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

To: Dennis Roth who wrote (63588)	4/29/2006 10:20:49 AM
From: ChanceIs	Respond to of 206326

>>>Production is peaking sooner because of geopolitical restraints.<<< According to Ken Deffeyes, production peaked Thanksgiving Day 2005. globalpublicmedia.com But lets just say he was off by a few months or a year. From an investment perspective, one has to look at the cost of supply, production rate vice total production, and effect of supply on price. Right now, investment is expensive because all of the rigs are tied up. In general if you produce at higher rates, you get less total production. Finally, if you bring on a lot of supply, the market price drops. I would venture to guess that it is definitely to a producers advantage to not bust his neck maxing out production on the downside of the Peak. The high prices will also kill off some demand. We are surely entering new market dynamics. But when has the market dynamic ceased to change??

To: Dennis Roth who wrote (63588)	4/29/2006 10:24:15 AM
From: Tommaso	Read Replies (1) \| Respond to of 206326

All Americans --Republicans or Democrats or whatever-- seem to suffer from a kind of Protestant or philosophical idealism that imagines that human will can control the processes of the universe. The processes of the universe created deposits of oil and natural gas hundreds of millions of years ago, and the current efflorescence of microbes known to themselves as homo sapiens have colectively, all six or seven billion of them, consumed about half of all the hydrocarbons in the earth's crust. These greedy microbes are going to have to find some other source of heat besides burning up these ancient deposits. Some of the more intelligent of these germs have already found out how to get a much more nearly unlimited supply of energy from nuclear fission. Some of them can even pronounce the word "nuclear." But a great many of these primordal conglomerations of organic chemicals suffer from a politico-religious delusion that they can simply will more hydrocarbons into existence.