Saturday, December 20, 2008

What effect does $32 oil have

1. It will destroy the supply for oil in a few years. Companies can hardly get any loans, they will definitely won't try to explore new oil at $32 a barrel.

2. It will halt all funding for fuel efficient non-fossil fuels i.e. solar energy, wind energy, hydro energy, ...

3. There is no point in buying a hybrid, at 1.54 a gallon a hybrid is not cost-effective for consumers.

4. No (alternative) energy source is cost effective compared to oil right now.

5. Big oil producing countries are going to have financial problems, some countries budgetted $60-70 oil (Russia, Middle-East). They will have to cut down costs in their country for health care, social security, welfare, infrastructure... A logical consequence: civil unrest, riots, ...


The WORLD NEEDS $100 a barrel OIL!

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