I also concure bermuda that enegry bulletin is a must read for anyone interested in oil.The real important things about the stories in the article bermuda has listed is that in a few years everyone will know about the oil crises it is just that most will be learning the real hard way.
Yes, IMO oil has, and will continue to go up in price. So companies with oil, natural gas and coal reserves make a good initial investment and many of these have provided excellent returns in the last few years. However, the cost of extraction is booming also and the next step is to focus on who the oil companies are paying and where the money is flowing to...
Hi guys, Yes I must say the reading I have done on the theory of 'Peak oil' and other energy alternatives by Simmons is some of the most interesting reading I have done in a while (ok so I dont read to much). Certainly is an eye opener as to the challenges the world will face in the coming years. I guess while all of us are investing in oil companies and trying to profit from the situation it might be too easy to focus on these theories. Afterall it could be years before such a crises is finally accepted by world powers and a new value of oil is established. I can honestly say im not entirely sure where us investors stand if the world goes into a major recession or depression. Everybody will still need oil so I guess there is a limited downside but the volume and margin is going to be influenced by a many number of factors.
I may have made and lost many a fortune by the time the world wakes up to the issues if indeed it ever has to. Volitile times ahead without doubt.
The biggest problem about the forthcoming oil crisis is that not enough people are aware of it and consequently not enough urgent work is being done now to avoid it.As a further consequence we (and certainly our children) will grow up in a world scrambling for energy in an uncontrolled manner that could lead to major recession and war.
As one analyst remarked "if you throw a frog into a pot of boiling water it will immediately jump out.....but if you gently heat a pot of cold water with a frog in it the frog wont realise it is dying until too late.The same goes for oil.If we just go with the flow ( reducing) then the world will realise the consequences all too late..
It is going to take 15-20 years to equip the world with alternative energy to cope with a reduction of oil.
OIL
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