|
« The Schwab Economy |
Main
| Earnings Preview: Harley-Davidson »
January 18, 2006
The Sky Isn't Falling
Michael Sivy takes on the bears:
"Oil prices are going to soar even higher!"
THE REALITY Yes, turmoil in the Middle East and hurricane damage to Gulf Coast wells and refineries have temporarily put a crimp in supply. Strong demand, including greater consumption in China, also has boosted energy costs.
But there's no long-term energy shortage. Canada's oil sands alone contain nearly as much petroleum as Saudi Arabia has. It just costs $20 a barrel or more to produce, six times the cost of the cheapest existing wells in the Middle East. Other sources of oil and gas are abundant as well, although at high prices. The bigger catch is that it takes as long as five years to find and bring new production online.
Read the whole thing.
Posted by edelfenbein at January 18, 2006 3:39 PM
|
