Cheap energy is the key to productivity. Where the cost of energy is lower, productivity is greater. This is true worldwide. We begin by looking at energy costs and production in the USA. The Presidential Debate – Candidates Agree on Gas & Oil Last night the third and final debate between Romney and Obama took… Continue reading Productivity in the USA is Increasing – Dramatically
Tag: oil
Gas and Oil Prices Will Weaken – follow up to June 27/12 blog
Cheap Energy and Higher Productivity In our June 27, 2012 Blog, we discussed how abundant newly recoverable supplies of shale gas, increased reserves in the ground in North America, and the retreat of the ice cap, would all contribute to a permanent lessening of energy prices. We further commented that lower energy prices would produce… Continue reading Gas and Oil Prices Will Weaken – follow up to June 27/12 blog
Is Oil Overvalued? Or are we just seeing temporary weakness in the Price of Oil. The Economic Fallout
Canadian Oil Sands Prices as an Indicator In recent months there has been an anomaly between world oil prices and the price of oil coming out of the Canadian Oil Sands. Because of transportation issues Canadian heavy oil has been receiving less value than the world price of oil. They say that this is a… Continue reading Is Oil Overvalued? Or are we just seeing temporary weakness in the Price of Oil. The Economic Fallout
Stubborn Beliefs That Devastate Portfolios
Stubborn Beliefs That Devastate Portfolios Having heard so many diverse opinions at the NY Hard Asset Show, it occurs to me that there are some supposed “universal truths” held by investors that could affect investments. The issue is that the market over-reacts to expected events, and then over-compensates. Often, by the time investors have positioned… Continue reading Stubborn Beliefs That Devastate Portfolios
U.S. report: Oil imports down, domestic production highest since 2003
In recent blogs, I talked about whether the common belief that oil prices have to increase could be a fallacy. The following is today’s reprint of an article in the Los Angeles Times. It seems that the world of imported oil and high prices may be about to change. U.S. report: Oil imports down, domestic… Continue reading U.S. report: Oil imports down, domestic production highest since 2003
Is Oil Overvalued? Could the USA become Energy Sufficient?
The Amount of Oil Used by North America In a recent blog, I talked about how shale gas is changing North America’s energy needs, and how that could change the way that the world works. The effect is starting to be felt. A quote from “MISH’S Global Economic Trend Analysis” Another Plunge in 3-Month Rolling… Continue reading Is Oil Overvalued? Could the USA become Energy Sufficient?
The Rapid Changing World of Investments – the Flow of Oil Money to the Middle East
The Changing World of Investment In my last blog, I talked about how rapidly investments can change in scope and importance. I talked about the bountiful supply of shale gas coming on stream, and the profits of large equipment manufacturers. The essential point was that investors could never simply “Buy and Hold”, but had to… Continue reading The Rapid Changing World of Investments – the Flow of Oil Money to the Middle East
Investing Reliance on Outdated Theories Including the Peak Oil Theory
Last blog talked about the speed of change in today’s world, and being aware of theories that no longer apply. As an example, the Peak Oil Theory was discussed from a different vantage point. The US reliance on oil imports may be about to change, and about to change quite dramatically. Oil imports in the… Continue reading Investing Reliance on Outdated Theories Including the Peak Oil Theory
The Life Cycle of Securities & The Peak Oil Theory
President Obama Says in a Speech this Week That the US Recovery is Being Throttled by the Rising Cost of Gas at the Pumps. Apparently the cost of a gallon of gas has risen from $3.17 to $3.40 from the start to end of 2011. Some say that he is setting the stage for bashing… Continue reading The Life Cycle of Securities & The Peak Oil Theory
The Scary World of 1984, Oil’s Inevitable Rise in Price & Why
Science Fiction Becomes Reality For those that read the quaint science fiction book “1984”, the scenario painted was an all-knowing invasive government that tracked every citizen’s movement, and forced all persons to adhere to a strict code of conduct that perpetuated the government. At the time the book was published, it was considered scary, but… Continue reading The Scary World of 1984, Oil’s Inevitable Rise in Price & Why