Stories tagged with "oil demand"

Financial Forecast for 2009, Considering Resource Limitations

Posted by Gail the Actuary on January 6, 2009 - 10:10am
Topic: Economics/Finance
Tags: 2009 forecast, bankruptcy, debt unwind, hyperinflation, oil demand, peak oil [list all tags]

In this post, I consider some major issues contributing to our current financial problems, before making a financial forecast for 2009. These are

1. Why so many asset classes are so highly correlated in times of distress. This chart gives my interpretation of part of the problem.


Figure 1

2. Why growth is essential for keeping the current debt-based financial system operating.

3. Where we are now, and the role reduced resources (including peak oil) are likely to play as we go forward.

4. My forecast for 2009.

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The Economics of Oil, Part I: Supply and Demand Curves

Posted by Prof. Goose on August 19, 2007 - 10:20am
Topic: Economics/Finance
Tags: 1973, 1979, demand, eia, elastic, elasticity, iea, inflation, markets, oil, oil demand, oil prices, oil shock, saudi arabia, supply [list all tags]

This is a guest post by Robert Smithson, a portfolio manager at a London based investment fund.

This is part one of a two part article on the economics of oil price demand. The second part looks at the economics of peak oil, and how the oil fits into an overall energy demand curve.

Introduction

“The world is consuming more oil than it is producing.” --The Economist, July 14-20 print edition.

Wow, that’s a shockingly foolish statement. Each day approximately 84 million barrels of oil are extracted from the earth, and approximately the same amount is consumed. It can be no other way: inventory space is limited, and could not be extended significantly by “excess production” or indeed drawn down for long by “excess demand”.

The problem is a basic lack of understanding of economics. And The Economist is hardly the only culprit.

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The Economics of Oil, Part I: Supply and Demand Curves (Detached Comment Thread)

Posted by Prof. Goose on August 19, 2007 - 9:45am
Topic: Economics/Finance
Tags: 1973, 1979, demand, eia, elastic, elasticity, iea, inflation, markets, oil, oil demand, oil prices, oil shock, saudi arabia, supply [list all tags]

(This is a post with the old comment thread for the post above...sorry to make you click back and forth...the new link is here.)

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