Skip to main content

View Diary: Oil Price Predictions Revisited (12 comments)

Comment Preferences

  •  somethings to consider... (0+ / 0-)

    As I see it, the primary claim that Rubin has been making was that oil would hit "triple digit" pricing within 15-18 months.  This was at a time after the last price spikes and oil had declined to sub $60/bbl prices. He also said, a pattern of price spikes would be the more likely pattern. e.g. we hit mid $100/bbl and it goes down only to rise again and it would repeat until something changes the equation such as getting off oil as a primary means of energy in countries such as the United States.

    In his book, he also indicates what the economic consequences for our economy that these prices entail and that includes making it uneconomical for our system of trade arbitrage to continue.  That is very profound because our entire system of trade in the past 40 years is based on this.  It will also make conditions such as commuting from far flung suburbs un-affordable.

    I'm sorry Mr. Blades, but this only makes sense to me. For those who want the status quo to prevail, they would want this phenomena to not be true.  But the conditions and consequences that Rubin describes did occur for a time in 2008 and as I can see it will likely happen again as these price spikes return.

    Countries like Brazil, who have strategically moved their energy supply to biofuels have reaped the reward of being off the dependence of imported oil.  They save all of that foreign exchange and they can invest that in themselves.

    Like it or not, our world Is going to get smaller. Let's make the best of it.

    --Mr. President, you have to earn my vote every day. Not take it for granted. --

    by chipoliwog on Sun Mar 13, 2011 at 10:50:46 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site