Global Warming (Assuming It's Happening) is a Blessing From God

[expat_panama]

This has happened before ... and there wasn't any gasoline for any money ... if you remember 30¢/gal, then you remember the OPEC oil embargoes ... gas stations closed ...

Right, some folks say the reason that the gas stations closed was because the world had run out of oil and there would never be any more oil any more. Others said the shortage was caused by Nixon's gas price controls.

My hope is that you're aware that whenever the government decrees a selling price lower than the market supply and demand price that there are shortages. When there controls were lifted there was plenty of gasoline from the rising prices which in turn led to a supply surge which brought about falling prices back down to where they were before the "crisis".

Please forgive the chart, I'm aware that many don't like numbers but my experience is that being happy with numbers makes me rich. Hard habit to set aside.

 

[expat_panama]

Oil is unlike other commodities. It’s used by everyone and there is no competition. It’s sold strictly by the affluence of the region priced accordingly. Oil companies will sell heating for example at a loss in some areas just to have it available then Jack up the price in others to maintain their overall profitability.

You're right about oil being unique as all commodities are distinct. Also, you're not acknowledging what I was stressing about time frames and that's fine too, It's good that we don't quarrel about minor points.

 

[Crick]

You're right about oil being unique as all commodities are distinct. Also, you're not acknowledging what I was stressing about time frames and that's fine too, It's good that we don't quarrel about minor points.

The real cost of drilling a hole a hundred feet deep in Oklahoma is enormously less than the cost of drilling one a thousand feet deep in a thousand feet of water in the middle of the North Sea. Oil is a finite resource and it is becoming more difficult to locate and more difficult to extract and process. The real cost of petroleum has gone up and will continue to go up in a roughly logarithmic manner.