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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Tommaso who wrote (7142)5/27/2004 10:16:31 AM
From: Perspective  Read Replies (3) of 116555
 
As tippet just said,

Message 20168702

*everything* (as far as I can tell) comes down to this ratio:

energy recovered / energy input

If that ratio is less than 1.0, it takes more energy to extract a Joule of energy than the energy you get out. This ratio has been falling for our energy sources for a while now, but I believe it is still in the high single digits. The more difficult the starting material, the lower grade the energy, and the lower this ratio falls.

Also, I'm skeptical of your $12-15/bbl number; they'd be jammin' that stuff out of the ground like fiends right now if that were true, and they would have been in business and profitable for most every energy price scenario of recent history. Their absence tells me something.

BC
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