Fuel prices

by the look of some of Graeme's rig photos, he may be use to spending other peoples money .. MAYBE

Richard

There is no question that Oz is the place to live, I do count down the six weeks until I am home again, but I have spent a large amount of time in third world countries and I do make comparisons and see areas Australia is lagging by comparison.
Richard, I do wish I had other people's money to spend on my rig but sadly I have to work very hard for what I get to be able to enjoy the freedom to do what I want to do at home.
In India the people I was working with when told part of my job was driving through the outback from one job to the other asked how we protected ourselves from bandits, and if we took an armed security with us as they do there. They were amazed at the answer.

Brian

The last I read the Pacific Highway is Highway number 1.

it goes through many states and Territory's not just NSW >>.LOL

Richard

Brian,I sincerely hope oil does not reach $250 a barrel as it will cripple the western economy. As it is at the moment I work for an airline which is the aviation side of the state oil company and they are oozing money, witness the brand new aircraft and helicopters arriving regularly and the expensive refurbishment of the older aircraft. I keep waiting for the bubble to burst!!

There is no doubt that it will reach $250pb and go a lot higher. The fact is current world oil production is 85mbd (million barrels per day) BUT demand is 87mbpd. And demand from India and China continues to grow at a faster rate than production. Its not rocket science to see what is happening. Planet earth has about 200 years supply of fossil fuels and we are about half way down the track of exhausting them. While there will be oil around for probably another 100 years it will continue to get increasingly more expensive. A Reserve Bank director (in a talk to the business council) said he believed energy prices are the biggest treat to businesses world wide - and he predicted a 10 fold increase in energy prices within the next 10 years - ie. oil at over $1000pb by 2018. Planet earth is consuming oil at the rate of 200,000 litres per second (24/7) of a non renewable resource. Of course the price will continue to rocket upwards in the coming years. There will be alternatives but they cannot be produced in the quantities required to replace fossil fuels.
We all need to prepare for significant structural changes that will occur in our society and economies in the coming years (where we live and work, what type of vehicles we drive, how often we drive etc etc).
Cheers,
Glen

do really belive that,i reckon if the world ran out of oil tomorrow we would have a replacement next week ,how old hat is the engine -ive got a tractor out the back that is over 50 yrs old running on the same priciples as todays motors (pistons etc)bet you wont find a50yr old computer doing the same
more likely we need to look at the worlds population employed by oil and its offshoots to understand why nothing new has been allowed to come into the picture as yet

I should have proof read it first - "biggest treat " should of course read "biggest threat"

Richard
Highway 1 is a compendium of highways around the country... eg The Princes Highway from Sydney to Melbourne is Hghwy 1, The Bruce Highway north from Brisvegas is Hghwy 1, The Pacific Hghwy from Sydney to Brisvegas is Highway 1, etc etc etc around the country.

There are still vast reserves, as a couple of years ago in Algeria I was talking to an Australian petroleum engineer who was saying that now the price had gone up it was economical to tap the deeper reserved which were huge. I believe our survey identified even more areas to drill.
Canada has huge shale deposits which are now coming online and that alone has the capacity to supply the worlds needs for a very long time http://www.oilscenarios.info/oilbasics.htm.
It is the rapid industrialisation of China and India, which if the world has a recession will hit and slow these countries therefore lessening the demand for oil and therefore the price.