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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: texas_coyote who wrote (11297)	8/7/2005 2:30:00 PM
From: Crossy	Respond to of 37387

texas_coyote how I see life changing ? depends on what you are doing right now and where you are. For example in Europe, tax components make up 80% of the price of gas at the pump. So even doubling crude petroleum prices won't have that much impact. One basic tenet that is unquestionable to me IMHO is that in a $100 crude environment, Crude oil is just too valuable to generate electricity. The obvious result will be IMHO to see a revival of nuclear power for exactly this purpose. Even Natural gas is too valuable to generate electricity. Better use it for heating applications and as an industrial feedstock. Migrate some energy intensive processes (fertilizer, aluminium smelter) away to stranded gas reserves. But this has already be accomplished to a good degree. In the market economy, we have the price system to change behaviour - provided that we let this system do its work. Goldman Sachs calls this "demand destruction" which aptly describes the interaction that wa are going to see. Finally - why is $4 gas scary ? In Europe we have been paying that all along for years now. Frankly, there's no reason to panic but rather to face what we is approaching us. How each of us is affected by $100 crude and $4 gas is of course different for each one - it will affect everyone in a different manner I guess. rgrds CROSSY