Coffee Shop Wisdom; What Oil Shortage?
Good Morning
We discussed the fact that thousands of Americans owe far more on their SUVs and big diesel pickups than they are worth…a lot more. Not being able to sell a vehicle and not being able to afford to drive it presents a problem under most circumstances, but this isn’t most circumstances. Far higher levels of complex discussions have taken place at the coffee shop than this, and those issues were resolved before
It was Ralph who broke into new territory when he calmly asked, “What oil shortage?”
Every town has a guy like Ralph, not only does he not know much, it’s been rumored around here that Ralph doesn’t even suspect anything.
“There’s no oil shortage,” he continued, “Just like in the 70’s, oil will come back down.” Taking a chance that Ralph may unload some unpublished scientific data on me, I said, “The U.S. produces 40% less oil today than did in 1970. The oil supply is gone like the Studebaker, Ralph, and it’s not coming back.”
After a lengthy diatribe of how GM and Ford forced Studebaker out of business back in 1966, Ralph said, “I bet they haven’t found 10% of the oil in the
Being a glutton for punishment, I foolishly asked, “Why, with oil being $136 per barrel, wouldn’t the oil companies go find the other 90%?” Ralph reared back with an all knowing smirk and said, “The government and the environmentalist’s won’t let them.”
At this point I demonstrated that the person who said, “Never argue with an idiot, they’ll drag you down to their level and then beat you with experience,” knew of what they spoke, as I attempted to combat Ralph’s theory.”
“But Ralph, if the
Maintaining the perpetual smirk, Ralph poured himself another cup of high test and slowly stirred in four teaspoons of sugar as he considered his rebuttal. Looking slowly around the coffee shop as if searching for spies, Ralph leaned forward and half whispered, “They’re takin’ over.” “Who’s taking over Ralph?” I asked. “The same ones that bought up the 200 mile per gallon carburetor back during WWII.” Ralph’s relatives whole heartedly agreed again.
We went on to discuss the very real possibility of martial law and the fact that the mortgage crisis was orchestrated in order for the government backed lenders to take over the housing in the U.S. so that they could
Ain’t we something?
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Hi Mike..
Did you mean “martial” law ?? The things a spell checker won’t tell you..
But, I still don’t believe bankers suddenly forgot that people who can’t afford the down payment, usually can’t afford the house.. Why, the housing crisis?? I dunno, but they sure drained a lot of equity from home owners, and got it into the economy..
WmA..
I suppose I got Marshal Dillon confused with Martial Bush huh? The thing that I have lost that I miss the most is my mind!
The housing thing was nothing more than a corrupt governments attempt to reinvigorate the economy. After all, industry and farming are down the tube.
I explained in my book why the housing boom would bust, long before it did. Government fed the housing boom Miracle Grow through low interest, low down, interest only, and low qualifying standards. After it blew up, it was the bankers fault.
Can’t say it enough, we have reached the limits of growth while at the same time maintaining our present living standards…that simple, that easy.
Great site Mike. I am sitting here enjoying my morning coffee clicked a link on housing doom and found this post. I had not thought about a gas hog bubble or crisis. Lots of those will be going back to the bank. As far as the peak oil goes, I agree with peak conventional oil. But the EIA says there is 800 billion barrels of recoverable oil in our nation’s oil shale. That’s enough for hundreds of years.
They say they can extract it starting at $40-$60 a barrel then the cost will slowly go down. Go check out this organization and read about S.2958, an Energy Act that has been introduced. We need to do this before its too late and our economy suffers irreparable harm:
http://www.AmericansForJobsAndEnergy.org/
Along the lines of the 100mpg carburetor, do you remember the article Car and Driver had about a new engine the size of a watermelon that got crazy mpg? I think it was the PoweRRing.
TTFN
Dean
Sorry about the double paragraph there? Don’t know how that happened. I found an article about that watermelon engine:
http://outside.away.com/outside/magazine/0899/9908jocko.html
Dean,
Thanks for commenting. I live in the middle of oil shale country and know many of the people who work in that industry. I wrote an article about it a little while back.
We are a minimum of 10 years out on any commercial oil shale production and we must remember that they have been trying to produce it for some 35 years without success.
It took the Canadians more than 20 years to refine tar sands and even today they produce around 1,000,000 barrels per day TOTAL. They are hoping to increase that to 2,000,000 by next year.
Also, oil from shale is a synthetic and does make good gasoline. It will make diesel, lubricants, asphalt, plastics, etc.
Oil shale is, like you say; a long way out. And the cost if it can be done (don’t think there is enough water in Colorado to do it) will be EXTREME. Been in the business for over 30 years. - bb