Monday, April 9, 2007

Just Don't Say "Peak Oil"

Here's a recent discussion of collapsing energy production around the globe - courtesy of yet another mainstream source, the "Motley Fool," which itself draws on a recent article in the Wall Street Journal. They are looking for an investment angle on worldwide peak oil production (their advice - invest in drilling companies. Probably a good idea. A bit of gold probably isn't a bad idea either, as some Americans who have travelled abroad in recent weeks may have discovered). They make several mentions of Matthew Simmons, whom I've discussed briefly here.

Here's some investment advice of my own, for what it's worth - overlay the chart of the U.S. Stock Market from 1900 until 2007 with a chart of worldwide oil production (any good chart discussing Hubbert's peak will do). Funny how they both rise upward at about the same trajectory, ever higher with a few bumps along the way. If we're at the peak of oil production, you can draw your own conclusions where the stock market might be and where it's heading. Past performance is no guarantee of future results. Of course, too bad that the entire world is planning on it continuing as it has anyway.

While there's no shortage of "peak oil" articles online, here's a good introductory primer.

No comments: