The R word.
Energy prices not going down even if SA raises production. Not enough tankers to bring in increased production.
Not enough refineries[if they make gasoline, they shirk heating oil and visa versa]. Not enough Natural Gas; price has gone up 150%, but injections are DOWN; if it was there it would crawl out of the woodwork at these prices.
Not enough rigs.
Not enough workers.
Not enough pipelines[the ones we have are old and corroded].
No one wants a refinery built[ you know they cause cancer!; anyone for tort reform?] Same for pipelines, generating plants. Love those EPA idiots to death this Christmas.
The investment needed in energy has been neglected for years. But that's because we're less dependent, right?
That productivity level better be really good; like the technology to run SUV's on air[still very cheap].
Bottom line, if you beleive the government, wages aren't going up. Accept then the fact that the avg joe's discretionary income is not going for clothes, computers, etc. but for gasoline ,nat gas or heating oil.
Those plastics, petrochemicals[ paint,insecticides,etc.] aren't going to go up, because of increased productivity! Right!
The last hope was that energy prices would fall! It takes 2 years to build a tanker, pipeline , refinery. The R word is getting bigger every day.
Those lawyers[President,VP and energy secretary] in Washington are in a quandary; they will soon advocate price controls further depriving energy of the investment it needs; even that won't avert a recession.
Enjoy the parabolic rise in energy stocks that is at hand; and keep tight stops on all techs. The denial stage in energy is ending and the stage of anger is at hand. Was it Big Oil or Big Government to blame? I have no doubt the people with the press' help will reach the wrong conclusion!
Regards,
Anyer |
