70 buck a barrel oil matched by rising airfares...talk of rationing.

[jetflyer]

LOL great post. And to think for a while I was getting more optimistic. But lately I have seen so much bad news going on in country after country on their oil production.

Dang I really do need a beer now!

At www.theoildrum.com a member called westtexas has a great explanation of how the oil exports could decline at a faster rate than the decline of oil production. This is because the oil exporters will be increasing their own consumption in the future at the same time that their production is falling. He said it so well that it made sense to even me. We could be in for a ride competing with other countries like China for those last remaining oil exports of the world.

Bottom line is the price is going up, and we're gonna have to live with a lot less year over year really soon.....

Maybe even occassional severe turbulence??

Dang I need an ejection handle!

Jet

 

[FN FAL]

then four power-genrating plants shut down unexpectedly? Reminds me of the Motels song, "Suddenly, Last Summer".

HOUSTON (AP) -- Witheringly hot temperatures and an electricity shortage forced power utilities around Texas to conduct rolling blackouts for several hours Monday.

As temperatures climbed into the upper 90s - and even to triple digits - thousands of Texans found themselves without power as energy companies heeded an emergency call from the Electric Reliability Council of Texas, which runs the state's electricity grid. Police rushed to intersections to direct traffic during the afternoon rush hour.

As much as 15 percent of the state's power supply was already off-line for seasonal maintenance to brace for the summer's energy usage peaks. Then four power-generating plants shut down unexpectedly amid the stifling heat, said ERCOT spokesman Paul Wattles.

By Monday evening, with the help of the rolling blackouts, ERCOT said operations were back to normal.

Typical usage for Texas in April is about 40,000 megawatts a day, but the state peaked at 52,000 megawatts on Monday, Wattles said.

A recorded high of 101 degrees at Dallas-Fort Worth International Airport broke the previous high of 94, set in 1913 and matched in 1925, according to the weather service. Temperatures reached 107 degrees in Laredo.

ERCOT said the rolling blackouts were needed because the power grid had to decrease its load by 1,000 megawatts on Monday.

A megawatt is enough electricity to power about 210 homes for a year.

"The good news is, (the blackouts) worked," Wattles said. "This prevents region-wide outages. It isolates the outages so a few people share the pain to avoid a region blackout like we had in the Northeast in 2003."

The rollouts were limited to the ERCOT grid, which provides electricity to about 80 percent of Texas.

Traffic backed up at intersections in Grand Prairie, just west of Dallas, and in Tyler in eastern Texas during the afternoon rush hour.

ERCOT urged customers around the state to curtail their electricity use.
The weather service said Texas should begin to see more normal temperatures in the 70s by midweek.

 

[whaleroast]

In the late 19th Century, our political leaders argued about gold and silver reserves. Presidential elections were decided by this debate. William Jennings Bryan argued in his "Cross of Gold Speech" that the farmer was the most vital element of society. 'Free silver is the cowbird of Populism.' What was a populist? Someone who believed in government controlled transportation and telegraph. Someone who believed that railroad companies had to give back the land they had purchased from the land owners on the plains. They believed in a progressive tax, Austrailian ballot (secret ballot), and a strategy of recall if 25% of registered voters signed a special petition, a special election would be held to decide if the elected official could keep his job or lose it to another official. They also believed in having a one term president. What does this tell us today? Bryan lost the election of 1896 because American's are inheirently business oriented and fundimentally dismiss the idea of government controlled business. Free enterprise and capitalism make this country great and will continue to do so. Rising oil prices are simply the result of a free market economy, not the conspiracy of governments trying to line their pockets.
How did the populists react to their loss of 1896. They assassinated McKinley at the Worlds Fair. Now, I don't know about you but I tend to think that killing a president is a big deal. This is an act of terrorism. It's a shame this event isn't taught any more in school. Perhaps more parables could be drawn from that event to compare to the events of today. The terrorists tried hard to get their way, but our system again showed how perfect it was and McKinley's VP, Teddy Roosevelt took the reigns and proceeded to take our country to heights that it had never imagined. We fought foreign wars in the Phillipeans, Cuba, Columbia and Panama. We delivered democracy to areas that had previously known only dictatorship or tyranny.
What is my point...it's simple. The rising of oil prices is not a conspiracy designed by greedy leaders bent on whirlpools and backrubs. Well sure, everyone is greedy. That is the nature of capitailism. What makes the system great is the desire to acheive greatness. If we were populists or democrats and we equalled the playing field, there would be no measure of greatness. The problem is that when these so-called equalizers don't get their way, they resort to terrorism, be it environmental or political. That is the ironic aspect of our country: we allow free expression in almost every sense, but when democracy doesn't work for a minority of the population, they feel it is right to resort to terror to acheive their causes.
The problem with the airline industry is reflected in this sentiment. Government intervention destroyed our industry in the '70's. The gold and silver industry was forced to mesh and create low cost, government controlled skies that bankrupted the system. Thank you Mr. Carter. It's a shame that a minority of Americans bankrupted our system then and continue to try and do so today. And while people cry and complain about the cost of oil, they do so knowing that airlines are forced to lose money every time they fly a plane because the government tells them that this is the way it has to be.
People, accept oil prices the way they are. This is the best result for capitalism...what you should be screaming about is the government controlled industries.

 

[B-J-J Fighter]

The person on my avatar is my girl Next Door Nikki. Do a search for her, you will find some very revealing photos of her on the net.

 

[jetflyer]

Thanks for the headsup of photos of her being on the web and that I can search for them.

I'll have to get right on that (in more than one way)

Jet

 

[FN FAL]

And to think for a while I was getting more optimistic. Jet

Move. Leave your state if it begins and ends with a vowel, is on the border with Mexico or Canada or is Missouri.

This week in the news:

Illinois Governor George Ryan faces 95 years in corruption conviction.

Canadian sneaks across border steals guns and uses Registered Sex Offender list to begin a vigilantism murder campaign.

Mexican border towns? Where do you start?

Oklahoma man kidnaps girl for murder, rape and acts of cannibalism.

Missouri Pork Institute offers students in-depth look at pork.

Indiana courts determine unmarried same sex couples can adopt.

Iowa mumps epidemic.

Utah school books the wrong Jon Stewart for annual gala.

Indiana a report shows that Indiana students lead the nation in being denied federal aid for college.

Ohio dad convicted in the syringe induced pregnancy of his step daughter.


​

It's not too late to save yourselves...move out while you can!








:nuts: :laugh:

 

[A Squared]

Move. Leave your state if it begins and ends with a vowel,

I'm in Alaska. where do you suggest I move, and more to the point, why?

 

[jetflyer]

This might interest those wondering if Saudi Arabia is past their peak oil.


These are the Saudi Arabia and OPEC production numbers for past months.
Oct 04: SA = 9.508 mbpd, Opec = 30,228mbpd
Nov 04: SA = 9.450 mbpd, Opec = 29,067 mbpd
Nov 05: SA = 9.458 mbpd, Opec = 29,965 mbpd
Feb 06: SA = 9.394 mbpd, Opec = 29,713 mbpd

Saudi Arabia has also been increasing the numbers of rigs this entire time and production as you see has still been declining. They say they are pumping at full capability right now as well. They say they're going to bring on new oil soon. They also say "Don't worry, We have enough oil to power the world for decades to come."

Looks like Matthew Simmons might have been correct about Saudi :0:bawling:

Jet

 

[Dangerkitty]

Oh and Danger read my sentence again. It was definitely poorly written, but what I meant was I don't see the next depression being deflationary but inflationary if we have one.

Adios,
Jet

Ok, thats cool. Then answer me this. Why would people flock to precious metals during anytype of depression?

 

[jetflyer]

Danger,
This time will be different because of the U.S.'s situation.

Inflation is the difference. A downturn will have inflation in the future.

Bernanke says he will allow inflation instead of deflation by printing money.

Peak Oil, Peak Gold, Peak Silver, Peak commodities. The world is simply reaching a max on how much there is to get out of the ground on everything.

The U.S. trade imbalance is over the critical 6% and this is unsustainable, the U.S. dollar has to eventually correct. This will cause inflation as the dollar falls in value and it takes more dollars to buy those Chinese goods or other imports.

Plus commodities are traded on world markets. If the U.S. dollar goes down then commodities essentially stay the same price and will go up. Plus people will try to hedge against inflation by getting into commodities. People don't want to lose wealth to inflation.

If the inflation is at 7% and the stock market returns 6% you lost money.

Plus if you look at how the CPI is figured now compared to how it was figured back in the early Clinton years then you'll see that we would now have about 7% inflation instead of the 3% they're publishing. The gov-a-mint changed how they figure inflation and it is bogus. They want inflation. They want it to make their debts smaller so the government doesn't go insolvent.

I will try to answer more later Danger gotta go back to work. I really think we'll see heavy inflation in the future. I will give a much better answer later.

Jet