Oil at $62. They predicted serious economic problems at $70

[The_Casual_Observer]

Thats about 11% above where we are today.How much longer can this retail/real estate economy shrug off hyper inflated energy prices?

[htuttle]

1. For as long as the rubes keep buying up our Treasury bills

[Ernesto]

4. In Culleeforneeya, I just paid $2.99.9 for diesel feul......

Can't help but wonder diesel is higher than premium gas. I'm just glad that my pick up gets 20 mpg!
(ON EDIT: this post is a reply to the original)

[AX10]

2. If it hits a hundred dollars in the winter, expect an 06' recession.

[EVDebs]

9. The rest of the world has learned to hedge against falling dollars with

higher oil prices.

With the US economy in the toilet because of the profligate Republican party and its fiscal habits not to mention lies about war and the economy, the rest of the world since the '80s has discovered that since the US will let the dollar fall while waiting for oil production and prices to fall will be the US response.

Now that world wide demand for oil, now around 85 million barrels per day, is expected to reach 120 million barrels per day by 2020

http://www.econ.nyu.edu/dept/courses/gately/How%20Plausible%20is%20the%20Consensus%20Projection%20of%20Oil%20Below.pdf

but the price projections are laughable ! This report was from July 2001 btw. I want to know, what were these guys smoking ? The report only seems to vindicate Hubbert's Peak arguments that the Saudis have been lying about their reserves for all these years...

[JanMichael]

12. Heating Oil and Natural Gas will skyrocket.

This is some seriously bad news for northern climates...

[ChairmanAgnostic]

3. it is a mistake to think that they are hyperinflated.

These are the baseline prices.
The dollar is about to fall, and fall hard. (translation, oil prices rise)
China is growing much faster than we, and they will be as hungry for energy in the very near future, per capita. (translation oil prices rise)
because of global warming, energy demands will increase. (translation, oil prices rise)
there is no competition and none in the foreseeable future to big oil (translation, oil prices rise)

it is a pretty simple picture. And ugly, especially if you park a humvee in front of your house.

[HockeyMom]

5. Fueling inflation

Goods must be shipped from here to there. Ergo, as fuel/shipping costs go up, they are passed on to the consumer.

I HAVE noticed that grocery prices are going up, up, up.

[aquart]

6. Looked at food prices lately?

They're shooting thru the roof.

[EVDebs]

7. What pisses me off is that metal air fuel cell technology is going to Asia

and not being kept here for manufacturing jobs. Look at the www.powerzinc.com , the www.arotech.com and www.evionyx.com sites dealing with zinc and metal air fuel cells and you'll see that this technology could be used right here at home.

Zinc air fuel cells were supposed to be displayed at the Sydney Olympic games in 2000 but I didn't see much media attention to them. Now I see that Powerzinc is going to make a big splash with them during the China 2008 games ! At the same time the US is spending big bucks on Hydrogen fuel cells, which use platinum as a catalyst and that platinum sells for $850/oz. while zinc for example sells for $0.50 per pound. The oil companies apparently have sandbagged the US into this Hydrogen PEM fuel cell system since it is a "bridge" fuel that can continue using fossil fuels (gasoline, natural gas, etc.) until we decide to switch to zinc or other metal air fuel cells. At that point we should be entirely economic vassals to the Chinese.

Pacific Rim countries (the US, Canada, Mexico, Peru, Australia, and yes, China) all have vast resources of zinc. We could potentially form the basis of a non-petroleum trading system. I just feel that we should let those jobs being displaced in Michigan get first dibs on building Zinc Air Fuel Cell powered vehicles FIRST. GM and the United Auto Workers should be working together on this. The US could be exporting cars TO ASIA instead of the other way around IMHO.

What do you DUers think ?

[LVdem]

11. I have never heard of powerzinc until your post...

but it seems like a smart idea. The administration has their head in the sand concerning energy and peak oil. Alternative fuels should be heavily explored especially these zinc fuel cells if they work.

[EVDebs]

13. LLNL knew years ago but it looks like hydrogen PEMs superceded it

http://www.llnl.gov/str/News1297.html (this is a recent post, the original has been removed apparently by LLNL):

""Zinc-air technology moves toward commercialization

Zinc-air fuel-cell technology, long a promising source of clean energy and stored-energy recovery, begins a move toward commercialization with the recent signing of a Memorandum of Agreement between Lawrence Livermore and Power Air Tech, USA, a consortium of Australian companies. Discussions are under way to bring other U.S. companies into the consortium.
The next step is a Cooperative Research and Development Agreement between the Laboratory and private industry, which could mean about $100 million of industry funding-$30 million for further research and development on a zinc-air fuel cell and its zinc recovery unit at Lawrence Livermore over the next four to five years and an estimated $70 million for commercialization and manufacturing applications of the refuelable zinc-air technology and recovery unit.
Zinc-air fuel cells mix zinc pellets and electrolyte with air to create electricity. They create five times as much power as lead-acid batteries of the same weight. The Livermore design is unique because it is refuelable, and the spent zinc can be recycled into zinc pellets.
The agreement initially is intended to commercialize several kinds of units: large units for utilities to meet peak power demand, small units as an alternative to gasoline and diesel generators for uninterruptable power supplies, units for heavy and lightweight vehicles, and large uninterrupted power supplies for hospitals and airline reservation systems.
John Landerer, on behalf of Power Air Tech, USA, noted, "We will make every effort to have this technology on display in Sydney by the time of the 2000 Olympic Games."
Contact: John Cooper [phone] ([e-mail]).""

Take note in the Powerzinc.com website that the Chinese will have ZAFCs running buses etc. Let's hope the media takes note of this; I just want jobs created in the US this time around, that's all ! Btw, the zinc oxide pellets use a postassium hydroxide catalyst. Very elementary set-up when you think about it.

[Carolab]

8. They predicted it at $60/barrel, actually. n/t

[EVDebs]

10. Goldman Sachs postulated a $105 per barrel price

www.energybulletin.net/5017.html

"During 1980-1981, gasoline spending in the United States corresponded to an average 4.5 percent of GDP, 7.2 percent of consumer expenditures, and 6.2 percent of personal disposable income, Goldman said. ``Our new $50-$105 per bbl super spike range perhaps conservatively corresponds to gasoline spending in the United States that reaches 3.6 percent of forecasted GDP, 5.3 percent of consumer expenditures, and 5.0 percent of personal disposable income. Goldman said that were it to assume gasoline spending needed to reach 1970s levels to destroy demand, its upside super-spike estimate would be $135 per barrel for New York crude.

``Perhaps the ultimate answer to high how oil prices need to go before demand destruction occurs is derived from knowing when American consumers will stop buying gas guzzling sport utility vehicles and instead seek fuel efficient alternatives.

``Based on our analysis of gasoline spending and the economy noted above, we estimate that U.S. gasoline prices may need to exceed $4 per gallon.''

Imagine, $4 to $5 per gallon of gas...

[Mr.Green93]

14. Come on 70

Bring down this house of cards before 06.

[AX10]

15. Hear, Hear!

:kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick::kick: