SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
Sam
To: Bearcatbob who wrote (184210)6/2/2014 12:42:56 PM
From: Jim P.1 Recommendation   of 206201
 
I think the $1000 number may be a euphemism for whatever it takes to move away from polluting limited fossil fuels.

I think all policies that cause oil and gas reserves to be off limits are forms of hoarding. Hoarding caused by higher royalty rates or taxes vs hoarding of resource by forced efficiency gains in mileage, the use of a strategic petroleum reserve, etc all have different cost. Mileage requirement make cars smaller and during the transition we have a mix of large automobiles and small ones. The cost is lives lost in the smaller cars when they vs a larger automobile.

The strategic petroleum reserve given enough time will hold oil that has a cost of over $1000 a barrel if you were to add in the cost of maintaining and testing the reserve and the debt that has been used to finance the reserve.

Obvious hoarding as Norway has done by slowly opening up new areas to development are seen as sensible. Here in the U.S. property rights move that sort of hoarding to the public domain so we have areas off limits and for areas not off limits the carbon tax among other tools used in effect to cause hoarding.
Very inefficient methods compared to raising the price of carbon based fuels over time to the painful level.

The effect on price of hoarding is to smooth out the price of a resource over time.
In the case of oil if the time frame is beyond your grand children then the $1000 comment makes perfect sense unless you are one that thinks technology can cure resource depletion.

jim



Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News