Global Economy Bursting?

[William K]

Inflation Fears Up, 87% Paying More for Groceries

http://www.rasmussenreports.com/pub...flation_fears_up_87_paying_more_for_groceries

When perception becomes reality ...

Who needs perception. When reality finally hits over 70% of the public no one will care about perception

 

[Restrain]

They're forecasting $5 gal for gasoline by Memorial Day.

BOING!

 

[Terrel L. Shields]

the declining value of the dollar could push inflation so rapidly, oil prices could zoom thru the $140 a bbl level without even slowing as it shot towards $200 a bbl...or simply put... we could easily top $6 per GALLON for gasoline by years end..

And I believe I said this back in January... the only hope is that Libya will calm down, and the traders (speculators) will finally lose their hedge, perhaps mid-summer, like last time (2008) and prices will fall somewhat, but not back to $40. I would think getting crude back below $100 within the next year is a tough sell.

As for the energy industry, on shore, drillers are shifting from drilling shale gas to drilling "liquids rich" [oil] plays like the Eagle Ford (S. Texas) and the Bakken (Dakotas) The new talk is the Niobrara of E. Wyoming. Again, only high oil prices are fueling these plays.

Passing thru S. Ill. and S. Ind. last week I noted many of those old shallow wells are slowly pumping. Years ago, many were idle for weeks at a time. It simply wasn't economic to pump them. Today, it is and that one or two bbl. of oil per day translates into $200, well above the pumping costs. That's a good thing but not nearly enough to stop this high fuel cost scenario until our government gets serious about converting the fleet of vehicles to natural gas...perferably with parts built in the U. S. by U. S. workers.

 

[Big ole Boy]

...I was mistaken about being able to make a birdie yesterday ...... I hit three distorted shots on a par 5 and made an Eagle for the first time in my life.

... I was too negative ....

 

[Randolph Kinney]

Germany Reignites Debt Concerns With Greek Warning as Portugal Seeks Aid

http://www.bloomberg.com/news/2011-...debt-defying-efforts-to-snuff-out-crisis.html

Lets pretend that sovereign governments have the will to cut sending, raise taxes and pay back bondholders. All those free programs will be done away with - yeah right.

 

[William K]

And I believe I said this back in January... the only hope is that Libya will calm down, and the traders (speculators) will finally lose their hedge, perhaps mid-summer, like last time (2008) and prices will fall somewhat, but not back to $40. I would think getting crude back below $100 within the next year is a tough sell.

As for the energy industry, on shore, drillers are shifting from drilling shale gas to drilling "liquids rich" [oil] plays like the Eagle Ford (S. Texas) and the Bakken (Dakotas) The new talk is the Niobrara of E. Wyoming. Again, only high oil prices are fueling these plays.

Passing thru S. Ill. and S. Ind. last week I noted many of those old shallow wells are slowly pumping. Years ago, many were idle for weeks at a time. It simply wasn't economic to pump them. Today, it is and that one or two bbl. of oil per day translates into $200, well above the pumping costs. That's a good thing but not nearly enough to stop this high fuel cost scenario until our government gets serious about converting the fleet of vehicles to natural gas...perferably with parts built in the U. S. by U. S. workers.

Unfortunately no one could predict the situation in Japan. The worse the nuclear crisis there gets the more people and their governments around the world will turn from nuclear power.

Why do I get the feeling Libya is turning into a ripple in the ocean during the start of the Hurricane season.

 

[Restrain]

Oil prices are not driven by US consumption, as consumption has declined over the past month commensurate with the increase in price of gasoline. Further, we actually are setting on very high levels of inventory. Speculation and overseas demand are more important in the price of oil. Natural gas prices, however, are more driven by US demand, so the disconnect between oil and natural gas prices per mbtu.

 

[Riick]

......to stop this high fuel cost scenario until our government gets serious about
converting the fleet of vehicles to natural gas...perferably with parts built in the U. S. by U. S. workers.

Now that's a scenario I never thought of... go from oil to natural gas,
not via fleet of new cars, but a conversion program for existing fleet,
with compressors at each gas station, and home compressors as well (??).

I wonder what that would cost per vehicle when economies of scale come into play.
I know that retail conversions, with tanks, are typically in the $4-$6k range IIRC
--similar to cost for a flat screen TV, 10-12 years back-
but if we were talking millions of conversions, cost might drop to
---Just saw a 46" flat screen offered for $550---
and home compressors probably in the very same range.

Hummm... lousy trunk space (taken up by tanks of compressed gas), but, fuel at the equivalent of well under $1/gallon of gas.
That would boost the economy! and the jobs created for installing the conversions themselves would provide a temporary boost as well.
.

 

[EDWARD BERRY]

Been Used In Russia And Ukraine For Years.

They Did Not Care About Profit.

Propane Is The Way To Go Back To.

1950-1960 And To Day In Ukraine.

Some Backfire But Very Few Problems.

Been There, Done That.

Arkie Farmer

 

[Restrain]

Texas legislature has passed a natural gas conversion law just recently. Don't know all the details, but it encourages fueling stations, etc, like has already been done for electric cars.