Coming 'oil glut' may push global economy into deflation

(anyone in oil related counters......)


http://www.telegraph.co.uk/finance/comme...ation.html

http://investideas.net/forum/index.php

Commodities as an asset class been bad for 1-2 years.

"I recently attended a Transatlantic Dialogue on Energy Security with senior military officers in London and Washington. The message was that shale will come and go - with US tight gas peaking by 2017 - creating a false sense of security as the deeper strategic threat continues to build"

I think this is most illuminating in an article talking about glut, and inline with what was discussed in the shale gas thread. It is very disturbing that people and market assume shale gas fields has oil field's half life. In the short run, the market is a voting machine.

(16-01-2014, 02:21 PM)specuvestor Wrote: "I recently attended a Transatlantic Dialogue on Energy Security with senior military officers in London and Washington. The message was that shale will come and go - with US tight gas peaking by 2017 - creating a false sense of security as the deeper strategic threat continues to build"

I think this is most illuminating in an article talking about glut, and inline with what was discussed in the shale gas thread. It is very disturbing that people and market assume shale gas fields has oil field's half life. In the short run, the market is a voting machine.

We had lots of peak oil predictions since 1970s.. Most fell short.. very short..

[Image: 800px-Estimates_of_Peak_World_Oil_Production.jpg]

http://industrializedcyclist.com/EIAspeakoil4cast.pdf

Most of us know about peak oil. I'm not sure most of us understand shale gas dynamics

(16-01-2014, 02:49 PM)specuvestor Wrote: Most of us know about peak oil. I'm not sure most of us understand shale gas dynamics

Definitely not a business editor nor a bunch of military officers.
I prefer a more concise research report using proper scientific analysis than opinions.

And the list of predictors of the time of peak oil were quite accomplished scientists or geoscientists..haha.

Technology will think of ways to extract gas from marginal wells (gas or oil).
And help find oil and gas in different places.

Thats why peak oil is always wrong. For now.

(16-01-2014, 03:05 PM)opmi Wrote: Technology will think of ways to extract gas from marginal wells (gas or oil).
And help find oil and gas in different places.

Thats why peak oil is always wrong. For now.

USA is the smartest of the lot. Control the oil fields in the middle east via wars on terror from the 80s onwards. Now they will be controlling the oil price from the foreseeable future as they are holding onto the majority of the world's oil - Shale gas.

Quite interestingly, the idea of renewable source of energy - wind, tidal powered application got attention at the same time when oil price initiative came back to the US.

This oil glut is basically a natural act of happenings to the greater economy - what's goes up must come down, literally.

Belg

I'm not so concern about peak oil, or of man running out of cheap fuel / energy source. I am more worried about whether all the carbon emitted will have catastrophic consequences, and if so, how is man going to transit towards clean energy sources.

(16-01-2014, 03:20 PM)wee Wrote: I'm not so concern about peak oil, or of man running out of cheap fuel / energy source. I am more worried about whether all the carbon emitted will have catastrophic consequences, and if so, how is man going to transit towards clean energy sources.

Wee,

I am in the energy and oil/gas industry. I can see big transitions now moving in the area of clean energy sources. Even now big car makers are moving towards battery powered cars.

Because of this big shift towards saving the environment, a lot of governments are considering nuclear power plants again. They are considered greener than those gas/coal fired power plants.

It is really greener or it there a propaganda behind using nuclear?

Belg