A harbinger of things to come...

 

 

 

"I guess it is true that all good things will come to and end..."

Yesterday the market tanked once again. The major culprit this time? Oil. Who would have thunk it? Oil worldwide, is starting to bottom out. Even though the demand keeps increasing from emerging former third world countries, supply is now running ahead of the demand. And that has sent the price of a barrel of oil tumbling from over $100 to less than $60. Ouch!

Some "greenies" might get their undies in a bundle over this story. Think of the hydrocarbons of having all that extra oil floating around! However here are the straight facts. Even though we are in our hay day of oil right now, the days of oil being a primary energy source are numbered. Soon the demand will again outpace supply, and the price for a barrel of oil will increase.

The Bakken Fields are starting to "cold stack" rigs. They are slowing down production. The oil that remains in the ground is like money in the bank for us. Whereas the Saudis are coming to the end of their oil rainbow real fast, our current and projected supplies of oil will last quite a bit longer.

Before some think of oil as a villain that we can do without, we need to keep in mind what oil is used for. Besides a 42 gallon barrel of oil creating almost 20 gallons of gasoline, the rest of the barrel is also used in the manufacture of goods. How many goods? About 6,000. Goods as varied as tires, vitamins, makeup, fertilizers, linoleum, soap, shoes, tape and the list goes on and on from there.

So the world running out of oil is in the future, but not the near future. The smart money is to maximize our potential during these good times by developing the next big in energy. More cars that run (efficiently and with adequate power) on natural gas. Fuel cell technology which will allow cars to run on water. Electric cars that are truly efficient and can good for hundreds of miles between charges. Better synthetic fuels that truly are as good as petroleum.

As for 2015, the party is on! Even though Bakken is slowing down, 2015 should still be a good year for drivers. Not so much for people who have overloaded energy stocks in their portfolios. Also not so much for the Russians and the Iranians. As for me, I am already planning our road trips for next summer!