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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (40184)	3/22/2004 1:46:29 PM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

The Harsh Truth About Outsourcing Message 19943485

To: Jim Willie CB who wrote (40184)	3/22/2004 2:11:22 PM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

The Oil Factor: How Oil Controls The Economy siliconinvestor.com <<...In his book Leeb claims it is essential that investors grasp the following realities: For the last thirty years the price of crude oil is the single most important determinant of the market and the economy. Sharp rises in oil prices have been deadly for the stock market and for the economy. Level or declining oil prices have correlated with an expanding economy and rising stock market. The U.S. has more or less ceded control over oil prices to third parties over the last thirty years – mainly OPEC countries – that act as swing producers and influence global energy prices. Crude oil production in the U.S. began to decline in the early 1970’s, and many of the larger fields worldwide are mature and peaking or themselves in decline. Because of the importance of energy to the economy, we now exercise little control over our economic fate - and by extension the stock market. This situation is about to shift from bad to worse as for all practical purposes crude oil supplies are peaking. Demand for crude oil continues to expand in both the U.S. and in developing countries such as China. The fate of the U.S. economy hangs in the balance - at the mercy of a few nations with excess crude oil productive capacity – countries that may not share the same interests or goals as the U.S. Leeb points out that oil supplies around 40% of U.S. energy demand. While the economy uses energy much more efficiently than it did several decades ago, the bottom line is that economic growth requires the use of more energy to produce that growth. With additional demands on the crude oil markets from strongly growing economies (like China’s) demand for oil continues to increase year after year. A growing world economy will demand that more energy be consumed. Coupled with the fact that many oil fields are mature and are nearing their peak production rates – worldwide crude oil supply is expected to plateau then begin to decline. Plenty of oil is left in the ground, but extracting it will prove to be more difficult as reserves are depleted and the easy, most accessible oil, has been produced...>>