Cheap Crude Oil Is Gone, And That's Good News

The Market Oracle ^ | 1-15-2010 | Casey Research

[blam]

Cheap Crude Oil Is Gone, And That's Good News

Commodities / Crude Oil
Jan 15, 2010 - 04:21 PM
By: Casey Research

Marin Katusa writes: Over the next year or two, you will likely find yourself paying a LOT more at the gas pump. Big changes are taking place in the oil industry. With increased global demand and declining supply, easy oil is not so easy anymore.

Everything is about to get more expensive. From gasoline to anti-freeze, life jackets to golf balls, and eye glasses to fertilizer. There are very few things in the modern world that aren't made from oil, made by machines dependant on oil, or shipped by vehicles powered by oil.

The implications, at first glance, appear to be the opposite of good news. In fact, it's enough to strike panic in the hearts and wallets of the average consumer. And that's exactly why the International Energy Agency just released its annual World Energy Outlook, clearly rejecting the possibility that crude output is now in terminal decline. Their attitude seems to be, what you don't know won't hurt you. For now that is.

The truth however, is beginning to surface, and from an investor's perspective, the truth can mean money in the bank. Right now, the IEA's claim that oil production will be ramped up from its current level of 85 million barrels per day to 105 million barrel per day by 2030 is receiving harsh criticism.

The Guardian reports, "The world is much closer to running out of oil than official estimates admit."

This comes from a whistleblower inside the International Energy Agency who states the fear of triggering panic buying has caused them to intentionally underplay the inevitable shortage.

[snip]

(Monday may be a good day to buy the fertlizer for your depression garden, ahem)

[radioone]

The Dems better hope gas doesn’t reach $4.00 this summer. “It’s the People’s seat”, and “Drill Here, Drill Now” will become very well know slogans on TV and radio.

[Lazamataz]

Peak Oil has finally arrived, in this year of 1938 1944 1949 1951 1956 1963 1967 1972 1975 1979 1982 1988 1993 1995 1998 2001 2003 2007 2010

[ckilmer]

US oil imports are falling sharply.

[ProtectOurFreedom]

This is such a pointless argument. All the greenies tell us we are going to magically reduce our CO2 emissions by 85% by 2050. To be on that trajectory, we probably have to cut our CO2 emissions by 60% by 2030 because we'll have captured most of the easy, "cheap" oil savings by then. Therefore, instead of needing 80 MBPD in 2030, we'll only need 35 MBPD. So why bother even discussing whether we'll need 90 or 105 MBPD when we'll be far, far below that amount with the coming magic technologies? The GW alarmists are going to save us from this awful conundrum.

[zeestephen]

Expensive oil is NEVER good for the USA economy.

America’s most prosperous years since WW2 have been 1950-1970 and 1985-2000, when the inflation adjusted price of oil was in the $15-$25 range.

America’s most severe recessions since WW2 have been 1974, 1981, and 2009, which correspond to oil prices in the $50-$100 range.

[Whitebread]

The global peak of new oil discoveries took place in 1964.

The world has been burning more oil than it finds every since 1981

[Whitebread]

The global peak of new oil discoveries took place in 1964.

The world has been burning more oil than it finds every year since 1981

[slowhandluke]

Ah nuts - I let the title influence how I read the article. The article is primarily the ‘peak oil’ argument.

[sionnsar]

I like how it ends:

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