We Are So Not Prepared For Another Oil Shock

Dollar Collapse ^ | 15 June 2014 | John Rubino

[Lorianne]

In one sense, energy doesn’t matter all that much to what’s coming. Once debt reaches a certain level, oil can be $10 a barrel or $200, and either way we’re in trouble.

But the cost of energy can still play a role in the timing and shape of the next financial crisis. The housing/derivatives bubble of 2006 -2008, for instance, might have gone on a while longer if oil hadn’t spiked to $140/bbl in 2007. And the subsequent recovery was probably expedited by oil plunging to $40 in 2008.

With the Middle East now lurching towards yet another major war, it’s easy to envision a supply disruption that sends oil back to its previous high or beyond. So the question becomes, what would that do to today’s hyper-leveraged global economy? Bad things, obviously. But before looking at them, let’s all get onto the same page with a quick explanation of why everyone seems so mad at everyone else over there:

[familyop]

No problem. We pump enough oil in the U.S.A. to supply the world forever a million times over.

North Dakota Pumps 1 Million Barrels of Oil a Day
http://freerepublic.com/focus/f-chat/3169070/posts

[Heh...little irony and humor there.]

[ChildOfThe60s]

All completely avoidable had Washington and most of the American people learned anything from 1973.

Over 40 years of doing nothing except listening to Liberal demagoguery and following its lunatic path. It didn’t work, so we did the logical (har har) thing and doubled down. True collective insanity.

[Enterprise]

We also haven’t learned to keep dangerous people out of our Country. If one tenth of one per cent of the Muslims in America decide to go ISIS, they could incapacitate our nation by attacking power and communications. That would be a shock we could not recover from.

[UCANSEE2]

Thanks for posting the article.

The information about why the M.E. is in a mess was quite interesting.

[The Antiyuppie]

“If one tenth of one per cent of the Muslims in America decide to go ISIS, they could incapacitate our nation by attacking power and communications. That would be a shock we could not recover from.”

Oh, we could. And before then, the “problem” would be over. Decisively and permanently.

[bicyclerepair]

WHAT IS THE DEPT. OF ENERGY FOR ?

It’s FAILED. KILL IT !

[henkster]

It’s not just liberal demagoguery. It’s Saudi oil money in bribes, regulation lobbying and lawsuits. Armies of lawyers to tie up in Court every effort to develop our own natural resources aren’t cheap. You can’t hire that many of them on grandma sending a check for $10 to the Sierra Club because she saw a sad looking photo of a polar bear in her People magazine. We’re talking REAL money, or should I say “Riyal” money. The Saudis have it and they are investing it.

[marsh2]

Wait until the heating oil crisis this winter. That, coupled with the EPA coal plant regulations will have a lot of folks in the north shivering.

The drought has already helped food prices climb - assisted by the manmade drought associated with the delta smelt, SONCC coho and other protected fish species. The cost of trucking/distribution will see prices climb even higher.

Will it challenge the wisdom of these draconian environmental regulations? Not on your life.

[Ticonderoga34]

Obama wants high gasoline prices. He said so back in 2007.

Make sure to tell people that Obama is on record wanting high gas prices when gas prices spike in the next few weeks. You can be sure that the media won’t tell anyone.

[gleeaikin]

Oil troubles ping.

[I cannot think of a name]

Another item I really need explained to me.

Several times in the past few months I have read stories about this group and that group wanting to lift the rules to allow us to begin exporting oil. Ostensibly because we are producing oversupply.

So how does a shortage in the rest of the world cause our prices to go up, if we have more than we need already?

This doesn’t infer that if the prices went up elsewhere, the oil companies would start gouging us here just because they could does it?

[upchuck]

Obama wants high gasoline prices.

I have a sheet of Avery labels in my truck. Each label says:

The average price per gallon on Jan
20, 2009 was $1.83. Had enough
Obama Hope and Change yet?

I stick on of these on the gas pump each time I fill up. Gotta get the message out.

[morphing libertarian]

where might a person such as myself get such stickers

[upchuck]

I created mine in Microsoft Word. The labels are Avery number 8160. The labels are 1” x 2 5/8” and there are 30 labels per sheet.

[morphing libertarian]

Thanx

[familyop]

"We also haven’t learned to keep dangerous people out of our Country. If one tenth of one per cent of the Muslims in America decide to go ISIS, they could incapacitate our nation by attacking power and communications. That would be a shock we could not recover from."

Technically inclined Americans should become more self-sufficient and cohesive then, especially in home energy and communications.

[familyop]

There are Americans and American’ts, you know.

[American Constitutionalist]

Oh yes, there will be a heating oil crises this winter in this country in much of the north and east coast with news reports of dead corpses laying all over the place since people won't be able to afford heating oil.
This can be blamed squarely on Obama and the Democrats and the E.P.A....... of course ? that's what they wanted in the first place.
To them ? much of " the people " are expendable.