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Usually, it is the other way around. Technology exhaust every abundant resourse it touches. Air is the only abundant resource that remained.
Who would apply technology (or money) to an abundant resource ? That would be a bad investment decision.
Oil depressed because demand has not expanded as rapidly as expected and OPEC is pumping more to keep the price depressed for a couple of years to kill Fracking companies (and perhaps to hurt Russia if you believe in conspiracies).
So where is all that speculative capital that drove commodity prices up in 2008-?, ripped us off for no compelling reason before shifting elsewhere? Who is 2015 sucker raided by loose capital seeking easy returns?
Last edited by RememberMee; 12-09-2015 at 02:55 PM..
folks only got ripped off if they complained about the hand they were dealt and didn't play the hands they were dealt .
with energy costs the 2nd biggest expense next to housing costs many folks right here hedged their costs not by complaining about high oil prices but by hedging against them .
i was a buyer off and on back then of USO . every dollar oil went up i made more then enough to cover any price increases .
when life hands you lemons the smart folks sell lemonade
So where is all that speculative capital that drove commodity prices up in 2008-?, rip us off for no compelling reason before shifting elsewhere? Who is 2015 sucker raided by loose capital seeking easy returns?
Who would apply technology (or money) to an abundant resource ? That would be a bad investment decision.
Oil depressed because demand has not expanded as rapidly as expected and OPEC is pumping more to keep the price depressed for a couple of years to kill Fracking companies (and perhaps to hurt Russia if you believe in conspiracies).
That is how it all starts. People apply technology to an abundant resource (mammoth, fish or oil) and drive it into extinction. Abundant doesnt mean easily accessible (except air). Easy access means certain extinction, we have no internal brakes.
Where is speculator' money responsible for $5/gallon gas in 2008? Supply/demand had little to do with the price hike that jump started fracking frenzy. Where is the money?
That is how it all starts. People apply technology to an abundant resource (mammoth, fish or oil) and drive it into extinction.
Technology found that petroleum was a great substitute for whale oil and prevented the extinction of whales.
The jury is out on what actually drove the mammoth to extinction, but it sure wasn't the folsom point ( technology). It was probably global warming. You know; the warming that caused the glaciers to recede from most of North America(?)
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Originally Posted by RememberMee
Abundant doesnt mean easily accessible (except air).
Yeah, tell that to the citizens of Beijing. "Air" is pretty hard to get. People actually pay for "air" shots there. Neat.
Quote:
Originally Posted by RememberMee
Easy access means certain extinction, we have no internal brakes.
Right. First you complain that people are using too much of stuff then you complain later that the stuff is priced too high.
Quote:
Originally Posted by RememberMee
Where is speculator' money responsible for $5/gallon gas in 2008? Supply/demand had little to do with the price hike ...
Yes it did. Supplies were being diverted to China in a wholesale fashion and it caused restrictions in the supply here.
Also, $5/gallon only happened in CA and that was a self-inflicted price due to refining regulations. It only got to $4 and some change which is less than the inflation-adjusted price of 1980. Big deal. It only hurt people with big SUVs. It's a choice.
Supply/demand has everything to do with price. Fracking generated increased supply and now you have low gas prices. Enjoy the lower prices whilst you "waste" this resource.
OnTopic: Increased supply has reduced prices of oil and oil-related stocks and oil-related products such as gasoline and natural gas et al. Later, increased demand will increase the price of oil and the cycle will continue.
You act like it is unnatural for prices to rise and fall, but in nature this sort of thing is common. Economics is nature.
The blood bath continues. OIL ETF down another 1.4% today.
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