Oil Drilling

The facts of life:

Drilling for oil does not equal pumping oil. That is why it is called exploration.

Any increase in supply goes on the world market. This is why the United States set a record for petroleum products EXPORTED for May, 2008 (See: Bush pushes oil drilling, but more US fuel exported)

McCain got paid -well- for his offshore drilling switch (See: Industry Gushed Money After Reversal on Drilling).

Even if oil is discovered in America's continental shelf, it would have no impact on prices until 2030 (See: Candidates Clash On Impact Of Offshore Drilling)

The New West

Residents of western U.S. states are not happy about the resource grab being attempted in the final months of the Bush-Cheney administration. This should be a signal to everyone that the color of national politics is changing.

MSNBC - Colorado, Wyoming battle Bush over oil shale

Malthusian

Coal, butter, rye, petrol... A once-in-awhile shortage of one commodity is an understandable market condition. Runs on several commodities simultaneously looks like a trend. This is why many experts consider this time to be different. It may be a painful decade as people are weaned off petroleum. Malthus' chickens are coming home to roost (to borrow a phrase from the news). See:

Japan tackling butter shortage amid higher raw milk prices, demand in Asia
Officials were hoping the shortage would subside with a planned price hike of the product by 8 percent to 10 percent beginning early May.

A Run on Rice in Asian Communities
...California rice farmers have begun planting this year’s crop of half a million acres, the high prices may prove only enough to cover their increased costs of fuel and fertilizer, industry officials say.

Bakers feeling pinch of short supplies
Rye flour stocks have been depleted in the United States, and by June or July there will be no more U.S. rye flour to purchase

Food price rise could last another two years
Products with the steepest retail price jumps were a 5-pound bag of flour, up 69 cents to $2.39; cheddar cheese, up 61 cents to $4.71 a pound; corn oil, up 58 cents to $3.01 a 32-ounce bottle; and dozen large eggs, up 55 cents to $2.16.

China Short Of Coal: 12-Day Reserve And Counting

Drivers are told not to panic buy as strike at oil refinery starts to bite
As the Forties pipeline - which supplies one third of the United Kingdom's oil and gas - began shutting down for the first time in its history yesterday, queues formed on forecourts in Scotland and northern England. Some petrol stations rationed supplies, while others were forced to close after running dry.

Gas and crude oil prices at GasBuddy.com:


Perhaps this summer will be the summer of hoarding as irrational conditions continue?

Past shortages and Malthusian predictions have been innovated out of, but what was happening is that the Population vs. Production graph was reset to expire at some other time in the future. This time climate change makes it different. In the end, nature wins. The energy shortages are being caused by the peaking of easily recoverable oil and it appears that a lot of the food shortages are rooted in an unprecedented drought in Australia.

Don't Cry For Me Pinedale

Aspen Times - Who will clean up when the boom is over?

CNN Money On The Pinedale Boom

Wyoming's natural gas boom sees growing pains

It may all be in decline in 2009.

End Of The New West Boom?

Via The Oil Drum - Is U.S. Natural Gas Headed Toward Excess Supply?

The likely transition of the U.S. gas industry from an era of a very tight supply and demand balance to an era of excess supply also relies on a surge in imports of LNG, beginning toward the end of 2008