by Mircea » Sun 03 Jun 2007, 23:17:04
$this->bbcode_second_pass_quote('Nonsense', 'I')s there no one to stand against my argument that the complexities involved preclude reaching any meaningful conclusions?
Or is the question itself sacrosanct?
I command you!
By your command.
Peak Oils are a non-event and beause they are, you don't need to know the precise day, hour, minute and second when oils will peak.
The date oils peak is analogous to the dates the various peace treaties were signed ending WWII.
Here's a trick question: Where the peace treaties signed before WWII started, or after it ended?
Hello? After it ended. Nobody got drafted because the treaty was signed. Nobody got killed or maimed or injured or their personal property, homes and businesses destroyed because the treaty was signed. People didn’t endure hardships, high prices for commodities, scarcity of commodities, or rationing of food and non-food items because the treaty was signed. All of that happened in the period
before the treaty was signed.
So it is with Peak Oils. The action will occur long before the oils actually peak.
Who's the smart investor, the one who buys stock in railroads and river transportation companies now, or the one who waits until after oils peak?
If your business is not a publicly traded corporation, you can run indefinitely on a 0% profit margin, but if it's a publicly traded corporation, a loss of profits means a loss of shareholders, making your situation worse.
If you're incurring losses due to rising transportation costs because of increasing oil prices, you might be able to raise the price of the products you sell to cover your losses, then again, you might not. If your product is disposable razors, the answer is not "no, but hell no." If you're manufacturing something else, maybe you can get away with a price increase, but you can't keep increasing prices forever. So, are you going to switch to rail/river transport before, or after, your company files for Chapter 11 bankruptcy protection? Well, whatever you do, you'll do it long before oils peak.
If you want to follow the
real action, you just have to watch your basic economic indicators and keep an eye on the prices of oils to get an idea of what will happen and when.
I'm not even sure oils can peak. Rising prices have a very strong tendency to reduce demand. Reduced demand for oils/refined oil products will be involuntary for the majority of households, manufacturers and governments. And, of course, as prices continue rising and households, manufacturers and governments start seeking substitutes, so demand will decline further.
I know the Doomers with much elaborate fanfare present their laundry list
ad naseum of sundry items you'll never ever see again making your life miserable forever and ever because of peak oils, but that's sheer ignorance. There are thousands of substitutes for oil based products and nearly all of the items on their list were made for decades using animal fats before switching to oils.
Cosmetics is a good example, having been made with animal fats through the 1980s before switching to oils. Okay, maybe there won't be 750 Gazillion colors, and maybe lipstick won't be sheeny and shiny and glossy and not stick very well while performing, you know, that thing, but people will survive.
Anyway, just watch the economic indicators and don't forget that the data is skewed where the US is concerned.