LoneWolf Posted February 17, 2006 Share Posted February 17, 2006 We might all be more than a little worried at today's news that China and Iran are near to closing a deal which will box off the huge reserves in Iran's Yadavaran field. Oil Deal Oil markets are already struggling to come to terms with peak oil, which many analysts believe has already occurred. Peak Oil The Chinese deal with Iran might just be sufficient to set off a new price hike which, in turn, would put even more pressure on the already struggling energy markets. Furthermore, China holds enormous amounts of US Treasury bonds which, if sold off would threaten the well being of the US economy. The deal with Iran makes this more likely than not as both countries have been making noises about moving away from the dollar. Iran, in particular, is actively seeking ways to index oil against the Euro or some other currency other than the dollar. Both moves would likely devalue the dollar and send interest rates soaring. If this wasnt bad enough it would appear the US is becoming increasingly hostile in its attitude to Iran. It certainly isnt beyond belief that Iran might be invaded by the US and, given the massive investment China is making, who would be surprised if China went to Iran's assistance ? Worrying times indeed. Link to comment Share on other sites More sharing options...
Dave the Cardboard Box Posted February 17, 2006 Share Posted February 17, 2006 Worrying times indeed. Why? We have had our three or four hundred years at the top, the time empires usually last from start to finish. It's their turn now, the Chinese, Asians and Muslims. Good luck to them, they have had the bad times too long. We cannot stop it. So there is no point in worrying. Link to comment Share on other sites More sharing options...
Roger Smelly Posted February 17, 2006 Share Posted February 17, 2006 Why do you think Bush is looking away from the oil and more to other types of fuel. He want to take the power away from the arab states, who dictate who get's what. Have you noticed that there is new hybrid fuels coming out this will snowball in the next few years. There is talk of petrol being mixed with ethanol to reduce the stranglehold. Don't worry too much about the oil the oil giants are moving into new fields every year. Website Link to comment Share on other sites More sharing options...
LoneWolf Posted February 17, 2006 Author Share Posted February 17, 2006 Don't worry too much about the oil the oil giants are moving into new fields every year.Website Just a pity the whole western economy is based on oil. Link to comment Share on other sites More sharing options...
Roger Smelly Posted February 17, 2006 Share Posted February 17, 2006 Very true wolfy but look at dubai, it is spending vast sums on tourism because it knows that in 20 years time oil will become less and less popular. It needs tourism to keep the place going. Read a bit about how ethanol is made and how much cleaner it is. The oil Giants bought up all the good ideas years ago ready for when the oil runs out. Why do you think nuclear power is being thought about, there is new cleaner methods of nuclear power under development at the minute. Cold Fusion is also still getting massive research at the moment, they think it will be possible as time goes on. Website Link to comment Share on other sites More sharing options...
Bombay Bad Boy Posted February 18, 2006 Share Posted February 18, 2006 Cold Fusion is also still getting massive research at the moment, they think it will be possible as time goes on. Never mind 'cold' fusion, it would appear that plenty of people are experimenting with full-size fusion reactors. A quick google finds: http://www.iter.org/index.htm http://www.jet.efda.org/ http://english.people.com.cn/200601/23/eng...123_237513.html (China! for < cost of Pulrose! ) Initially, steam engines were huge, then they came down in size sufficiently to build vehicles around (I think you can tell where this is going..when there's no more oil, it'll mean nipping down to Mylchreests for a fusion-powered DeLorean ) Link to comment Share on other sites More sharing options...
LoneWolf Posted February 18, 2006 Author Share Posted February 18, 2006 I do hate to say this guys but there is a lot more to Peak Oil than just a minor inconvenience to car owners ! The fact is, the entire western economy might, or probably will, slip into major recession. China is not helping. It has entered into an agreement with Iran, for example, which has the potential to precipitate a crisis of major proportions. Iran, in turn, has ambitions to set up an Oil Bourse based on the Euro rather than the dollar. This ambition has been made more likely by China's actions and the effects on the US economy would be catastrophic. If you think that wouldnt make a major impact on your lives, well ok, but you would be so wrong. Iran, you may have read, has made threats to Israel which by any standard you might care to imagine are extreme. Iran has also embarked on a programme to produce miltary standard enriched uranium. The highly likely result of this development is that Israel will be forced to attack the Iranian nucleur installations. if you dont understand why that should be well ok ! You might ask what that has to do with Peak Oil. Ok. It is likely that China, who have made an enormous investment in Iran, will move to protect its investment. You might also find the US will become involved. So there are worrying implications for world peace. There are also worrying implications for the western economy and by association our own well being here on the septic Isle. Hope Im wrong Link to comment Share on other sites More sharing options...
Alias Posted February 22, 2006 Share Posted February 22, 2006 Why do you think Bush is looking away from the oil and more to other types of fuel. Looking away from arabian oil maybe, but Bush has his feet firmly rooted in oil when it suits him.. There is talk of petrol being mixed with ethanol to reduce the stranglehold. Ethanol can only be blended into normal petrol up to 15%. What crop exactly are you going to make this ethanol from? It's ok for Brazil, where they get sugarloads of sugar cane crop, but it takes a lot more coin that sugar cane. Link to comment Share on other sites More sharing options...
Roger Smelly Posted February 25, 2006 Share Posted February 25, 2006 Well the Corn is what most of the producers use. have u read anything on the subject ? also ethanol can be mixed at 85% ethanol 15% petrol. ignorance is bliss Link to comment Share on other sites More sharing options...
BenFairfax Posted April 16, 2007 Share Posted April 16, 2007 LoneWolf: Iran, in turn, has ambitions to set up an Oil Bourse based on the Euro rather than the dollar. The Iranian's are also asking the Europeans to pay for oil in Euro's, the Japanese still pay in dollars and naturally the US does. Now at present you have recycling of petrol dollars to the tune of $400bn a year, in US treasures and similar (IOUs by another name). Now just think what would happen to the dollar if the US was forced to sell dollars, buy Euro's in order to purchase oil. Even if only Japan changed to Euro's, the market would react by selling dollars. However, the US will do anything to prevent this from happening. Roger: have u read anything on the subject? What I do know is that at present prices it costs $120 to produce the equivalent amount of bio fuel, as a barrel of oil. Link to comment Share on other sites More sharing options...
ans Posted April 16, 2007 Share Posted April 16, 2007 also ethanol can be mixed at 85% ethanol 15% petrol. What a shame it's corrosive. Link to comment Share on other sites More sharing options...
Tugger Posted April 16, 2007 Share Posted April 16, 2007 I'd always thought that the pricing oil in dollars thing was a red herring and a conspiracy theory: http://web.mit.edu/krugman/www/seignor.html Link to comment Share on other sites More sharing options...
BenFairfax Posted April 16, 2007 Share Posted April 16, 2007 I'd always thought that the pricing oil in dollars thing was a red herring and a conspiracy theory: http://web.mit.edu/krugman/www/seignor.html It would be if the dollar was not the reserve currency of the world and the FED did not have a monopoly of creating dollars. The number of dollars in existence is not constant, just as the number of GBP etc is not constant (just look at the money supply figures on the inside back page of The Economist journal). However, the US can buy key commodities in a currency that it has a monopoly on creating and it can in reality create dollars out of thin air, where as the Bank of England can create GBP but in order to buy oil on international markets it must first buy dollars, by selling pounds. The issue of devaluing currencies in the article is another issue. Just about all currencies are being de-valued by creating debt instruments (i.e. GBP/USD etc) which funds trade/budget deficits, this is after all the ultimate source of inflation. But this is another story.... Link to comment Share on other sites More sharing options...
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