The High Price of Oil Extends Far Beyond the Gas Pump by Andy Gordon
The era of cheap oil may finally be coming to an end... and our economy will never be the same. The high price of oil affects much of what we invest in and spend money on. Not only the cars we drive and the planes we fly, but also the companies that power their production with oil as well as some 3,000 products that contain oil (everything from plastic to perfumes and cosmetics to synthetic fibers and rubber).
Are we ready to transition into this new era? It won't be easy. Consider the following unsettling facts (courtesy of MoneyWeek):
1. The U.S. has 5% of the world's population, uses 25% of global oil production, and has only 2% of the world's proven oil resources.
2. If the U.S. had to rely only on its own current supplies of oil, those supplies would last a total of two years and nine months.
3. The last jumbo oilfield (containing more than a billion barrels) discovered in the U.S. was Alaska's Prudhoe Bay... over 20 years ago.
4. U.S. oil pumping rates from wells is 300 barrels per day (bpd). It's 10,000 bpd in the Middle East.
We're going to pay a high price, and not just at the pump. Almost everything will be costing more. It'll be harder to save than ever. And it'll be truer than ever that the road to wealth isn't through savings but through earning more money via a side business and investing wisely.
Every American Should Read This
Every American Should Read This
A formula for tact: "Be brief politely, be aggressive smilingly, be emphatic pleasantly, be positive diplomatically, be right graciously".
Every American Should Read This
America does indeed have an over-reliance on oil. That said, we should not forget the resourcefulness of its inhabitants who have overcome far greater problems in the past.
Every American Should Read This
polycarp wrote: The High Price of Oil Extends Far Beyond the Gas Pump by Andy Gordon
The era of cheap oil may finally be coming to an end... and our economy will never be the same. The high price of oil affects much of what we invest in and spend money on. Not only the cars we drive and the planes we fly, but also the companies that power their production with oil as well as some 3,000 products that contain oil (everything from plastic to perfumes and cosmetics to synthetic fibers and rubber).
Are we ready to transition into this new era? It won't be easy. Consider the following unsettling facts (courtesy of MoneyWeek):
1. The U.S. has 5% of the world's population, uses 25% of global oil production, and has only 2% of the world's proven oil resources.
2. If the U.S. had to rely only on its own current supplies of oil, those supplies would last a total of two years and nine months.
3. The last jumbo oilfield (containing more than a billion barrels) discovered in the U.S. was Alaska's Prudhoe Bay... over 20 years ago.
4. U.S. oil pumping rates from wells is 300 barrels per day (bpd). It's 10,000 bpd in the Middle East.
We're going to pay a high price, and not just at the pump. Almost everything will be costing more. It'll be harder to save than ever. And it'll be truer than ever that the road to wealth isn't through savings but through earning more money via a side business and investing wisely.
Either the pumping rate of nearly 5 million barrels per day in the U.S has dropped drastically from last year or the 300 bpd quoted here is in error. Could you explain the 300 bpd please?
The era of cheap oil may finally be coming to an end... and our economy will never be the same. The high price of oil affects much of what we invest in and spend money on. Not only the cars we drive and the planes we fly, but also the companies that power their production with oil as well as some 3,000 products that contain oil (everything from plastic to perfumes and cosmetics to synthetic fibers and rubber).
Are we ready to transition into this new era? It won't be easy. Consider the following unsettling facts (courtesy of MoneyWeek):
1. The U.S. has 5% of the world's population, uses 25% of global oil production, and has only 2% of the world's proven oil resources.
2. If the U.S. had to rely only on its own current supplies of oil, those supplies would last a total of two years and nine months.
3. The last jumbo oilfield (containing more than a billion barrels) discovered in the U.S. was Alaska's Prudhoe Bay... over 20 years ago.
4. U.S. oil pumping rates from wells is 300 barrels per day (bpd). It's 10,000 bpd in the Middle East.
We're going to pay a high price, and not just at the pump. Almost everything will be costing more. It'll be harder to save than ever. And it'll be truer than ever that the road to wealth isn't through savings but through earning more money via a side business and investing wisely.
Either the pumping rate of nearly 5 million barrels per day in the U.S has dropped drastically from last year or the 300 bpd quoted here is in error. Could you explain the 300 bpd please?
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Every American Should Read This
The Canadian Athabasca tar sand fields are estimated to contain the equivalent of 1.7 trillion barrels of oil in reserve.
it's difficult to recover. as the cost of the 'easily' recovered crude oils rises, the economic viability of the tar sands comes closer to reach.
the wisdom of resorting to yet another finite resource to quench the global demand for petroleum and petroleum products is questionable.
solar. that's the future. no muss, no fuss. newly developed solar panels have an efficiency of 21% in energy conversion. technology will undoubtedly increase that. if they can reach even just 50% efficiency, global energy needs will be satisfied easily.
work is apace in laboratories all over the world to get there.
it's difficult to recover. as the cost of the 'easily' recovered crude oils rises, the economic viability of the tar sands comes closer to reach.
the wisdom of resorting to yet another finite resource to quench the global demand for petroleum and petroleum products is questionable.
solar. that's the future. no muss, no fuss. newly developed solar panels have an efficiency of 21% in energy conversion. technology will undoubtedly increase that. if they can reach even just 50% efficiency, global energy needs will be satisfied easily.
work is apace in laboratories all over the world to get there.
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