroding demand the depletion rates of producing fields is falling even faster (less supply too). The supply/demand equation in oil means that longer term we are probably looking at $200.00 to $250.00 per barrel oil.
Old coot about town Dick Smyth did a segment on AM 640 Toronto where he opined high gas prices could be the work of the Russian mafia.
Which, I guess, is an improvement over his previous “Bush, like Hitler …” segment.
The age of cheap oil is past. The age of oil shale, tar sand and deep sea drilling is upon us.
The world’s supply did not diminish by a factor of 5, nor did the world’s demand increase by that much in the last 5 years, nor the ratio of one to the other. I know it’s not a linear relationship obviously, but still, this type of a spike is not rational.
And demand has many causes. World wide recessions caused by excessive fuel prices would be one cause of a reduction in demand.
I remember when every stock advisor in the world was telling us that the demand for internet and networking bandwidth was going to grow exponentially, and that Nortel was going to be seeing 200$ a share in a year or less.
I’ve made my bets with my investment portfolio. I got out of commodities and out of the TSX index fund a couple of weeks ago. I’ll await what I regard as the inevitable drop. If I’m wrong, you can tease me about it.
dat pipples dat traditionally vote liberal will pay less and dos dat vote torie (spit) will pay more. how can dat be not fair.
Ha, good one cal2!
Great chart.
At least no politician would be so gormless as to propose a fuel tax right now.
Hey Bart – we’ve got Mr Gormless himself out here in BC. He’s masquerading as the Premier.
dat pipples dat traditionally vote liberal will pay less
Certainly the case with childless latte slurpers in large urban centres.
But for example, in manufacturing, transportation, and vote rich Ontario, Dion’s proposal will be as popular as wasps at a picnic. It would be another blow central Canada’s factories could ill afford.
What is strongly evident throughout Dion’s speech is that no one has looked at the effect of this carbon tax on Canada’s competitiveness. Even Coyne hasn’t looked at this yet. Applied at the wholesale level, Canada’s industries will have a $40/tonne tax burden without such costs on any of their competitors. Remember, we are still an exporting nation, deriving most of our income through selling goods and services to other nations, unlike the US with its huge internal economy in which exports and imports are a small proportion of its total economy.
Coupled with a high Canadian dollar, this carbon tax is all too likely to bring on a collapse in the Canadian export sector.
Well, politicians like Dion and other liberals sure do have a sense of timing.
Too bad for them it’s all bad.
Remember when the Kyoto Kultists first started to claim that .10 a litre was the panacea which would solve all the world’s carbon problem? Remember what the price of a litre of gas was at that point? Around $0.60. So now we’re paying more than double that but not only do the green retards not think the problem solved, they still think the same $0.10 a litre tax will do the same good that $0.75 a litre in increased price didn’t do. What kind of stupid do you have to be to believe that? Even Joe Clark can count better than that and he’s the idiot who miscounted Trudea back into office.
You have the Liberal premiers of Ont and Que talking “cap and trade” which is politico speak for gouge and fleece. You have the fed liberal Dion and the BC liberal going the carbon tax rout.
If Harper doesn’t win a majority Canada deserves what it gets.
DickMorris.com has some interesting stats on the run up in oil futures since 2003. Say from 13 billion dollars to 260 billion. Talk about “cap and trade”!
For those who want a different prespective I suggest reading BLACK GOLD STRANGEHOLD by Jerome Corsi and Craig Smith. The part about abiotic carbon fuel theory is intriguing. The rest of the book about the politics of oil is fluff. And for those enviromentalist who think oil is so bad remember this; if it wasn’t for crude oil production all the whales would be extinct and all the forests would be memories
Consider also that oil-based fuels were used as alternatives to much dirtier-burning wood and coal.
Due to its molecular structure, oil and natural gas are much better for the environment than either wood or coal were.
Much of this run-up is due to trading in oil futures … you can get exchange traded funds and bet on whether the price of oil goes up or goes down. So far, traders are betting it’s going up, but that does not reflect the supply/demand balance.
Therefore, oil prices are in a bubble that’s about to burst.
PS. The price of oil is NOT set by politicians or oil companies.
The Iraqi gov’t has happily just opened up it’s huge oil fields to Exxon, BP, Total (Fwance ?), ect – production may some day rival Saudi Arabia’s. Shorts beware !!
Signifigant up surge could come in 6 months. Iraqi’s may soon enjoy the good life also.
Neither would not have happened without the toppling of Saddam. By who ??
For 20 years, between ’47 & ‘67, when gold was fixed at $35/oz, oil was approximately $3/bl. An ounce of gold bought 11.7 barrels of oil. Near the end of 2007 when gold (at a market determined price) was around $750/oz oil was $64/bl. An ounce of gold bought 11.7 barrels of oil.
The value of commodities have not changed all that much over the years. The value of currencies have, big time.
Depreciation of the US $ is responsible for the price of oil. When the Fed decided to run the presses, businesses and speculators knew the price of commodities would rise. They dumped their USD holdings in favour of things that would hold their value.
Maybe they’ve overvalued commodities now or maybe they are right in expecting these prices to stick, considering the politics in the US & all dimwitted stuff the greenie-wiennies are pushing these days.
Remember the Oil Income Trusts?
Remember how with the change in Tax status the trusts were supposed to TANK?
Well now…. since the original nose dive the trusts took most have recovered a significant part of their previous value.
Wise investors bought as much discounted equity as they could justify in one category of their portfolio at rock bottom prices.
Since then the values have increased as much as 40% and some STILL pay dividends as much as 20%.
Question is in light of the inflation of oil prices is it a good time to start off loading these holdings?
Hmmmm…. YES .
Liquidate and be ready for the next cycle of hysteria.
Can you say bubble? Dang!
Oil stocks? SELL IT! Also coal and natural gas, kids! And probably fertilizer too.
Oil will be back below $70 a barrel by early next year. The Saudi Arabians are afraid we’ll start a coal-fuel industry.
As for Saskatchewan, why isn’t the Churchill river dam idea being resurrected. There are a couple good places for Saskatchewanites to get their electricity and get off of gas fired plants.
The Chinese are rescinding their oil subsidy as of tomorrow resulting in a price hike there of some eight percent. Can you say ripple effect, I knew you could, the announcement already precipitated a drop in the futures market.
Its cheaper to make oil by this point. Kevin could be correct, but discards the fact we may be near a monetary adjustment worldwide . The last was called the Great Depression. Wages (Administratively obscene, Workers are near debt slaves . It used to be a CEO made 50 times more than an average worker, now its 500 times. Baseball or sport figures with 3000 million dollar contracts. There is only so much money in circulation. Prices on food now being consumed as fuel, gas can only go so high before infrastructure, transportation, housing, commodity exchanges begin to collapse from over cost. Road maintenance, building projects all have to be put aside because of operating costs. Taxes are a disgraceful high already so no relief there, it would just exacerbate it. The amount of debt owed individually by persons has become staggering. From credit cards to loans. Yes & you can thank the greenies as well for our not keeping up with power generation.
This superlative graph to me, is like looking at a volcano reaching its peak excitability, before final eruption. How long till it stabilizes is anyone’s guess.
Woohoo! Keep the good times rolling!
While I don’t deny that this could be a bubble of sorts, let’s not forget that oil is very much a finite resource, and as we keep burning up the easy to extract stuff, we have to move onto the more costly to stuff.
the more costly to *extract* stuff.
(oops)
kakola at 3:34 PM said . . .
Hey Bart – we’ve got Mr Gormless himself out here in BC. He’s masquerading as the Premier.
===============
Well Gordie is more crafty than any *liberal*. Ultra conservative in liberal label.
To beat Campbell at his game, I would have to invest his $100 dollar *carbon apology bribe* and promptly buy an electric vehicle never to buy gas again.
A Long shot. I always buy after the first owner has invested all the essential early repair and maintenance. Not much on the used EV market yet.
Our essential BC ferry / ships system is run at a profit and the fees are high.
Gordie is going to lay on a fuel surcharge on top of those high fees.
Americans and Canadians ALL become * tourists * once they board a ferry.
Gordie would be wiser to LOWER ferry fees and bring back tourism. A far richer return than one simple profit margin for the BC Ferry Corporation. But, sometimes he is a near-sighted conservative quasi-liberal.= TG
Did anyone catch Jeffrey Simpson’s column this week on carbon taxes? What a huge flip-flop.
Supply and demand folks – we use 87 million barrels a day and only produce 85. It’s called Peak Oil and prices will only go up from here.
peter peter
“””” It’s called Peak Oil and prices will only go up from here. “””””
I gots sum ocean front for sale down town EDmuton
it called greed, and once people catch on , you’ll see a large drop, hopefully not large enought to stagnate exploration and drilling for the “costlier” stuff, as that would leed us back to were we are today!!!
we use 87 million barrels a day and only produce 85
Thats right folks!
Now you too can have the power to use oil from nothing!
Using our patented PFM technology, you will amaze and befudle your green friends and family this summer as you power your home, cottage or favorite getaway for nothing.
For only Three monthly payments of 19.95 you will get your own two CD set of “PFM Your Way to Freedom !!”
(Visa and Mastercard accepted)
(PFM is owned by Pure F___ing Magic Inc.)
TG: “Gordie would be wiser to LOWER ferry fees and bring back tourism….. But, sometimes he is a near-sighted conservative quasi-liberal.= TG”
I don’t for one, think Gordie is as you say. The problem is that the BC Liberals are liberals mostly. Gordie and the other “conservatives” are a small minority. Watch the next Federal election and see which candidates the BC Liberal MLA’s support. I believe that’s why we are getting the squirley liberal policies all the way from “A Gun Amnesty” to “A Uranium Mining Moratorium” to “A Carbon Tax” with all the supporting lies.
A Warning to all readers. I’m sure that few of you would fall for such scams, but there is a load of fuel economy improvement apparatuses being advertised out there. Water electrolyzed to produce “Brown’s Gas” will not produce a 50% improvement in fuel economy.
~http://cr4.globalspec.com/thread/22670/Finally-A-Great-HHO-test-Run-your-car-on-water~
Warning: There are a number of scams out there that claim their gimicks will improve fuel economy by as much as 50%. This is the lowdown.
~http://cr4.globalspec.com/thread/22670/Finally-A-Great-HHO-test-Run-your-car-on-water~
Well folks,the price of gas was much higher in the 1930’s as most couldnt afford to buy it.They parked the cars and used horse power or walked.Farm fuel was $5 a barrel and the wage was $10 a month.$5 from the farmer and $5 from the federal govt.I think that there is an adjustment coming.
To Spike 1:
It’s interesting to note that in the 30’s there was actually a huge battle going on between powering cars by alcohol (ethanol) or gas. Ford was pushing for alcohol but the oil barron’s were seriously lobbying the US government for gas (oil). In fact, Ford had a whole network of service stations to support his alcohol driven cars. The US government agreed that gas (from oil) would be the standard and that is how we how are to where we are today. In fact, there is a famous quote by Ford when asked about powering cars and he looks around the country side and says – it’s all here.
Ethanol is a net energy looser – that is why the country side went to oil.
ethanol is half burnt ethane. obviously on the loser end of fuels. low temperature flame , highly dangerous , miscible with water and therefore environmentally ugly.
plus, if it ever went to the reserves all h would break out.
Is your life running on oil??
Your car, truck, oil furnace? Stop being a prisoner.
Much of Europe runs furnaces on wood pellets.
Too polluting you say? No! It*s not coal. . . it*s wood. Nature burns wood to renew forests for thousands of years.
We Canadians could be burning pine beetle derived wood pellets instead of fuel-oil but oh, no, we are led by our nose-rings to believe that wood burning is enviro-bad.
Ever heard of common sense? The Euros make many mistakes but burning wood pellets is not one of them.
My heat is baseboard electric, but if I lived rurally you can bet it would be wood pellet heat. = TG
“history shows that usually this time it’s not different.”
History shows that this time it’s NEVER different. This is a classic speculative bubble. Worldwide supply and demand for oil aren’t significantly different than they were three years ago. Oil will be below $70 a barrel in a year, probably in six months.