Things change with time: not long ago the rich were supposed to be fat and well fed!!
Now the rich are slim and trim.
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The rich had carpets on the floor.
Now the rich have wooden floors and poor have carpets. (In US at least)
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We will see a change in trend. You would be rich if you have your own vegetable garden and work from home.
While the poor will commute to work and shop in stores!!
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It was fashionable to eat the most exotic fruits and vegetables. Now it is fashionable to eat local grown “organic” vegetables..
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So the demand curve will not shoot up while resources drop the demand will shift to a new medium.
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As the Saudi minister said. “We did not move out of stone age because we ran out of stones!!”
The oil producing nations are living in fear that if and when the demand for petroleum drops they will be finished. 80% of all fuel used is for transportation so, a global move to efficient mass rapid transportation will sound the death knell for Auto companies and refineries and oil producing nations.
Go to you tube and search: http://www.youtube.com/watch?v=F-QA2rkpBSY&feature=channel
Most important video you`ll ever see
Globally Growth is going to fail, as we do not have the resources to sustain it..
Now the rich are slim and trim.
=================================
The rich had carpets on the floor.
Now the rich have wooden floors and poor have carpets. (In US at least)
=================================
We will see a change in trend. You would be rich if you have your own vegetable garden and work from home.
While the poor will commute to work and shop in stores!!
=================================
It was fashionable to eat the most exotic fruits and vegetables. Now it is fashionable to eat local grown “organic” vegetables..
=================================
So the demand curve will not shoot up while resources drop the demand will shift to a new medium.
=================================
As the Saudi minister said. “We did not move out of stone age because we ran out of stones!!”
The oil producing nations are living in fear that if and when the demand for petroleum drops they will be finished. 80% of all fuel used is for transportation so, a global move to efficient mass rapid transportation will sound the death knell for Auto companies and refineries and oil producing nations.
Go to you tube and search: http://www.youtube.com/watch?v=F-QA2rkpBSY&feature=channel
Most important video you`ll ever see
Globally Growth is going to fail, as we do not have the resources to sustain it..
What is Reliance doing now? Connections to what I said above.
1. Reliance is generating a lot of Cash which it does not have a place to invest.
2. Oil business in itself is in a decline.. Global warming and peak oil both are negatives.
3. These new frontiers (power/telecom) are going to be the future of Reliance.
Telecom and Power are cash guzzlers and for the next 5-10 years all cash flows from Reliance industries can flow into these sectors..
It is a calculated bet, why else would you see Reliance sell the equity it was holding in its reserves?? A few months back?
2. Oil business in itself is in a decline.. Global warming and peak oil both are negatives.
3. These new frontiers (power/telecom) are going to be the future of Reliance.
Telecom and Power are cash guzzlers and for the next 5-10 years all cash flows from Reliance industries can flow into these sectors..
It is a calculated bet, why else would you see Reliance sell the equity it was holding in its reserves?? A few months back?
Question is when "Peak oil" is made public. Will the Govt of US or India for that matter allow Reliance/Exxon to use the gas as Reliance/Exxon would like to use??
I dont think so!!
That is one reason Reliance was going to buy the chemical company because petroleum products can be used more efficiently in manufacturing speciality chemicals, fertilisers than as automotive fuels.
Most likely when the oil crisis hits the world we will see::
I dont think so!!
That is one reason Reliance was going to buy the chemical company because petroleum products can be used more efficiently in manufacturing speciality chemicals, fertilisers than as automotive fuels.
Most likely when the oil crisis hits the world we will see::
- Ban on private transportation.
- Ban on private use of petroleum products.
When there was a shortage of rice, we banned rice export which is renewable asset as we can grow it.
Unfortunately oil is a non renewable asset.
- Ban on private use of petroleum products.
When there was a shortage of rice, we banned rice export which is renewable asset as we can grow it.
Unfortunately oil is a non renewable asset.
ü Do not know much about Crude pricing.
ü Only thing that I am certain about is the peak oil theory and it is just round the corner. (maybe 5-10 years down the line).
We must understand that wealth of an individual (and of nations) is determined by the amount of energy used/available at his/her disposal. This is true even today
A Poor farmer has a cycle and a pair of bulls for farming. While a well off farmer will have a tractor and a motorcycle/vehicle at his disposal.(more energy.. consumption)
Even in case of an urban household a more well off household will have washing machine, dryer, airconditioner, water filter, microwave, car, SUV and the total consumption of energy per person is higher.
The same no of people in not so well off household will have a much lower energy consumption pattern per person.
In fact every Rupee we earn is nothing but a currency to purchase/trade energy. We pay and receive energy in return.
A Poor farmer has a cycle and a pair of bulls for farming. While a well off farmer will have a tractor and a motorcycle/vehicle at his disposal.(more energy.. consumption)
Even in case of an urban household a more well off household will have washing machine, dryer, airconditioner, water filter, microwave, car, SUV and the total consumption of energy per person is higher.
The same no of people in not so well off household will have a much lower energy consumption pattern per person.
In fact every Rupee we earn is nothing but a currency to purchase/trade energy. We pay and receive energy in return.
Long term Global growth is suspect.. even Indian growth is suspect!!!
- When there is no growth then demand for consumables will drop and so will the interest rates fall.
- You will see a fall in all energy consuming goods and see an increase in Video games..TV..3D.. and other not so energy intensive forms of entertainment.
- Food.. medicine.. shelter.. demand will exist but not increase..
- Electrical grid/gas pipelines will gain prominence as the only efficient way to transport energy.
- Wireless networks.. Internet.. will also benefit from drop in movement of goods and personnel..So the moves made by Reliance makes much sense strategically!
- When there is no growth then demand for consumables will drop and so will the interest rates fall.
- You will see a fall in all energy consuming goods and see an increase in Video games..TV..3D.. and other not so energy intensive forms of entertainment.
- Food.. medicine.. shelter.. demand will exist but not increase..
- Electrical grid/gas pipelines will gain prominence as the only efficient way to transport energy.
- Wireless networks.. Internet.. will also benefit from drop in movement of goods and personnel..So the moves made by Reliance makes much sense strategically!
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