Water Is Not Everywhere!
June 7th 2008 19:07
First it was Georgia facing drought conditions, now California Governor Arnold Schwarzenegger declares California in a state of drought
The lack of water has created other problems, such as extreme fire danger due to dry conditions, economic harm to urban and rural communities, loss of crops and the potential to degrade water quality in some regions.
I finished writing a piece at Mover Mike entitled Yamada: Oil Could Pass $450 In a Decade Louise Yamada, managing director of Louise Yamada Technical Research Advisors, "sees oil going to $450 inside a decade" based upon increasing demand for oil AND the populatiion of the earth growing from 6 Billion people to almost 9 Billion.
One of the questions we all must ask of any prognosticator, be it (gasp!) global warming or oil prices, is what premise or premises underlie your projections. In Yamada's case, one could argue that population remains flat. What does that do to your oil price conclusion.
In a piece at Financial Sense, Puru Saxena writes in Back To Basics that "Supply (of food) is failing to keep up with rising demand." One reason Saxena suggests is lack of water.
(i) The Chinese are demanding more meat in their diet. The more meat in a person’s diet, the higher the water usage.
(ii) Arable farmland is shrinking
(iii) In order to increase crop yields, farmers have been using more fertilisers, pesticides and genetically modified seeds.
(iv) Water shortages are becoming a serious problem for increasing food output throughout the world as widespread urbanisation is competing for the same water.
(v) Supply of water is declining
AND the crazy idea: “let’s burn food to produce fuel” policy
(ii) Arable farmland is shrinking
(iii) In order to increase crop yields, farmers have been using more fertilisers, pesticides and genetically modified seeds.
(iv) Water shortages are becoming a serious problem for increasing food output throughout the world as widespread urbanisation is competing for the same water.
(v) Supply of water is declining
AND the crazy idea: “let’s burn food to produce fuel” policy
Here's my crazy thought: What if droughts cause millions of people to die off around the world. Will we still have oil prices at $452?
What if food prices skyrocket, will we still have growing economies demanding more oil?
What new inventions spurred by higher food prices will come along to help meet the food shortage or make land more productive?
The high price of oil has spurred the development of hybrid and electric cars. What new wonders will we see in reaction to high water prices?
Is the glass half full or half empty?
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Comment by Howard
Real Crash
We are dealing with a bunch of speculators centered in London, UK and Dubai, as part of the British Empire system. They need to be shut down, or locked up, and then the price of oil can go down to $40/barrel. That's all.
If you want water for more people, you have to build infrastructure.
Comment by Mike Landfair
Market Bugle
This is a list of some of the products made from oil. Nearly everything in our lives is made from oil, made by machinery and systems dependent on oil, and transported by oil as either gas or diesel fuel.
Ammonia, Anesthetics, Antihistamines, Artificial limbs, Artificial Turf, Antiseptics, Aspirin, Auto Parts, Awnings, Balloons, Ballpoint pens, Bandages, Beach Umbrellas, Boats, Cameras, Candles, Car Battery Cases, Carpets, Caulking, Combs, Cortisones, Cosmetics, Crayons, Credit Cards, Curtains, Deodorants, Detergents, Dice, Disposable Diapers, Dolls, Dyes, Eye Glasses, Electrical Wiring Insulation, Faucet Washers, Fishing Rods, Fishing Line, Fishing Lures, Food Preservatives, Food Packaging, Garden Hose, Glue, Hair Coloring, Hair Curlers, Hand Lotion, Hearing Aids, Heart Valves, Ink, Insect Repellant, Insecticides, Linoleum, Lip Stick, Milk Jugs, Nail Polish, Oil Filters, Panty Hose, Perfume, Petroleum Jelly, Rubber Cement, Rubbing Alcohol, Shampoo, Shaving Cream, Shoes, Toothpaste, Trash Bags, Upholstery, Vitamin Capsules, Water Pipes, Yarn.
The world population is expected to grow from 6 Billion to 7.6 billion people by 2020 and since they are earning more money will want more of the above.
There will be many who will gladly TAKE your share!
Comment by Michael Ugulini
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Comment by Mike Landfair
Market Bugle
As for the second piece, I belive I now have that taken care of.