The new boom sector, page-5

The sharing out of the remaining oil is where the US may come unstuck.The world as a whole will not take to kindly to the US getting the lions share.Muslim extremists will be the least of their troubles.Many years before the oil runs out is when the crunch will come as yyou cannot wait until the last minute.Large companies have very long term plans,governments borrow over large time spans,infrastructure is paid off over many years.The present conflict in the major oil region,Caspian Sea/Arabia is setting the scene for the coming years.Whether the US/UK oil companies will be allowed to make political decisions as to where the oil will go will be interesting.As for me,investing in energy companies from uranium to shale will be the way to benefit from the coming sqeeze.Railroads,public transport and ticketing systems,solar,tide and wind generation,they are all going to have their day in the sun.The closing down of many petrol stations is a visible sign of how the oil companies see it;a petrol miser car will only need to fill up every 2 weeks or more if used less.There are so many industries that depend on oil as a raw material or as its creation of wealth.As it diminishes so does the industries and the wealth.The last oil crisis in 1973-1975 when the oil price quadrupled and brought whole economies to a halt.A doubling of the current oil price is probably needed to enable alternative industries and fuel/transport to be developed without too much interuption to economies.Personally I cannot see getting away with little disruption is possible,giving the ease that oil is produced at present.As most oil transactions are made in $US,less oil means less demand for $US and this may be what we are looking at now.Balancing the oil use and price to the $US will be a headache for governments.This is of course is helping gold,but only if gold becomes an acceptable payment between countries.