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Thursday, January 03, 2008

Pressure at the Gas Pump

<>#1) Peak Oil Review - December 31st, 2007
Some are beginning to ask if a major turning point was reached about 6 months ago. World oil production has been flat for the past three years. US and European consumption has been flat while consumption by India, China, and the oil producers have been increasing rapidly. The shortfalls largely have been made up by reduced consumption in poor countries that cannot afford to import oil at current prices. The poorer countries, however, can only cut back imports by so much before they reach an irreducible minimum.

If that minimum has been reached, then the OECD countries are living off stockpiles. When the minimum operating level for these stockpiles is reached and shortages start to occur, the bidding war for imports will shift into high gear, and much higher prices will ensue.

Just go read the whole thing.

#2) Big Oil Sets Sail for Greenland's Waters
< style="font-family:verdana;">ExxonMobil and Chevron of the US, Husky and Encana of Canada, Dong of Denmark and Britain's Cairn Energy are amongthose that have either already won or have applied for exploration licences from Greenland's Bureau of Minerals and Petroleum. just one area off eastern Greenland could contain more than 110 billion barrels of oil - about 42 per cent of Saudi Arabia's reserves

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