Crude Awakening?
Some time ago, I thought of selling the car. It is precisely because of what I thought would happen to the financial system worldwide. What I thought would happen, did but I did take into consideration that the Feds would do something about it.
I’m no market analyst but I was watching markets around the world. The downtrend all around raise flag in my head. Anyway, looking at the way things are going, this is a period of uncertainty still. Many investors are wary of how big a rescue plan need to be to make sure the market’s don’t implode.
Fast forward to today, oil prices drop a little and everyone who drives is looking forward to a drop in gas prices. I have to admit, I’m one of those, optimistic that gas prices will go back to something more normal.
Then, I stumbled on this this article in CNN Money.
The article mentions Matt Simmons who wrote the book Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy
Matt Simmons is an investment banker with his own boutique bank, Simmons & Co. In the book, Simmons offers a detailed description of the relationship between Saudi Arabia and the U.S and our long-standing dependence upon Saudi oil.
He also highlights many discrepancies between Saudi Arabia’s actual production potential and its seemingly extravagant resource claims. After writing his book, he has moved to the forefront of the peak-oil movement - a growing contingent of oil industry veterans, independent consultants, investors, and academics who believe that world oil production is at or near an inflection point, after which it will fall inexorably and fail to meet projected future demands.
The article in CNN mentions that while we are not running out of oil tomorrow, we might be pass the point of cheap oil. Why is this important? I think it is important for us to know and make provision for such things that could happen. Perhaps like investing in solar energy, if you live in places that is practical. There are places in the US, where there is loans and subsidies to install solar panels, which make financial sense to do so. At the same time you are going green.
If you are keen on the documentary, you can get the DVD here
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