Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Fiscally Conservative who wrote (101895)	6/1/2008 6:18:48 AM
From: elmatador	of 206321

Difference between the oil price drop 1986 and today environment. 1) Then there was 2.5 billion people out of the world economy. China, USSR (communism) and LATAM debt crisis. 2) Then OPEC could swing prices because it was afraid of alternatives being found for oil. 1) and 2) doesn't exists anymore. Only huge drop in demand can lead to cheaper oil. As 2.5 billion consume more, the fishermen and truckers of Europe feel the pinch. The country that subsidizes fuel idem. Only solution for Europe is cutting dramatically fuel taxes to make the pain bearable. But only for the moment. For the consumption of those 2.5billion will continue unabated. In 5 years, with the gas guzzlers into scrap heap and more (and expensive found) oil coming on stream prices will stabilize. Jury still out for what that price will be. The only infrastructures that are build (need pipelines only) and the technology that is around to relieve pain is sugar cane ethanol.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next