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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (34059)	8/2/2004 3:47:43 PM
From: Umunhum	Respond to of 206329

<i thought some one here posted months ago that the project in canada was profitable already in high $30.> It is profitable, however the scalability of the project is limited. Exxon never said that oil is going to $80. Exxon said that demand growth coupled with depletion is going to require the industry to add 60 million barrels per day of oil equivalent by 2010. Right now the industry is producing 120 mbpdoe. There is no way they are going to add that much capacity at $40, $50 or $60 oil. Oil prices are going to have to rise significantly from here causing some demand destruction. In Q4 of this year daily demand of oil is going to exceed the capacity of supply for the first time ever. I think oil shortages are going to cause the death of the dollar. The only reason that China and Japan continue to take dollars is because they can buy oil and other commodities with them. It was smart of us to have all the commodities traded word wide denominated in dollars. When the shortages hit, the middle eastern countries are going to want something more for their valuable oil then paper we print in the back room and the party is going to be over. $80 oil minimum, hyperinflation and everything that goes with it. Buy hard assets now while they are still accepting paper for them! In another four years there are going to be political ads showing grandma saying she can either pay her heating bill or her grocery bill but not both.