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Senior Advisor

Re: Oil men and farmers, two different paradigms

It turns out that fracking turned out to be a $T fraud.

Irony, if you call it that, is that they came in too early on the curve. Conventional oil capacity peaked sometime late in the last decade but that didn't mean that there wasn't still a lot of it to be pumped.

If the frackers had come in a decade later (all things being equal) when serious declines in conventional oil production will set in, they would have had enough price to make it work. That's probably somewhere north of $100 crude and $5NG.

And I'm far from sure that all things would be equal. The fossil fuelers know that they now have serious competition even without a regulatory agenda. 

BTW, I tried to start this conversation a while back but was met with either hostility or disinterest. As the liquid fuel market shrinks, the biofuel biz needs to figure out the basis on which it maintains its volume.

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Honored Advisor

Re: Oil men and farmers, two different paradigms

$100 oil would be good for farmers, then you can have a "$5 corn story".  Fertilizer seed ect would be higher, but we`d have more money to shuffle around to sneak in a profit.  Consumers would be paying $4 for gas, but less driving for various reasons, $4 gas isn`t a economic killer that it once was.  

Price is always going to ration gas, so if there is a "peak oil" we`ll never notice it.   Unless there`s a Black Swan, ie M.E nuke war and oil fields glowing in the dark for the next 1,000 yrs, Yellowstone blow it`s stack, ect  $50 oil is probably the best we can hope for.

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Senior Advisor

Re: Oil men and farmers, two different paradigms

Sure.

And tax cuts always pay for themselves, and create enormous investment too.

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Senior Advisor

Re: Oil men and farmers, two different paradigms

The thing about the oil complex is that it has been the major funder of The Cult of Ignorance.

Corporate Ag is a bit player and others.

The operatives and structures actually trace their heritage (no pun intended) back to the tobacco lobby.

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