I do wonder if, given the state of the worlds financial markets and collapsing industrial activity, and the massive hike in energy prices (that is actually not a price rise but a currency fall) it is not time to start thinking about the dreaded ‘R’ word, especially for oil and gas.

No, not recession, despite all the protestations by Bush that is a now well established, I mean rationing.

Rationing is actually happening here and now but it is being achieved by price. The consequence is that those with the cash are not significantly affected (though they usually scream the loudest) whereas those with least just have to cut back.

Now in principle and in fact I‘m all in favour of free market in all things, but when the market supply side is NOT free as a result of the actions of OPEC, or energy suppliers such as Russia in the case of gas, then the whole thing breaks down. It’s then that those with easiest access to cash themselves distort the market on the demand side.

Maybe it’s time for the “R” word to start to be used, and maybe if not just used but implemented the effect on the supply side of the distorted market would be one of softening and a price fall would result.

It will come. It has to. The only question is when, and what damage will be done before the nettle gets grasped.
[Rep]

No Peaking: The Hubbert Humbug

The planet has **** loads of oild left. We are nowhere near needing to ration, UNLESS we are artificially pushed that way.
[Rep]

What is available is that which we are let to gain access to.
[Rep]