Economics & Finance

4% of GDP is $80 oil = Recession

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pstarr
3 days ago • Sunday 2010-02-07 09:24:00 • Reply
mos6507 wrote:
This is the state of peak oil movement circa early 2010...
This is not a movement Mos, in spite of your obvious visions of grandeur. You don't really believe this bickering and doubt are extraordinary. This is the human condition, without a public relations department.

mos6507 wrote:
Pstarr and those like him are still desperately seeking to rationalize peak oil as the cause of the credit crisis in order to keep the peak oil meme alive considering that threats of imminent zombie doom by the likes of Matt Simmons and company did not materialize on schedule. (In fact, didn't Matt Simmons say, after oil prices tanked, that "rust" would create a superspike in 6-9 months? Still hasn't happened. Chalk up another massive fail to the master debater.)
You have me confused with someone else. You have most people here confused with someone else. That is your problem. In you own eyes you are the only intelligent rational person and the rest are targets to shoot down. This is another anti-peaker rant.

mos6507 wrote:
We went through an extended period starting in the fall of 2008 when oil prices tanked in which peak oil completely fell off the radar in favor of the credit crisis.
Are you referring to a particular sample group? Population? Whose radar? Is this old-media or blog analysis?

mos6507 wrote:
The Pickens Plan failed. EV projects exist only because of government handouts. SUV sales have at least partially recovered. Happy motoring (for those who have jobs) is back.

It was necessary to superimpose peak oil as the "grand unification theory" to explain the credit crisis to attempt to keep the issue in the public eye.

It failed.

It failed despite the fact that Obama issued his best catchphrase "shock to trance".
I am about done parsing your emotional trauma. I call it that because this certainly is not an argument. No data, except your own agreed-upon-numbers. I've watched you. You create an argument, pull some numbers out of a hat (that is what all the pseudo academics do here) mix them with a few other fabricated academic-sounding numbers, and then agree with yourself that they work. Then bludgeon people repeatedly. Like when you just stated that $120/barrel is reasonable, but $147 is fake. God! What hubris.

It's once again become very obvious that you have anger problems and a resulting agenda. You are pissed off because "the peak-oil movement" or whatever, is failed. You can not take responsibility for yourself. You are like a whiny leftist from the 1970's blaming "backtrackers" and "sellouts" for your own failure.

mos6507 wrote:
It failed because the public has extremely short-term memory, but it ALSO failed because peak oilers' main theory prior to the credit crisis was too simplistic. Peak oilers overstated their case and therefore opened themselves up to "boy who cried wolf" criticisms by the likes of Michael Lynch.
Main theory? What nonsense. My main theory is geology and a finite earth. My secondary theories include;
-exponential population growth and resulting planetary resource depletion,
-Deffreyes' version of Hubbert's method,
-discovery shortfalls and megaproject analysis
-inability of producing nations to respond to historically high oil prices with significant production increases
--6.7% field declines
-eroei, net-energy analysis and shortcomings of alternative fuels (including gunk)
-export-land(tm) phenomena and the evolving global balance of energy and money

mos6507 wrote:
The reason I'm playing whistleblower on this issue is that I was NOT just looking at peak oil and only peak oil at the time. I was tracking both peak oil AND the housing bubble. I knew the bubble was going to pop, and peakers did not. Despite that, I did buy into the Matt Simmons doomer scenarios, and I'm ashamed that I did. You know, fool me once, shame on you, fool me twice, shame on me.
Dude. I never did buy into any doomer scenario. I just moved to the California coast when (property was cheap :razz: ) to get as far away from this Konsumer Kulture as I could. I knew we were on an unsustainable path for several decades now, I worked for change, helped to create the organic food industry, and then I moved to get away from the people like you. I obviously failed. You will fail to. We all fail because we die.

mos6507 wrote:
My feeling is that the need that peakers have to point at charts and "call" inflection points just causes them to look like idiots again and again.

And the past year HAS had an unusually large number of oil discoveries. Are these "easy oil"? No. Are these going to start pumping tomorrow? No. But peakers should concede these discoveries.
When your prove YOY new supply/production numbers could eve 30 billion let me know. The rest is oil company public relations and scared-people conjecture. I am not scared and I see the truth. WE ARE RUNNING OUT OF OIL. Sorry to be so freakin' blunt about it. Hope that doesn't hurt our image :razz:

mos6507 wrote:
Peakers harm the movement by trying to build a simplistic straight-line narrative about doom, and of constantly ret-conning the narrative every time the real flow of history throws them a curve-ball.
There is no movement. It is in your head. And you are not the leader. I am not the leader. There are no leaders. The world is not capable of hearing of it's own demise.

mos6507 wrote:
Someone could write a War and Peace novel with all of the failed predictions over the last 5-6 years. Peak oil doom is always "imminent" or in the past tense, awaiting shockwaves.
Screw those predictions. I hate them to. A lot of pompous people have come and gone here with their doomer predictions. They are full of shite. What is new. That is not me. Never was. That is why I am still here and will remain so.

mos6507 wrote:
I say this not to disprove peak oil, but to call in question the over-eager peakers who are always slinging dates and predictions out of their *sses that don't match up with reality.
There is only one reality around here. We have peaked or are on the very cusp. We are certainly on a long plateau and about to slide over the edge. Maybe not his year but in a few. Geologically that is a wink of an eye. Get over it. Or start prepping and stop lecturing. Okay?

mos6507 wrote:
The trucks are still delivering to wal-mart. Airline travel is still feasible to the masses. You can still get your plastic pumpkins. Despite "Obamavilles" and such, Toecutter and his band of mutant zombie bikers are nowhere to be seen.
I am not toecutter.

mos6507 wrote:
Yes, we're in a recession, but a recession != peak oil doom. The dot com crash was not peak oil doom. the S&L crisis was not peak oil doom. The Great Depression was not peak oil doom. Apples and oranges!!! The recession is probably indicative of the larger narrative of the collapse of the US that perhaps started to gain momentum when US oil peaked in 1970, but it is not a function of global geological peak oil, aka the 2005 date that TOD posits, nor the $147/bbl peak pricepoint. I despise this intellectual crossing of the wires between $147 oil and the US oil peak of 1970.
I do not appreciate your desperate disassembling and pseudo-intellectual rhetoric, your sad attempts are staying in control and you fancy words. It is transparent.

mos6507 wrote:
People like Jeff Rubin are merely higher profile names that use much the same rhetorical argument as Pstarr and the like. I do not defer to their authority on these matters because they too are blinded by peak oil glasses. You can tell, you can just tell when you read or listen to Rubin that the guy is freaked out along the same lines as Ruppert. He's gone the way of Charlton Heston. "Soylent Green is Peeeeple!" They see doom in the mirror as many of us do, and you know what, they are flawed human beings just as we are. They can connect the dots wrong just as, let's say Michael Lynch at the WSJ can. I'm telling it as I see it, as an independently minded thinker who doesn't have to be TOLD what to think either by deniers or uberdoomers.
What a sad little rant. You are jealous, scared, and out of control.

mos6507 wrote:
Look, I understand how being a strident Cassandra makes sense given that people feel the need to boil in the pot before they try to jump out of it. But I do not support cooking the books. I believe in looking at the facts that we have, even if it doesn't add up to the doom we were all expecting.

The Hirsch report et. al. indicated that we have to begin transitioning off oil a few decades at least before peak oil happens. Well, human nature being what it is, even if everyone on the planet conceded that peak oil was 2020 or 2030, they WON'T begin transitioning until oil prices permanently recede into the stratosphere.

THAT is what makes me doomer. I don't have to bash the IEA for setting a peak date at 2020 or 2030. To me, 2020 is already too close for comfort. I'm not going to knee-jerk accuse the IEA of fudging the numbers because I still have that magic 2005 date from The Oil Drum burned into my skull. It's about trying to find some happy medium between overly doomer peakists and overly corny energy experts.

But no, peakers have to gather this warchest of cherry-picked datapoints in order to push their agenda and to try to hide, conceal, or discredit any data that runs counter to their narrative.

And God forbid anyone claim that doom isn't literally hours away or they will be accused of heresy and burned at the stake.



Look, I'm worried about peak oil. I had (what I think) was an anxiety attack last week and was in the ICU with an IV in my arm over cumulative stress and worries over how I'm going to get myself and my daughter through the combined sh*tstorm of the US economic collapse, peak oil, and global warming. So I am not some kind of shortonsense denier when it comes to the big picture. But if I don't tow the party line about "peak oil caused the credit crisis", then stuff it. It doesn't make me a troll for not bobbleheading in a thread like this.
Yes, Mos. Life sucks and then you die. Time to think straight, stop looking for consensus and authoritative advice, and act on your own . I came to peak oil for an education five years ago. I learn by digging, doubting, and arguing. I never for one moment believed in any of the "doomer" scenarios and I still don't. Fast crash is possible but there are good places to be and not-so-good places to be. I am in a good place. It takes patience and nuance to understand what is going on. Do a search on me. I never started a thread. That is not my style. I read everything, do not pretend to be an expert on anything, and mostly only respond to jerks or for a laugh.

Mos, you are too serious. You take your own education and capabilities too seriously. That is hubris. This place will not make a difference. It is too late. We are just little people and no one cares what we think. But still we must try. The human condition.

pstarr
3 days ago • Sunday 2010-02-07 09:34:00 • Reply
You all hate me because I am an expert. God! I have tried to be a kind and generous leader. I have licked your wounds, bound your nether regions, and have prostrated myself before your consensus. Like Brutus I have slung the arrows of infamy and in a resounding call to hams I have been rejected. Like a brontasauraus before the little velicoraptors. I am befuddled. Woa is me.

shortonsense
3 days ago • Sunday 2010-02-07 10:39:00 • Reply
pstarr wrote:
You all hate me because I am an expert.


Yeah, but this isn't a website specializing in proctology, so it doesn't matter.
LOVE YA PEE! :lol: :lol:

dorlomin
3 days ago • Sunday 2010-02-07 10:45:00 • Reply
pstarr wrote:
Like Brutus I have slung the arrows of infamy
Care to expand on this, or at least explain where you got it from?

pstarr
3 days ago • Sunday 2010-02-07 11:01:00 • Reply
dorlomin wrote:
pstarr wrote:
Like Brutus I have slung the arrows of infamy
Care to expand on this, or at least explain where you got it from?
It's a semi-literate joke that means absolutely nothing. And if you want to extrapolate, makes social points, and paint it as symptomatic of my overall lack of analytic and rhetorical skill than have had it. :razz:

shortonsense
3 days ago • Sunday 2010-02-07 11:13:00 • Reply
pstarr wrote:
dorlomin wrote:
pstarr wrote:
Like Brutus I have slung the arrows of infamy
Care to expand on this, or at least explain where you got it from?
It's a semi-literate joke that means absolutely nothing. And if you want to extrapolate, makes social points, and paint it as symptomatic of my overall lack of analytic and rhetorical skill than have had it. :razz:


Boy Pstarr, I'd say that horse is already out of the barn, down the road, and well into the next state by now..... :lol:

Tyler_JC
3 days ago • Sunday 2010-02-07 12:15:00 • Reply
Everyone is missing the monetary element.

The Federal Reserve controls the money supply. The Fed makes money cheap in order to allow the economy to grow quickly. Cheap money makes it easier to get capital for investment and reduces interest rates so consumers can get loans. Cheap money creates an economic boom. This economic boom pushes up demand for commodities like oil, wheat, copper, steel, etc.

As demand grows faster than supply, the price of commodities jumps. Then manufacturing prices jump...then retail prices...

Then the Fed decides that the economy is growing too quickly and pulls the reins in, pushing up interest rates, crashing speculative bubbles, and bringing us into recession.

The boom years push up oil prices, recessions pull them back to Earth.

It's not the high oil prices that are causing the recession. They are just a symptom of an underlying monetary phenomenon.

Image

Doesn't that look like a better correlation than this one:

Image


dorlomin
3 days ago • Sunday 2010-02-07 12:15:00 • Reply
pstarr wrote:
dorlomin wrote:
pstarr wrote:
Like Brutus I have slung the arrows of infamy
Care to expand on this, or at least explain where you got it from?
It's a semi-literate joke that means absolutely nothing. And if you want to extrapolate, makes social points, and paint it as symptomatic of my overall lack of analytic and rhetorical skill than have had it. :razz:
Ah just thought you had your Hamlet and Julius Ceaser mixed up.

mos6507
3 days ago • Sunday 2010-02-07 13:10:00 • Reply
pstarr wrote:
You all hate me because I am an expert. God! I have tried to be a kind and generous leader. I have licked your wounds, bound your nether regions, and have prostrated myself before your consensus. Like Brutus I have slung the arrows of infamy and in a resounding call to hams I have been rejected. Like a brontasauraus before the little velicoraptors. I am befuddled. Woa is me.


This shtick was done better the first time, when it came out of the keyboard of ReverseEngineer.


Ludi
3 days ago • Sunday 2010-02-07 13:23:00 • Reply
mos6507 wrote:
I had (what I think) was an anxiety attack last week and was in the ICU with an IV in my arm over cumulative stress and worries over how I'm going to get myself and my daughter through



You'll probably be fine longer than a lot of people if you have enough $$ to spend time in the ICU over a panic attack. :)

I hope you're getting some treatment for your anxiety disorder.


SeaGypsy
3 days ago • Sunday 2010-02-07 13:25:00 • Reply
MACBETH
She should have died hereafter;
There would have been a time for such a word.
To-morrow, and to-morrow, and to-morrow,
Creeps in this petty pace from day to day
To the last syllable of recorded time,
And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
Life's but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more: it is a tale
Told by an idiot, full of sound and fury,
Signifying nothing.

mos6507
3 days ago • Sunday 2010-02-07 13:37:00 • Reply
pstarr wrote:
Then bludgeon people repeatedly. Like when you just stated that $120/barrel is reasonable, but $147 is fake.


The 60 minutes piece on oil speculation attempted to say that ALL of the oil spike was speculation rather than supply and demand. For me to say that $27 worth of the oil spike is speculation is highly conservative and a fair estimate.

pstarr wrote:
You are pissed off because "the peak-oil movement" or whatever, is failed.


Is that unreasonable? I would prefer that peak oilers not sabotage the goal of peak oil awareness with "climategate" type errors.

pstarr wrote:
-exponential population growth and resulting planetary resource depletion,
-Deffreyes' version of Hubbert's method,
-discovery shortfalls and megaproject analysis
-inability of producing nations to respond to historically high oil prices with significant production increases
--6.7% field declines
-eroei, net-energy analysis and shortcomings of alternative fuels (including gunk)
-export-land(tm) phenomena and the evolving global balance of energy and money


Fair enough. And nothing here spells out "peak oil caused the credit crisis".

pstarr wrote:
When your prove YOY new supply/production numbers could eve 30 billion let me know. The rest is oil company public relations and scared-people conjecture. I am not scared and I see the truth. WE ARE RUNNING OUT OF OIL. Sorry to be so freakin' blunt about it. Hope that doesn't hurt our image :razz:


My point is that new supply will alter the timelines that peakers have written in stone. If peakers allow their predictions to ossify into dogma, and disregard unusual datapoints like this year of discovery, shale gas, demand destruction via the global debt-bomb, etc... then they are being just as ignorant as Michael Lynch and the deniers. You have to maintain an open mind.

pstarr wrote:
There is no movement.


Someone notify these guys.

pstarr wrote:
I...mostly only respond to jerks or for a laugh.


Which is the definition of trolling.


dsula
3 days ago • Sunday 2010-02-07 14:21:00 • Reply
Are you serious, Gentlemen? Fighting over such detail? Real-estate was supposed to happen with or without PO. PO made it happen a bit sooner. The same as chronic trade gap will eventually bring the US down to 3rd world level (if nothing changes). PO will only make it happen faster. The same as population growth will eventually lead to famines, with or without PO. PO will just make it happen faster.

Tanada
2 days ago • Sunday 2010-02-07 19:06:00 • Reply
Olaf wrote:
Interesting web page that I came across. Someone has probably posted it before, but thought I would share.

http://www.shadowstats.com/

Olaf


Thank you Olaf, this is the site I was thinking of earlier when I was talking about how distorted our current set of government approved and released stats are for things like GDP.


rangerone314
2 days ago • Monday 2010-02-08 05:24:00 • Reply
mos6507 wrote:
Imports don't tell the whole story. Price is more important, and we all know oil prices in the early 90s were at historic lows, imports or no imports.

And that does make you wonder if there wasn't some sort of backdoor agreement where oil prices are kept low in exchange for US pushing Saddam out of Kuwait and away from Saudi Arabia...


rangerone314
2 days ago • Monday 2010-02-08 05:26:00 • Reply
bratticus wrote:
diemos wrote:
bratticus wrote:

Do you have any explanation of why this was done?


Because the financial players had found a way to collect a fee up front for making a bad loan and then passing any potential future losses onto some chump. In the end, that chump became the US taxpayer.


So why did it take until the 21st century to try it?

Because entrepreneurial schemes, err... innovation, evolves slowly.


Tyler_JC
2 days ago • Monday 2010-02-08 09:37:00 • Reply
The Glass–Steagall Act prevented banks from engaging in riskier financial transactions by putting a wall between investment banks (Goldman Sachs) and commercial banks (your local community bank).

That's why we didn't have a collateralized mortgage debt obligations or any of those other fancy financial instruments until after 1999 when the act was repealed.

But none of that is related to the issue of oil prices and recessions.


Olaf
2 days ago • Monday 2010-02-08 12:27:00 • Reply
Tanada wrote:
Olaf wrote:
Interesting web page that I came across. Someone has probably posted it before, but thought I would share.

http://www.shadowstats.com/

Olaf


Thank you Olaf, this is the site I was thinking of earlier when I was talking about how distorted our current set of government approved and released stats are for things like GDP.


Don't mention it. :)

Peak Oil, Housing bubble. Just different recipes for the same sh!t sandwich. Now we all have to eat it. Ketchup?

I think the housing bubble was going to happen regardless of oil prices last year, but many people got significantly more crunched by the combination of the two. We can lose ourselves in the numbers and charts, cross examining data, defining and redefining terms, etc. (and that has its uses). Just don't forget the forest for the trees.

Olaf


Last edited by Olaf on Mon Feb 08, 2010 9:35 pm, edited 1 time in total.

mos6507
2 days ago • Monday 2010-02-08 12:58:00 • Reply
rangerone314 wrote:
And that does make you wonder if there wasn't some sort of backdoor agreement where oil prices are kept low in exchange for US pushing Saddam out of Kuwait and away from Saudi Arabia...


Occam's razor tells me to filter out such tinfoil.


rangerone314
2 days ago • Monday 2010-02-08 13:18:00 • Reply
mos6507 wrote:
rangerone314 wrote:
And that does make you wonder if there wasn't some sort of backdoor agreement where oil prices are kept low in exchange for US pushing Saddam out of Kuwait and away from Saudi Arabia...


Occam's razor tells me to filter out such tinfoil.

I know, I just tossed that one out there... I'm not saying there was or wasn't.

I always look sideways at something when things are too convenient.


bratticus
16 minutes ago • Wednesday 2010-02-10 15:35:00 • Reply
I came back to post about what luck I'm having with running the "4% of US GDP" numbers for 1973 but I see my thread is in ruins having been merged with an unrelated thread by some ridiculous moderator and being defecated in by countless off-topic posts.

I will find another web site to post about this topic in.


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