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Gold/Mining/Energy : Peak Oil, or Oil Bubble? -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (164)	7/4/2008 8:02:55 AM
From: Rock_nj	Read Replies (1) \| Respond to of 229

Before anyone gets too worried about $200 or $300 barrel oil, consider that we have already endured a 700%+ increase in oil from $20 to $145 this decade, and life goes on, with a slower economy and changing lifestyles that are adjusting to the new reality of more expensive oil products. $200 oil is just another 45% increase from current levels, and $300 oil is a 110% from oil's price right now. These oil prices sound scary, but in reality, we can absorb another 155% increase in oil prices rather easily. Some TV commentators are talking as though $200 oil would mean a serious economic collapse, but that is an irrational statement to make since it's only a 45% increase from current levels. We will be in trouble if Peak Oil happens too quickly or if a war with Iran cuts supplies of oil in a big way, and oil races to $1,500 a barrel, but that is not likely. The economy will slow before that happens and demand will drop. People will find ways to get more out of the oil we use, or just use less by changing to alternatives. The transition away from an oil based economy has already begun. We just need time to get past the oil peak and onto something new for our transportation and heating needs. We could cut our oil consumption in half by doubling the fuel efficiency of our cars and trucks, which is not hard to do with new hybrid technologies, plug-in hybrid technologies and flex-fuel vehicles that run partially on biofuels. We could cut our heating oil usage dramatically by switching to natural gas and geothermal heating. This change over to more efficient and oil-independent technolgies will create a lot of economic activity, and will save consumers money once they change over, all of which will help the economy in the long run. Peak Oil is managable, if we have the right people in leadership positions to ease the transition away from oil with economic incentives.