Thursday, July 3, 2008

Oil approaches £150 a barrel

Oil soars close to new $146 a barrel record

Oil tightened its squeeze on world economies today soaring to a new high of over $145 a barrel. Eurozone growth is also expected to take a further hit at lunchtime when the European Central Bank is expected to raise rates to curb inflation. In London, the continuing threat of an attack on Iran, the world's fourth largest oil producer, sent Brent crude to $145.75 a barrel, while in Asia, oil for August delivery was trading at $144.35 - more than 30 per cent higher than prices at the end of last year.

Posted by uncle chris @ 09:38 AM (1162 views)
Please complete the required fields.



25 thoughts on “Oil approaches £150 a barrel

  • japanese uncle says:

    This entire drama looks increasing like a plot to accelerate changeover to nuclear energy, involving trillions of pounds of vested business interests, not least the ownership of uranium and other resources. We must remember, though, conventional nuclear fission technology can never be an alternative with its astronomical and hardly justifiable costs of commissioning and decommissioning, waste disposal, etc let alone the present grave danger which could undermine the very existence of mankind.

    Reply
    Please complete the required fields.



  • ju, get your facts right. Production of both oil and natural gas in the UK is falling fast – we need nuclear power just to keep the lights on. Wind power won’t cut it – you’d need to cover the entire country in wind turbines, and the cost of metals (to make turbines) has gone through the roof lately. Nuclear is the most cost-effective option.

    Reply
    Please complete the required fields.



  • JU, Japan’s infrastructure is mostly run on nuclear fuel. Petrol is relatively cheap in Japan too.

    Reply
    Please complete the required fields.



  • just a mad thought, is the US pushing dollar so oil goes up in price to damage the chinese economy, then when all the damage is done and oil prices are sooo high it makes you cry, USA suddenly states they have a new oil find and starts selling at the high price thus bringing the states back up to number 1? lol

    Reply
    Please complete the required fields.



  • japanese uncle says:

    drewster & pail:

    Then how come Germany is maintaining its infrastructure and industrial strength without nuclear energy? Where there is a will, there is a way.

    I don’t think the Japanese government is doing the right thing at all! They actually constructed nuclear plants just above faults!! without proper checkup. When a quake hits the plant (which is a very probable eventuality), litterally millions of population will be wiped out. Then everything will be too late. Genuine holocaust indeed.  

    Reply
    Please complete the required fields.



  • Whoever believes that non-redeemable bits of paper can stand for money will loose everything. Just as the big statist ideas of communism and fascism collapsed, so too is their financial counterpart, fiat money. The world is inexorably returning to asset-backed money, and the sooner people wake up to this fact, the sooner they will be able to protect their wealth. Oil may crash, but its price is indicative of the fact that people no longer believe in paper money.

    Reply
    Please complete the required fields.



  • I totally agree wtih Japanese Uncle,

    The current situation lends itselfd more to the prolifaration of nucleur power than any other scenario. We ain’t running out of the black stuff yet, but we will, and the oil companies/countries/producers want to keep the bucks flowing to them. We can’t reduce our power consumption but we should. The vested interests in the power industry do not want us to have any control about where we get our power. The nucleur industry is the perfect answer. Hi-Tech and outside our control. The can keep supplying us with ‘low carbon’ power, at a premium, for our electric homes with our electrical appliances and our electric cars, and we just keep trundling on, not changing our societies demands on our environment or planet so that they can keep their shareholders/owners/sheiks/juntas in place.

    JU is also right in saying that we only have to wait for the inevitable nucleur accident to happen to change our views on this disastrous policy (chernobyl was really only a very small version of what could/will happen) – We have to cange the way the world works – Nucleur power aint the solution, it’s just more of the same!

    Reply
    Please complete the required fields.



  • Oil approaching $150 a barrel.

    I think it is fair to say that David Smith of The Times prediction a couple of years back that inflation would fall as oil retreated to $40 a barrel is somewhat inaccurate!

    Reply
    Please complete the required fields.



  • japanese uncle says:

    nooneo

    Germans are at least thinking on their own, hence their decision to terminate nuclear plants. Vast majority of the population in the UK/US are not thinking on their own as precisely proved by their recent behavior in the housing bubbles.

    Incidentally it is about time people realize the deception, ie how could the same kind of people who scaremonger the fear of terrorists, waging ‘war on terror’, possibly promote nuclear power plants in their right minds, which will be the ultimate ‘mouth-watering’ perfect targets for the terrorist? Maybe they know somehow that the nuclear plants will never be targeted by their ‘terrorists’ really.

    I do believe wind farm, which admittedly could be an eyesore for many, will be a much better solution in this respect. Blowing up windmill may not be a good idea for terrorizing people.

    Reply
    Please complete the required fields.



  • harold – can I have your cash then?

    Serious point – yes, fiat money does still have value, in exactly the same way gold does. Neither have any innate value.

    Reply
    Please complete the required fields.



  • I have yet to see a computer, car dashboard, CD, shrinkwrapped package, pharmaceutical, fertiliser, pesticide, or wheelie bin made out of electricity.

    Maybe you can have all the electricity you want from nuclear (providing you don’t mind the prohibitive costs involved – probably ‘too expensive to meter’ once you factor in all the eventual decommmissioning costs, which the consumer has to pay for – and can deal with the reality of ‘Peak Uranium’ being essentially the same problem as ‘Peak Oil’).

    So print this out and stick it on your fridge:

    WE NEED OIL, PHYSICALLY, TO MAKE PRACTICALLY EVERYTHING WE USE.

    Reply
    Please complete the required fields.



  • Then how come Germany is maintaining its infrastructure and industrial strength without nuclear energy? Where there is a will, there is a way.

    JU

    Any ideas as to who is on the Gazprom payrole?

    Reply
    Please complete the required fields.



  • japanese uncle says:

    lierbag

    Wrong. That’s simply because oil has been cheap enough. Thousands of materials are available to make thing, eg wood, steel, etc.
    Actually using wood may be far more eco-friendly and sustainable and safer approach. In this sense, this third Oil Shock may turn out to be beneficial to us after all.

    Reply
    Please complete the required fields.



  • harold @ 6 : Is Right. No question.
    j u @ 1,5,8 : Is Right. No question.

    Reply
    Please complete the required fields.



  • george monsoon says:

    Why can’t they just stick the windfarms out on platforms, miles out to sea where we can’t see them?

    Reply
    Please complete the required fields.



  • here’s a thought, how about the manufactures making our stuff less power hunger?

    Reply
    Please complete the required fields.



  • I agree again Japanese uncle,

    Wind power is a perfectly viable way of generating a large chunk of power and I also agree that the cheapness of oil has lead us to overuse it for almost all purposes. I also agree that many more things can be made from one of the truly renweable resources, namely good old wood. Solar power is another vastly under utilised resource. Even here in gloomy, grey ol’ blighty we could cut our domestic energy bills by at least 60-70% by utilising solar energy, it’s just not happening.

    Lierbag, simply wrong, we don’t need oil for everything, far from it there are a huge amount of alternatives, we just don’t get it yet. We have to completely change the way we utilise all our resources, recycling has only just begun. The truth is our industry isn’t driven by anything other than the cost/profit ethos. Just look at the mobile phone. Go back to the 60’s and there were plenty of options for tying into the phone network from mobile locations, as long as you had a truck load of cash and the technology avaiulable to you. Now you can practically get mobiles for pennies and (if prudent) use them to your advantage for a few pounds a week. Put this sort of energy into finding alternative renewable energy sources and alternatives for oil, coupled with less consumption and we would all be in a better position.

    Remember the oil will run out, eventually and the world will almost certainly provide alternatives, we always manage to find a solution to problems when the problem comes and slaps us on the chops!

    Reply
    Please complete the required fields.



  • JU: ‘Wrong. That’s simply because oil has been cheap enough. Thousands of materials are available to make thing, eg wood, steel, etc.
    Actually using wood may be far more eco-friendly and sustainable and safer approach. In this sense, this third Oil Shock may turn out to be beneficial to us after all’.

    Have you OD’d on Fugu fish? Britain – alone – had already cut down most of its indigenous forests, for maritime use, by the end of the C18 – which is why the navy was originally sent to check out Australia for new supplies of pine for use as masts. There isn’t enough wood in the world, or time to wait for the trees to grow, to replace all the things we use currently cast (and I wouldn’t want to whittle their wooden equivalents) cheaply from plastic.

    Steel? You can’t make steel, efficiently and cheaply, without coal:

    ‘Coal is essential for iron and steel production; some 66% of steel production worldwide comes from iron made in blast furnaces which use coal. World crude steel production was 1129 million tonnes in 2005, using around 664 Mt of coal.’

    We are heading into a post-carbon economy. Coal, like oil, is already nearing its peak for global production.The UK’s indigenous output of coal actually ‘peaked’ in 1927. We are not only heading into the uncharted territories of world shortages of oil, coal and gas – but using them increasingly anyway (given massive population growth and demand) would only accelerate the effects of global climate change.

    Reply
    Please complete the required fields.



  • lierbag – you are wrong. Hemp Oil was used to make plastics before it’s prohibition caused by Oil Company lobbys!!! Don’t think that fossil oil is the only oil out there – there are many alternatives.

    Hamp is probably one of the most useful crops available to us today, but we will have to wait for the collapse of the oil industry before it’s rightful legalisation allows everyone cheap access to oil, plastics and fibre.

    Reply
    Please complete the required fields.



  • japanese uncle says:

    lierbag

    The great thing is you can grow trees while coal would last much longer than oil, anyway. And I doubt the authenticity of global warming theory as well as peakoil. Many scientist believe it comes from the solar activity.

    Naturally such conversion to the traditional materials must involve economic pain in the form of deflation/recession, ie large scale downsizing of economy.

    Reply
    Please complete the required fields.



  • Rental John says:

    Well said LB….

    Neither can we make things out of electricity from solar or wind power….and what are the componets and parts for solar and windpower made of….? I’ve yet to see modern appliances made from wood or flint….for that matter!

    Where can I buy one of your fridge magnets?

    Can I have one that also says…..’No Oil = Stoneage’

    I have a solution…..environmentally friendly and renewable…..Whale farms!

    Reply
    Please complete the required fields.



  • JU: ‘The great thing is you can grow trees while coal would last much longer than oil, anyway. And I doubt the authenticity of global warming theory as well as peakoil. Many scientist believe it comes from the solar activity’.

    I don’t think I’ve ever seen anyone manage to cram so much self-delusional misrepresentation of scientific fact into barely two lines of text before. Well done.

    Of course we can ‘grow trees’ – we just can’t grow enough of them, or wait long enough for them to grow, or even bear the expense of fashioning them into all the things we currently make easily, and cheaply, from plastics, without the global economy crashing horribly.

    We have made no preparation for the transition, and the period of eventual dislocation may be long and brutal.

    Coal is just not an option. It’s also subject to one of those ‘theories’ you don’t believe in – the one based on the premise that finite resources can’t last forever in the face of escalating demand. You know, that ‘theory’ they’re currently debating in practical terms in Iraq.

    You also doubt the ‘theory’ of global warming. So who am I going to put my faith in, you? James Hansen? The islanders of the Maldives already up to their ankles in seawater?

    Reply
    Please complete the required fields.



  • “I don’t think I’ve ever seen anyone manage to cram so much self-delusional misrepresentation of scientific fact into barely two lines of text before. Well done.”

    Stick around. You’ll see plenty more of it from s2r1, malct, p4ac and all their little chums.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>