The Price of Oil

The world lives or dies by the price of oil. (most of it). This is changing in the most developed countries by the use of solar, wind, electric cars, hybrids etc. But, for 50% to 70% of the world those countries live or die completely by the price of oil.

Right now as we contemplate this the very low price of oil might be the ONLY thing keeping most of the world from going into another Great Depression economically, especially with the stock market changes worldwide and the more extreme economic problems that China is presently experiencing. The price of oil once again right now likely has saved the world unbelievable problems at present because the low price (didn't break the bank completely) of China and other vulnerable countries economically right now.

So, what happens if and when the price of oil goes way up once again?

Enough people understand the present dynamics who are in the oil business worldwide that at that point they will be okay. But, for the rest of us high oil prices will devastate a lot of the world, simply because the present conditions are Wartime conditions (in the middle east) and all large dynamics are caused by this war there.

So, as long as ISIS, Iran, and Russia would benefit from high Oil prices, Saudi Arabia and others are going to make sure oil is as cheap as possible. Once again the only reason oil is this low is all the middle Eastern wars.

So, Market rules of the price of oil don't really exist right now because all prices are presently controlled mostly by Saudi Arabia's need to continue to exist as a country.

Another factor I was thinking about today is there is only so much oil in the ground worldwide. And presently there have been no new "Big" oil finds on land since the 1960s or 1970s anywhere on earth of drillable oil.

So, that leaves drilling for oil in the oceans (especially in the arctic now the ice is melting) and this is why so many Russian, Canadian, Chinese and other national ships are in the Arctic oceans lately. Because they realize this is the future of oil too for their nations as well. So, there is a scrambling for future oil taking place and even in some ways a war for future oil in the arctic as well.

However, it is also possible that the Maunder Minimum within 15 years could bring some or all ice back into the arctic for about 30 or more years from 2030 to 2060 or 2070. So, they all know they might only have 15 years to drill for this oil before the ice sets in for the next 30 or 40 years also.

So, the point of all this is: "The world lives or dies on the price of oil".

And at some point: 2, 5, 10 or even 20 years from now, the price of gas and oil and diesel will rise and that could devastate most of the world economically and even create another Great Depression worldwide if it wasn't handled correctly.

The U.S. at present likely might handle this the best because of all our oil reserves but for countries without oil within their borders those governments might well cease to be when oil becomes too pricey to farm or to haul food for those countries at prices people can actually still afford to buy food at.