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He may have meant we've had nine oil price spikes over the same time span that we had ten recessions. Only problem was that most of those spikes came before expansions, and most recessions have happened after oil price dips or flat times.
IMHO there's just not enough of a correlation between oil and the gdp. OTOH, there's a really clear correlation between "doom-n-gloom" and democrats.
Yesterday I paid $2.34 a gallon for regular gas. Of course, this is California.
WASS. (we are so screwed)
Suncor to launch $10B Alberta oilsands project: report
Last Updated Mon, 14 Mar 2005 10:34:30 EST
CBC News
TORONTO - Suncor Energy will begin a $10 billion oilsands project in northern Alberta, a published report says Monday.
FROM CBC ARCHIVES: Alberta's oil economy
The Calgary-based company is set to file a regulatory application for the Voyageur project once markets close Monday, said the Globe and Mail.
The expansion in Fort McMurray's oilsands is part of a new oil boom, spurred by higher prices for crude oil.
The company's Voyageur project would add a third upgrader to its oilsands operations, boosting its daily capacity by 200,000 barrels.
FROM JAN. 20, 2005: Suncor says fire will cut oilsands production in half during repair period
Steven Williams, Suncor's executive vice-president of oilsands operations, told the Globe the project's $10-billion cost could make it the largest megaproject in Fort McMurray.
The company will submit its application to the Alberta Energy and Utilities Board and the province's Environment Ministry, said the report.
While the initial application deals only with the upgrader facility that turns thick bitumen into crude oil, the final project will include a new mining operation that feeds bitumen into the upgrader.
Crude futures were down 73 cents at $53.70 US in early trading in New York.
"We expect oil to remain above $40 US a barrel for the foreseeable future," Glenn MacNeill of Sentry Select Capital told CBC Newsworld.
Suncor shares were down $1.30 at $46.16 in morning trading on the TSX
Maybe just expanding the Y-axis would solve this.
We're doomed! Doomed I tell you! Pack up the bottled water!
:) Hehe!
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Any statistician worth his salt will tell you that correlation does not equal causation. It's just as likely that boom times pushed up the price of oil and recessions pushed the price back down.
What this most reminds me of is the run up prior to the fall to sub $15 / barrel back during the late 1970s. As painful as that particular burst bubble might have been for folks in Houston, overall, it helped fuel the greatest peacetime economic expansion in US history. Today's prices have got quite the bubbly feel about them, IMHO. To me, that's good news.
Oil and natural gas prices are hitting us hard. Energy is the blood of the world economy, and with prices this high, everyone who is tight on money gets even tighter. I can tell you that my discretionary spending is the lowest it has ever been in my adult life. It hits us here on the low end pretty hard. In the past, I have always been against the doomsday screamers who want us to run cars on jelly beans or whatever the fad fuel is. But now I'm behind them. I would love to see an alternative technology collapse the entire oil monopoly. I hope it happens in my lifetime.
I can't say that a rise of 15 cents per gallon over the past couple weeks would have much of an impact on me, since i drive a 10-gallon Toyota. The $1.50 more per week I pay in gas won't hurt. Even if the price were to rise $1 a gallon (highly unlikely) I would think i can survive that as well.
