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What a $200/Barrel World Looks Like

Discussion in 'Sports and News' started by Lugnuts, Jun 1, 2008.

Page 6 of 11
  1. The Big Ragu

    The Big Ragu Moderator Staff Member


    Domestic consumption is down by miniscule amounts, and of course it is. The price of gas is squeezing people, the economy is flagging and we are seeing inflation creep in.

    But how Americentric!

    Just to put the world (emphasis on world, not U.S.) oil market into perspective... When the Japanese economy took off between 1950 and 1970, Japanese oil consumption rose from 1 barrel per capita per year to more than 17 barrels. And that had a profound effect on the price of oil worldwide.

    That was nothing compared to what is happening right now, though.

    China and India are now in the early states of a similar growth curve. A few years ago (like 3 or 4 years ago), they were consuming just over 1 barrel per capita per year. Today it is close to 3 barrels per capita per year.

    The thing is, China and India's combined populations are 18 times that of Japan. As their consumer economies contine to expand, the stress we are seeing on the world's limited supply of oil is only going to intensify.

    By the way, this is not just limited to oil or energy. It applies to food, metals and other commodities.

    Sorry, the U.S. isn't the only place on earth. It is actually increasingly less and less relevant when it comes to demand for natural resources.
     
    The Big Ragu, Jun 2, 2008
    #61
  2. Inky_Wretch

    Inky_Wretch Well-Known Member

    Why do you hate 'Murica?
     
    Inky_Wretch, Jun 2, 2008
    #62
  3. Stoney

    Stoney Well-Known Member

    Interesting but frightening facts. How dare the rest of the world think they can start consuming at the same rate we do.

    It's past time to go nuclear, or WHATEVER. We've got to start replacing our oil addiction with a new drug, ASAP. I hope alternative energy (and health care reform) is the absolute highest priority of whoever our next Prez is.

    And I pray we spend this election season focusing on and debating those issues instead of gay marriage, attention-seeking pastors and fucking lapel pins. Is that too much too ask? Sadly, probably so.
     
    Stoney, Jun 2, 2008
    #63
  4. Boom_70

    Boom_70 Well-Known Member

    Ragu is becoming the American jr
     
    Boom_70, Jun 2, 2008
    #64
  5. Inky_Wretch

    Inky_Wretch Well-Known Member

    No, that won't happen. Instead, they'll dilly-dally about suspending the gas tax for three months and drilling ANWR.

    Band-aids, when we need quadruple bypass surgery.
     
    Inky_Wretch, Jun 2, 2008
    #65
  6. JackS

    JackS Member

    I know less about economics than John McCain, so I won't try to get in the middle of the Ragu/Boom debate, but I do question one thing Ragu said about 10,000 words ago, which deals more with geology.

    I say the Saudis could not produce more even if they wanted to.
     
    JackS, Jun 2, 2008
    #66
  7. BTExpress

    BTExpress Well-Known Member

    Heck, I'll question something else Ragu said:

    Oil is a finite commodity, and thus is not subject to "bubble" (like tech stocks).

    Gold is a finite commodity . . . so what was it that drove its price to $800+ an ounce in 1979 if not a bubble?
     
    BTExpress, Jun 2, 2008
    #67
  8. Rex Harrison

    Rex Harrison Member

    So, am I right to think that our own fucking companies started that foreign growth by outsourcing thousands of jobs? We're stimulating growth abroad that hurts us at home?
     
    Rex Harrison, Jun 3, 2008
    #68
  9. Boom_70

    Boom_70 Well-Known Member

    Well the world is flat now/ Tom Friedman
     
    Boom_70, Jun 3, 2008
    #69
  10. The Big Ragu

    The Big Ragu Moderator Staff Member

    When did I say that?

    Any market can bubble.

    By the way, gold ran up in the late 70s because of runaway inflation.

    There might have been a bubble from from overexuberance--and there frequently is when a market like that moves (and the bubble always pops). But at least a good chunk of the price appreciation had a fundamental underlying reason.

    A price increase in a commodity does not necessarily = a bubble. Usually there is something happening in the world that causes the price to rise--as with gold when inflation gets out of hand or with oil right now.
     
    The Big Ragu, Jun 3, 2008
    #70
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    You are correct. They can't produce more oil. But that is semantics. I am assuming you know I really meant they are limiting how much they pump from the ground, right?
     
    The Big Ragu, Jun 3, 2008
    #71
  12. Boom_70

    Boom_70 Well-Known Member

    Boom: Ragu what time is it?


    Ragu:

    Well you see to learn the time you first need to get a watch. A watch is made overseas of several small parts. One hand points to the hour and another points to the minute. People are taught how to tell time at a very young age.
    Some societies put a greater value on time as a measurement than others. To ask what time it is,really trivializes the whole process. If time were viewed as a depleting resource it would be treated with greater respect. Time is a very relative commodity.

    Boom     : Fine - but what time is it?
     
    Boom_70, Jun 3, 2008
    #72
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