If there is any single price of any commodity that determines the growth or slowdown of our economy, it is the price of crude oil. Too many things don’t calculate today in regard to the dramatic fall in the world oil price. In June 2014 major oil traded at $103 a barrel. With some experience following the geopolitics of oil and oil markets, I smell a big skunk. Let me share some things that for me don’t add up.
President Eisenhower is well-remembered for warning the public in his final address to the nation to “guard against the acquisition of unwarranted influence . . . by the military-industrial complex.” But it is little known that Eisenhower, in that same speech further cautioned that “we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite.”
In 1989 the chemistry professors Stanley Pons and Martin Fleishman reported that they had achieved cold fusion in a palladium anode emerged in a solution of sodium deuteroxide in heavy water D2O. Due to a bad exactness of their report, only few other scientists managed to replicate their findings in the first place. The findings were then dismissed as due to misunderstandings and bad scientific practice, and the matter of cold fusion has since been regarded as a taboo area.
The price of a barrel of oil has never been higher ($62.00+ in summer 2005 even before the chaos caused by Katrina). Some say this is a temporary spike, but more and more analysts are agreeing that this kind of pricing is here to stay. World consumption is at an all time high and given the new thirst for oil in China and India it is unlikely to diminish. According to International Energy Outlook, global demand is expected to continue to increase by as much as 59% in the next fifteen years.