Tuesday, January 25, 2005
Before 2000, worrying about 2035 seemed unreal and very far in the future. 2035 is now within the timeline of a 30-year morgage on a house. That certainly puts it within easy conceptual measurement for me. Given the acceleration of consumption, 2035 may be optimistic. Personally, I'd invest in solar panels now.
With this in mind, it's very understandable what the US government has been doing in the Mideast. Iraq has, what, the third or fourth largest oil reserves in the world. I also think we will continue to see companies with investments in oil working to wring the greatest amount of profit out of the situation. Every level of energy consumption that relies on oil will grow more and more expensive. At the same time, profit margins will bring larger amounts of money into the companies as the price goes up. Example: 10% profit on $1.00 is .10 cents; 10% profit on $10.00 is $1.00. Oh, you don't think gasoline will reach $10 a gallon? I think we'll see it before the end of the decade. The price will be whatever the market will bear and scarcity will do a jitterbug dance on "supply and demand".