There is always light after the dark. So I'm going to write a bit about recovery after the coming recession. For our economy will recover, albeit with a new personality. Yes... that bad a recession.
Part of what is hurting the economy is oil prices. Our economy is dependent on cheap energy, but should be using it more efficiently. High oil prices will drive consumer habits towards more efficient use of energy. Let's face it, business will adapt to the energy prices quickly. Its J6P and his heated/cooled McMansion and SUV that need to adapt.
But there is more oil out there for the drilling. I've had this argument with friends for years. One is the new field off the coast of Brazil. But guess what. There is a HUGE known field that isn't being pumped!
But the expansion is more important strategically for Aramco. In three years, Aramco plans to open the spigots on what could be Saudi Arabia's last giant reservoir of crude: the Manifa field that stretches from the kingdom's east coast into the Persian Gulf. The field, first discovered in 1957 but later mothballed, is slated to pump 900,000 barrels a day of heavy Arabian oil.
In this WSJ article on a refinery expansion (subscription)
The article is focused on the refinery. But it notes it can also use Canadian oil shale as a source of oil.
I'm hoping we'll invent a bacteria to process saw grass into Ethanol or diesel. But that's up to one inventor pulling off an amazing improvement.
Got Popcorn?
Neil
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3 comments:
Neil,
I almost got sick last night after I read this:
Who will bail out the Fed?
Once the Federal Reserve takes away the power of Congress to borrow money, it's all over, IMO. Then we will REALLY see the printing presses turned on to max speed. The author of the article says, "not even gold will save us."
Congress has been such a lapdog for the Federal Reserve up to now, I have my doubts that writing my representative will do much good. But it's worth a shot.
Hello Does any one know what JT means as Neil used it in his "a little humor on home prices" post? Sorry I am a rookie.
thanks
Rosalie,
JT= "Joshua Tree"
The implication is those that have sold their sole to sell real estate or screw up the economy... deserve on inserted where the sun doesn't shine. Its a large prickly desert tree in the southwest. I used to hike in Joshua tree national park as a kid. :)
Got Popcorn?
Neil
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