Oil

[louisg]

Which will the world oil market reach first? Oil demand or oil supply.

[john_1]

not sure I understand the question.

[john_1]

are they not in balence with every trade? buyer(demand) seller(supply)so the current price reflects the current point of equilibrium.

[louisg]

What I meant was, do you think that we will get to a point where supply can't physically meet demand or will demand for oil reduce to the point where we will never run out of oil. My thinking is that at some point the alternatives to oil will reduce the demand for oil to such an extent that the the supply of oil measured in barrels will steadily decline. At the moment we are demanding 80 million barrels a day. Which will come first? A point in time where the suppliers can only physically pump x barrels per day, OR we reach a point where we will never need/demand more than x barrels per day.

[john_1]

Peak oil, and we are already there maybe, opec does not have the capacity currently to increase supply to keep the price from rising. Currently the US uses 20 barrels per unit, china uses 1,5 per unit so just a small increase in china's demand will have a huge impact. I am so glad you bring this up because economic development is dirrectly corrolated to energy. Economic development and therefore stock prics will suffer in this enviroment until we change or find alternatives. so watch trends because this WILL effect our life times.

[john_1]

Peak oil, and we are already there maybe, opec does not have the capacity currently to increase supply to keep the price from rising. Currently the US uses 20 barrels per unit, china uses 1,5 per unit so just a small increase in china's demand will have a huge impact. I am so glad you bring this up because economic development is dirrectly corrolated to energy. Economic development and therefore stock prics will suffer in this enviroment until we change or find alternatives. so watch trends because this WILL effect our life times.

[#7]

Dude, I'll post you some.

[#8]

Economic pain will now force human civilization to take the next step. The higher the oil price, the more money will be poured into the development of alternative technologies.

[louisg]

Wikipedia - "Peak oil is the point in time when the maximum rate of global petroleum production is reached, after which the rate of production enters its terminal decline." My understanding of peak oil theory is that there WILL come a point in time when supply cannot meet demand. I'm guessing that we will NEVER reach a point in time where supply cannot meet demand for oil.

[barry_1]

The USA in Colorado and Canada are sitting on huge quantities of what is called tar sands,some of this and ordinary oil areas are whats called,stragecic reserves,with a veil of secrecy there over.Americans are very clever and encourage other nations to develop and sell all their oil as deamnds are to be met.I first read about this in National Geographic many years ago.As supplies become shorter North America will in theory then be able to exert their influence easier as they will have the vast majority of untapped oil left.

[Brazen]

Diabolical. And then Bush's pushing the Saudi's to up production in order to help the pain in the US. At least they gave him the brush off with a token raising.

[Russ]

He he! I've discovered a little something in my garden that not even National Geographic knows about.I can't reveal it for fear that George Bush will send troops in to overthrow Thabo Mbeki.

[john_1]

geez mate, that is a big time risky bet I take the other view we will reach this point and as such buy and hold is a sure way to economic death.

[louisg]

I'm not betting anything on the supply/demand of oil. With all the doom and gloom around the oil price, it was just something that occured to me that peak oil is a fallacy. We WILL find alternatives and better effiancies. Humans have a knack of over-coming anything.