by dennyinthegarden » Thu 06 Jul 2006, 00:20:15
I've noticed something about my fellow humans, particularly family that may not tend to think like me: they don't seem to really want to listen or understand. Just over a year ago my sister and husband bought a Durango... I advised them not to and explained why. They went ahead and bought it. Last month they traded it in and lost a lot of money. Over and over again I have these I told you so experiences in regards to issues such as PO.
Seems to take awhile for the reality to sink in.
It occurred to me today that perhaps it might be helpful to draw out the details of 3-4 potential scenarios for the next 10 years in the hopes that the folks I'm close to might take it a bit more seriously. Sometimes numbers and details can help people visualize more than a more generally described reality. So, with that in mind I've set out to create a series of 3-4 speculative scenarios to help folks visualize the potential realities of PO.
My first thought is simply to ask:
What might happen in 10 years and where do we want to be? I'm thinking here specifically about just something concrete that people can directly relate to, namely, gas prices. From this I'd hope to create and/or discuss all of the other details of how PO might play out.
My estimates/rations may be way off... likely are but it's a start. The variables listed thus far are just the most obvious. Lots of variables not addressed such as the effects of increased demand or demand destruction. I don't want it to get overly complicated but don't want to over simplify either.... too much and people sometimes run away.
So, with that, anyone want to take a look and offer correction/opinions?
Best case
Things in Iraq get better
Things with Iran get better
General conditions in Middle East get better
Oil production continues flat
Assuming the above gas likely to rise an average of .25 - .50 a year and oil $10 a year for the next 5 years. After that assume .50 or more per gallon of gas and $10 - 15 per barrel of oil.
End of 2006= $2.90/gal gas, $75 / barrel of oil
End of 2007=$3.25/gal gas, $85-90 / barrel of oil
End of 2008=$3.60/gal gas, $95-100 / barrel of oil
End of 2009=$4/gal gas, $105-110 / barrel of oil
End of 2010 $4.50/gal gas, $115-120 / barrel of oil
End of 2011=$5.10/gal gas, $125-130 / barrel of oil
End of 2012=$5.70/gal gas, $135-145 / barrel of oil
End of 2013=$5.30/gal gas, $145-155 / barrel of oil
End of 2014=$6/gal gas, $155-165 / barrel of oil
End of 2015=$6.70/gal gas, $165-175 / barrel of oil
End of 2016=$7.80/gal gas, $175-185 / barrel of oil
Worse case
Things in Iraq continue to worsen
Things with Iran get worse
General conditions in Middle East get worse
Oil production continues flat, begins 2011 decline
Assuming the above gas likely to rise an average of .70 - 1.00 a year and oil $15 a year for the next 5 years. After that assume 1.20 or more per gallon of gas and $15 - 20 per barrel of oil. Of course should something drastic happen in the Middle East or in the U.S. or South America/Mexico, sudden and very large rises should be expected.
End of 2006= $2.90/gal gas, $75-80 / barrel of oil
End of 2007=$3.60/gal gas, $90-95 / barrel of oil
End of 2008=$4.30/gal gas, $105-110 / barrel of oil
End of 2009=$5/gal gas, $120-125 / barrel of oil
End of 2010=$5.80/gal gas, $135-140 / barrel of oil
End of 2011=$6.70/gal gas, $150-155 / barrel of oil
End of 2012=$7.70/gal gas, $165-170 / barrel of oil
End of 2013=$8.70/gal gas, $185-190 / barrel of oil
End of 2014=$9.70/gal gas, $200-215 / barrel of oil
End of 2015=$10.90/gal gas, $215-235 / barrel of oil
End of 2016=$12.10/gal gas, $235-255 / barrel of oil
Worst Case...