Surprise Friday

Matt Simmons the surprise guest on CNBC's "Fast Money."

Category:

News & Politics

Tags:

• matthew
• simmons
• peak
• oil

[xenix2012]

$300 bbl doesn't seem so far fetched now does it?

[UnderseaCaveman]

Let me clarify:

OPEC's figures show a lessening the rising demand curve, however that is natural as price is pushing down any "elastic demand"....then there will be a sharp price jump when we hit "inelastic demand" (the must have areas of industry).

Well, for sure, time will tell.....til then, Aloha, USCVM!

[rsnic]

Sorry its just not happening any time soon, peak oil theories have been around for 80+ years but they all prove wrong. OPEC's figures show demand has been lessening since 2006(despite rising capacity). The peak oil argument is just being capitalized by people to shift the blame from US economic self-induced destruction.

[UnderseaCaveman]

Hint, we haven't discovered a major Oil Province in 40 years...GLOBALLY! So, Peak Oil (Demand exceeds Supply) is due now, it already happened last year! Of course, if they punch more straws per field in ground, we will have an asymetrical Bell Curve!( ie, steep down slope).

[rsnic]

I'm not convinced that peak oil will occur in my lifetime, it will eventually occur though provided we don't switch to another energy source. There is nothing pointing towards shortage or slowing of supply worldwide. I would be more worried about Qatar and UAE are probably going to stop trading oil in USD this year, when they do more will follow and accelerate the fall of the US economy.

[UnderseaCaveman]

"you could say gold is peaking"....

I must clarify... I mean "Gold Production is Peaking" (the Production was assumed, my bad).

Well, if there was no inflation, and Gold was "ready to discover and produce", then we would still see that Oil Price rising 4% per year, when in fact it should be falling (Volume discount, technology improvements)...as it did throughout history (even with steady inflation)... Peak Oil is HERE!

[rsnic]

My point was that the main factor of high prices is that the US is destroying its currency. The rise caused by demand is insignificant compared to that. You could say gold is peaking if you had no idea about how currency supply works.

[UnderseaCaveman]

.....and of course, some are saying Gold is peaking... check out in South Africa (Gold Corp).

[UnderseaCaveman]

If you compare the Price of Gold and Price of Oil, you will see that while "both boats are rising on the tide of dollar devaluation", Oil is outpricing Gold steadily at 4%/yr. Every year you get less barrels of Oil per Ounce! Peak Oil is here!

[rsnic]

This is nothing to do with oil demand, in fact opec is expecting less demand. Pretty soon no one is going to be selling it in U.S dollars because its not worth anything, there is too much U.S currency in circulation. You can still buy pretty much the same amount of oil as you could 10 years ago if you paid for it in gold. Compare the price of gold to the price of oil and you'll see that the value of money is what is changing.