Wheeldog

Qatar says oil prices should top 100 dollars

[quote]Qatar's energy minister said crude oil prices, which have surged recently to record levels above 80 dollars a barrel, should be more than 100 dollars.
"If we take into account inflation from 1972 to the present day, the real and fair price for oil should be more than 100 dollars," Abdullah bin Hamad Al-Attiyah said in remarks aired by Al-Jazeera television on Tuesday.

He said such a price was justified by rising inflation, a fall in purchasing power and the weakness of the dollar, which has dropped about 10 percent in value against the euro over the past year. [/QUOTE

When a major oil producer makes comments like the above, it usually is a forewarning of a new round of price hikes. $100+ oil would likely translate into $5 a gallon gasoline. And this is not the end. Oil supplies around the globe are becoming increasingly tight and world demand continues to climb. Eventually, the price will reach a point when it result in a major economic constriction.

LessGovMrPrez

Sweet!!!!

Good thing I got stock in Exxon!!!!!!

Wheeldog

Good for you. However, chances are that we will all be hit either directly or indirectly by a major hike in oil cost.

LessGovMrPrez

SWEET! At least I will have extra income to offset the high price for awhile!

"He who prepares, is less likely to fail or fall!"

Diligent_d

I guess you're totally isolated/immune from the overall economy too, huh?

Wheeldog

Your point is well taken. When the oil crunch gets really serious it will impact virtually every aspect of modern life. This includes food, health care, transportation, communication, manufacturing, settlement patterns, government, etc. This is not going to be some sort of minor, short-term blip in the system - it will radically change the system itself. Being "better off" than your neighbors will be like a man with one leg is better off than one who has lost both legs. And, you will still have to work with your neighbors.

texas_tank

thats why we say to hell with oil, and begin using alternative fuel methods..

the oil prices are going to destroy the economy and raise tarrifs.. that would fuck up everything.. including free trade..

Diligent_d

Exactly right. Every time oil prices go up, it provides me with a small spark of hope that it will provide further impetus for mankind to begin seriously investing in an alternative energy source - but I also am filled with a fear, because I know that it's going to be one hell of a rough ride, transitioning out from oil.

This is coming from a person who does not drive. But I am still concerned due to the fact that I realize the transition goes beyond simple pump prices. Our entire economy is based on the consumption of oil. If oil prices go up, as you mentioned in your post our cost of heating and electricity also goes up since most of our power plants are either oil or coal. The cost of manufacturing goes up, as petroleum is used to build almost everything from plastics to paints – not to mention the increased cost of powering the manufacturing plants as alluded to above.

The massive human cost of climate change aside, I think the biggest struggle will also be replacing multi-trillions of dollars of existing hard capital assets toward a new energy infrastructure. I think it will affect us all in one way or another.

LessGovMrPrez

Well glad to see someone gets it! Now maybe people can realize why we are in the Middle East trying to keep THE WORLDS OIL SUPPLY in the hands of people who dont want to send us back to the 4th Century!

LessGovMrPrez

Your fear is well placed. The world runs on oil. We need to secure that energy source, while we work for alternate forms of energy. Which is why we are in the Middle East, to secure oil for the world to flourish until we all can move in another direction with energy.

We have to secure our current form of energy before we just jump into a less efficient form first.