petej + fuel   46

Ten Reasons Why a Severe Drop in Oil Prices is a Problem | Our Finite World
"In my view, a rapid drop in oil prices is likely a symptom that we are approaching a debt-related collapse–in other words, the second of these two problems. Underlying this debt-related collapse is the fact that we seem to be reaching the limits of a finite world. There is a growing mismatch between what workers in oil importing countries can afford, and the rising real costs of extraction, including associated governmental costs. This has been covered up to date by rising debt, but at some point, it will not be possible to keep increasing the debt sufficiently.

The timing of collapse may not be immediate. Low oil prices take a while to work their way through the system. It is also possible that the world’s financiers will put off a major collapse for a while longer, through more QE, or more programs related to QE. For example, actually getting money into the hands of customers would seem to be temporarily helpful.

At some point the debt situation will eventually reach a breaking point. One way this could happen is through an increase in interest rates. If this happens, world economic growth is likely to slow greatly. Oil and commodity prices will fall further. Debt defaults will skyrocket. Not only will oil production drop, but production of many other commodities will drop, including natural gas and coal. In such a scenario, the downslope of all energy use is likely to be quite steep, perhaps similar to what is shown in the following chart."
oil  energy  fuel  prices  production  economics  shale  USA  debt  finance  crisis 
december 2014 by petej
Leading article: For all the anger around the world, the era of cheap fuel has ended - Leading Articles, Opinion - The Independent
Governments around the world ought to be explaining to their citizens that the era of cheap fuel is over. The present spike might (indeed probably will) subside, but global demand will not fall back significantly, nor will pressures on supply.
fuel  oil  environment  politics  economics  Independent  news 
may 2008 by petej

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