While Obama's inept moratorium on oil drilling along the US Gulf Coast heaps misery upon millions of Americans, Alberta's economy is being rejuvenated by the shift of resources northward to the oil sands. If Obama's political agenda prevents oil companies from investing in the United States, they will naturally turn to the vast hydrocarbon resources of other nations such as Canada -- while Mexico, Cuba, Russia, China, and Brasil move to take advantage of deep sea oil resources that the US government eschews.
In a research note this week, investment bank Peters & Co. said as much as $30 billion will be spent from 2011 to 2015 on mining and in situ oilsands projects to boost production by almost one million barrels per day.
"Most new sizable projects are controlled by majors with less financing risk and lower costs of capital than juniors of previous cycles," wrote research analyst Todd Garman.
"Based on our assessment of currently planned oilsands mining and in situ projects, including phase expansions, we forecast total potential production additions of about 900,000 bpd, with mining and in situ production of 300,000 bpd and 600,000 bpd, respectively."
..."Specifically, we anticipate that ConocoPhillips' Surmont, Husky's Sunrise, Imperial's Kearl, MEG's Christina Lake and Suncor's Firebag 4 projects provide potential oilsands construction growth opportunities for Flint, with these projects expected to be awarded by 2010 year-end," Garman wrote.
He said the biggest risk for development is related to oil prices -- the projects are projected to break even at between $55 and $65 US per barrel. _CalgaryHerald
As long as oil is priced in terms of the weak Obama Dollar, the price of oil is likely to be above $55 per barrel.
As peak oil drifts ever further into the distance, the more relevant and proximal causes of energy shortages derive from "political peak oil", and the disastrous decisions being made daily by incompetent clowns in public office.
Gold has been surging of late, and yesterday it hit an all-time high of roughly $1,280/ounce. Supply/demand theory would likely say that demand for the yellow metal is outstripping supply, but this would be mistaken thinking.
Instead, gold is expensive right now because the dollar is cheap. _RCM
The price of gold has risen to record levels recently, in terms of the US dollar. But pricing things in terms of the US dollar can be deceiving if one does not correct for government-induced shrinkage.
Unique among commodities, nearly every ounce of gold ever mined is still with us today. In numerical terms, there are roughly 148,000 metric tons of gold on earth, and the supply of newly discovered gold each year usually works out to 2,000 metric tons.
The above-mentioned stock/flow disparity explains neatly why gold has been used as a money measure for thousands of years. Lacking any major industrial purposes that lead to its consumption like oil, gold discoveries are merely additive to the global stock, and with new, annual discoveries very small relative to the total supply, the price of gold is enormously stable in real terms.
To put it more simply, when the price of gold fluctuates it's a signal of dollar (the currency in which it's priced) instability, as opposed to a gyrating price of the metal itself. And with gold presently more expensive in dollars that it's ever been in history, the most monetary of all metals is signaling that the dollar is the weakest it's ever been.
The culprit for the dollar's decline is pretty basic. Despite the fact that the Federal Reserve issues dollars, it's the U.S. Treasury that is the dollar's mouthpiece, and just last week Treasury Secretary Tim Geithner signaled his and the Obama administration's preference for a weaker greenback. _RealClearMarkets
By similar logic, the current price of oil is not nearly as high as you might think, given the amazing, the shrinking, Obama dollar (it be cheep, mon!).
The cheap dollar is not the main cause of the dismal outlook for the US economy, but it doesn't help. As the hyper-leveraged, hyper-regulated US economy tries desperately to find a way out of its government-induced and bottomless recession (you don't believe those government numbers, do you?), the Obama Pelosi regime simply passes new legislation to shut any peepholes of economic sunshine that may remain.
Remember: no matter what the Fed decides on interest rates, US interest rates will be headed up. Otherwise, no one will buy US debt in the near to intermediate future. That would only leave the printing press to pump out the Obama dollas as payment for goods and services rendered. But remember: One trillion multiplied by zero still equals zero.
When the leader of the world's superpower consciously embarks on a mission to destroy the integrity of his nation's economic and political infrastructure, one should understand the perversely tragic aspects of the situation. Mr. Obama's dreams of conquest over the evils of the colonial western world are near their climax. It is unfortunate that he lacks the insight into his own motivations, and that he fails to see the parallels between his own suicidally quixotic quest, and the many similar futile quests of leftist justice over the past century and more.
20 years after the collapse of Soviet Eastern Europe, and as Chavez' Venezuela falters and Castro is acknowledging the failure of his own revolution, Mr. Obama has just begun to institute his own revolution of destruction against the Great Satan of the Islamists, and the bane of leftists around the world.
Although it is still the world's superpower military hegemon and the economic anchor of the world's economy, the steep upward trajectory of the US government's debt was already a cause of concern even before Mr. Obama was elected. But Obama has increased the acceleration of economic doom by an order of magnitude -- and in so many ways that it is impossible not to suspect that it is an intentional agenda of destruction. The Obama Pelosi regime has made sure that there is no political way out of the quagmire, despite the worst the Tea Party may try to achieve to restore constitutional government.
Obama's plan does amount to an elaborate revolution and bloodless coup against the constitutional political and economic protections put in place over 2 centuries ago. The energy starvation aspects of the Obama Pelosi regime alone are enough to destroy the private sector eventually, but the hidden malignant aspects of Obamacare and the Dodd-Frank act -- among many other new regulations, provisions, and laws -- will accelerate the destruction beyond the comprehension of those who think in simple political and economic terms. And so it goes without end -- an ambitious coup against the "negative aspects" of the US Constitution. Because Mr. Obama's genius cannot be constrained by such an ancient document of restraint.
And so it comes down to insurrection. But a bloodless coup does not require a bloody insurrection to counter it. In fact, Americans should not even want the America that existed before Obama's election -- although Obama Pelosi has made many Americans look back with nostalgia to pre-OP times.
What kind of insurrection will it take to bring about a constitutional government with equal protections under the law and abundant opportunities for expanding the economy?
A comment on a previous article -- which mentioned voluntary alteration of tax compliance by citizens -- contains the beginning of an idea which needs to be expanded and transformed. But governments cannot go on indefinitely spending more than they receive. The government printing press contains the ink of its own destruction, as the Perons of Argentina and other tyrannical populists throughout history have learned to their regret.
More on the peaceful insurrection later. Assuming the Obama zombies allow that option.
