That the United States is not the epicenter of the Universe, that the sun doesn’t rise and set according to what happens in the United States, will come as a major blow to most Americans.

I’m American, but have lived in Mexico for the past seven years.

I visit a number of U.S.-based economic blogs frequently, reading the posts and comments, and never cease to be amazed by the paroquialness and US-centeredness of otherwise very intelligent people.

What I observe is denial on the part of most Americans. There is some acceptance that other important economic players have emerged on the world stage, that it is no longer a uni-polar world. But there is absolutely no awareness that the philisophy that allowed the U.S. to dominate the global economy for so many years–classical liberal economic theory– has been rejected by all but a handful of people in the world.

The economic problems the US is experienceing may have some ripple effects throughtout the world. These effects will be less than what they have been in the past, but more than what they will be in the future.

Paul Donovan’s analysis is rather facile. How is the increased wealth, that flows to the oil producing countries, distributed? If billions of USD end up in the bank accounts of oligarchs and royal families, then few are sharing this new wealth, whilst many millions
perhaps billions, of people are less well-off insofar as they have to pay more for oil products. They will as a result be cutting their expenditure on other goods and services. The result is a fall in demand, and rising unemployment.

However there is reliable evidence that speculation and leverage is the reason for much of the rise in the prices of oil, grains, metals and other commodities. This pure speculation has to be stopped; it is unnecessary, unfair, and cannot be justified on economic, moral or political grounds.

I agree with u up to a point, we are exactly STRONG enough to withstand the recent escalating crude oil price or whatever, nevertheless, as the infrastrucre constructions proceeding in Middle East or Russia, their need for oil is escalatingly hardly to meet. What if that situation happens someday? We’ll definitely suffer from more than before.

Oil prices are rising in part because there’s not enough of it. A lack of sufficient oil could definitely, it seems to me, slow down the world economy (especially because all other non-renewable resources are getting scarcer too). The world population is growing and we have to share fewer resources with more and more people. Surely this must spell crisis at some point if we don’t switch to renewable energy.

High and ever increasing oil prices not affecting the global economy? Speak to anyone involved in transporting people and/or goods, or farmers working their land, and they will tell a different story. Speak to the average consumers facing higher heating and food costs, and they’ll look startled. Whether one should trust the comments from a senior economist at UBS, a bank with an unenviable track record in sub-prime losses, is another question. The current economic downturn in the USA will logically affect EU countries exporting goods to that (former?) economic superpower, although to a lesser extent with the option of diverting exports to markets such as India and China – who in turn depend on exporting a large share of their goods to the EU and the USA. The present international economy is a bit like dominoes lined up: push one and the others fall down as well. So much for economic theory in my opinion.

The fact is that the global economy is based on what used to be cheap energy, the exponentially rising cost of which will eventually shake the very foundation of all economies around the globe. Expect a monster global depression (1929 was a holiday compared to what lies ahead) unless a viable cheap energy alternative is discovered and implemented in the next 15-20 years – the world economy is too intertwined for one or the other nation to escape that looming storm. The present islands of luxury in the Middle East and the Russian economy are purely based on astronomical oil and natural gas revenues (artificial economies), and will not outlive the time when all known global oil reserves are depleted, sending the global economy into a spiral dive.

I disagree with the view completely. Where is Mr. Foster coming from? Does he think that all these Middle East countries or Russia could Survive on their own? All these countries will crush into smithereens without goods, services provided by countries like USA, UK and others. Oil producing countries can’t eat oil for breakfast , stupid!

In the U.K., we are currently been asked to pay obscene prices for our petrol and diesel. Why?.

My wife was recently in Oman where she filled up the tank on her hire car for the equivalent of five British Pounds.!!

Similarly, I have just returned from 3 weeks in Canada where rocketing pump prices are now nudging One canadian dollar and 32 cents per litre, about 40% of the cost being imposed here in England.

So, is it not just a case of a greedy government trying to recoup its “out of hand” borrowing policy by taxing us all in yet another of the many ways adopted since Labour came to power.

The prices of fuel in the middle east and north america, prove that oil prices are not the main cause for our current recession, as widely regarded, but taxation is !.

I will agree that the growth of economies in India and China are having a global effect, but western economies will no longer dominate the world, as Arab oil money funds the growth of foreign economies at our expense.
The World is changing and the good times , for the west, are ending.

I find it truly hilarious to watch the continuing stream of horrified US citizens complain about the fuel prices. For ages, the car fuel prices in Europe have been far higher as what they are in the USA today, and this was considered entirely normal. For these same ages, US citizens have been driving absurdly big engines, and US car makers have been designing ridiculously inefficient cars. How on earth does a (former?) world-leading society allow itself to live so shortsighted, find itself taken by surprise by the consequences thereof, and then blame & complain on TV in front the whole world?

Needless to say this topic has everyone’s attention. Everyone has valid points but some times I think we are missing the point. As laymen Americans we cannot afford to think of this simple local/country issue. It is global. I’ll ask this- Is this increase in fuel prices partially attributed to the ‘US mortgage crisis’? Our mortgage loans are all tied into securities and stocks which are traded globally. Is this spike in prices a way of recuperating those losses? If so how long does this trend last and how is the average consumer going to know the difference other than at the pump?

The oil problem is global and is going to be with us for a long time. First oil is finite, second we can only pump out and refine the oil we do have at finite rates (we can’t simply pump and refine oil at an ever increasing rate), third the most easy and plentiful oil has been found and developed, fourth the easy oil by most informed accounts is at its natural limit of production. Fifth the world uses around 86 million barrels a day, and with the rise of China and India the number will rise.

The question then becomes how can we possibly raise production to meet an ever increasing demand? Its not as if nature will provide energy to us at any rate we wish, barring dubious free energy devices, nature has its limits. I suggest people do research on “peak oil”.

How about looking at this another way? A Change? How about this? We Produce oil, unlike europe and some other countries. How bout something radical? Like, we as the american people, who have a nationally important resource, keep it for ourselves????
How this would work - simple: Every american will get a coupon for monthly amount of gas, say 100 gallons, at say $2.00 a gallon. Once you run out of your amount, you have to buy from exxon or whoever at the going price. Hmm. Think about it. If you have left over, you can sell it. If you need more for your hummer, you can afford to buy it. If you are green, you make a profit. Hmmm. Think about it. Make it a law that american gas stays in america for americans at our cost plus say 4% on top of costs to get it to us - refining etc. Yeah. Businesses can apply for additonal amounts. Talk about real competition in the marketplace, this would make every American able to get reasonably priced fuel and choose how to use it and if and how to sell it. Why not? If you dont like it, how about we ask our government to do something about the rampant speculation that our vice president and others are benefitting from? After all, demand has not doubled in the last 6 months. Supply and demand has not fluctuated, only the prices have. If you do like it, you might like this: If you taxed the 2$ gas 25 cents a gallon, all americans could have universal health insurance. There might be enough left over to subsidize research and development for the pharmaceuticals who will complain of lacking incentives (though, really, the ride is about up, folks) Hmmm. It is worth thinking about.

Glenn is right. Most Americans only see the World in terms of what affects them personally, It’s a much bigger Planet with a Global economy. I’ve seen that in my many trips to Asia. I try to learn as much as I can about how Asians cope with high fuel cost and modest incomes and apply it to my situation when I return home. Things are tough, but most people are afraid of change initially. The strong adapt quickly, and lead the way home. Remember, the Sub-Prime mortgage crisis and Foreclosures only directly affect 2.5% of all mortgages. That means 94-96% of the mortgage industry is still solvent, if not profitable. We’ll adapt to higher fuel prices or die trying. My household is doing OK because we made the switchover to fuel sippers a year ago.

It is true that staggering wealth is being transferred from the West to oil producing countries, and also to Asia; and while not quite as simple as Foster says, is a clear indication of the world of the future with a declining America and Europe, and an ascendant Asia.I say Asia, and not the Middle East, because in the next 30 years the oil will run out, and where will that leave them?

As America goes into deep prolonged recession lasting many years, the rest of the world will also suffer for a while, but only for a while, and Asia will emerge much more quickly than the West, much more stronger than before, and this time for ever divorced from dependence on the U.S. with its own fully developed and self-contained economies.

Oil prices are not based on speculation but substantially on a declining dollar and rampant worldwide inflation, which is being masked by false reporting. To add to this is the fact that there is now a supply deficit, as T. Boone Pickens recently explained, exacerbated by massive Chinese hoarding of oil, and the declining output of the world’s major oilfields, as well as the refusal of America to exploit its own oil and gas, according to the fatuous green NIMBY principle (not in my backyard). We have already arrived at Peak Oil, and this situation will only get worse in the years to come as it will take a decade or more to switch to alternative energy such as nuclear power, or even wind power.America is still arguing whether it is desirable to develop alternative energy and will be left far behind as China builds hundreds of nuclear power stations in the next 30-40 years, with 60 of them already on order. America and the West spends its time shooting itself in the foot while China gets on with planning to live in the future. Can anyone doubt who will become the ascendant power?

I beg to differ - a global economic recession is on the way irrespective
of global economic shifts and situations. Oil is just a resource sample. Let us learn from it.

True, it may seem like wealth is moving around the world but that is only a ‘made in Hollywood’ illusion.

What i am saying is, defining wealth depends on who you ask.

Those who believe in the sustainability of world economic systems
probably also believe in perpentual motion. It is only a matter of time before the world economic system(s) will run out of steam.(fuel)

It is part of man’s nature (his limited life span) to rape and pillage the planets resources without considering the time (no limit) it takes nature to re-cycle.

Nature does not waste - EVERYTHING is recycled. We have to work along with nature in order to build a future and not against it..!

Absolutely _ Cant’ disagree more than what you have said :

Oil & Gas energy crisis ? _ Take it easy guys, irony I don’t see it becoming a problem. The Law of the World Energy _ supply and demand have been at work; things will line up adjusting themselves. Remember we get used to issues of shortages of resources notable as supply related to energy: OPEC Oil embargo; Nationalization of Foreign Oil Companies; PSC _ Production Sharing Contracts with most profits are maximized to the Oil Producing Companies etc. See Shell & Chevron operations in Nigeria; do you guys see anything wrong with their operating philosophy ? thence what had happened with the Nigerian blowing up the crude oil pipelines ? Hope you guys will be able to comprehend hence see the amazing ways systems will take care adjusting themselves to one of the law of universe _ the law of earth of world energy supply. The scope of world energy supply will not be limited to earth only. See the scope beyond earth in the Solar Systems for example. The Sun it self has been there forming unlimited resources of energy supply _ notable in terms of radiations of nuclear fusions _ so why not human on earth had been at work priority to maximizing harness that ” Unlimited Supply of Energy ” as main supply or center of energy resources rather than narrowing down the scope of energy supply on Crude Oil found only on earth.

Next ask NASA progress in their efforts with the development in the Solar Systems _ Space exploration. NASA recent report _ according to NASA space exploration: Bulk Chunks of Ice made of Methane Gas forms massive landscape on Saturn Moons, estimate surface temperature << minus ( - ) 180 deg C. These reports are results in preliminary status of space probes released by Cassini at the Saturn Moon atmosphere; Further exploration by NASA _ hence support by “ Oil Companies “ will be required to assure confirmation. Compare to LNG technology, the following excerpts are copied, as follows :

“ Quote
Titan has an atmosphere. This can be seen faintly in the image on the left as an outline, and more clearly in the following image xx; taken by Voyager looking back at Titan and showing sunlight scattering in the atmosphere. The atmosphere of Titan has several layers of haze. It has a pressure at the surface of 1.6 times that of Earth, and is made up primarily of nitrogen, with about a 1% concentration of methane. The temperature on the surface is very cold, about -180 degrees Celsius. The atmosphere is extremely opaque because of thick smog that appears to result from sunlight interacting with hydrocarbons, much as smog forms on the Earth.
The clouds are probably composed of liquid nitrogen and methane drops, and it is speculated that Titan may be covered with hydrocarbon lakes or oceans (specifically, methane and ethane). Although many of the organic chemicals thought to have been the precursors to life on Earth are present on Titan, it appears to be too cold for life as we know it to have evolved there. Here is a movie of infra-red images of Titan made with the Hubble Space Telescope. The structure shown in this animation represents heat variations in the atmosphere and surface of Titan.
Unquote “

Proposals_ Will it be possible for the World Oil & Gas Global Companies to get together to include in its GameChanger a consideration in Scenario 2010 _ 2080 to get methane bulk ice from the out side _ from Saturn Moons for example. Scientists and engineers gas industry will strive to develop methods of outer space bulk pick up & transport of gas ice in the extra super cold of super lower cryogenic _ temperatures; to be work around _ about the use of development of rocket technology, space ship _ bulk container & transport, electromagnetic radio & remote controls tech. applications, etc.

The World Oil & Gas Global Companies will assume responsibility to strive with ingenuity, global power scopes & resources harnessing potentials that extend across technology & business boundaries _ human energy, treasures, finance, world energy with in the planet earth : fossil fuel _ oil, gas, coals, bio; heat _ geothermal, wind, tides; fusion radiation _ nuclear & solar wind. Get energy & resources from outer space planet earth in the universe : closest example _ methane gas from planet Saturn & Moons; Heat from Solar Nuclear Power Fusion & Radiations.

What the irony _ the NASA spent billions in terms of R & D outer space rocket, nuclear, space techs & sciences; had successfully developed space transports Columbia & Discovery; but the World Oil & Gas Global Companies on earth remain behind struggling upon savings of incremental pennies searching for and producing fossil fuel Oil & Gas 3000 meter beneath / out of earth crust _ in access deeper than 2000 _ 3000 meter upon sea bed, at ever increasing cost hence prices to be supported and paid by consumers, which are nobody else but the human in the community themselves. NASA will strive forward development of the need for better, advanced and improved transport technology to cater with requirement of the extra super cold bulk ice movement of methane gas from the outer space with in Solar Systems _ the Universe.

It will be coming time for human & man kind in the community _ to get together, rather than competing each vs one against another in the business of harnessing fuels oil , gas & energy; they are still abundant on earth and untapped on space in the universe. Make sense ??? Yes why not, this is consistent with the Shell _ the member of the World Oil & Gas Global Companies ideas of putting the concept of GameChanger up front. I would personally suggest to go forward by looking upon immediate, the big pictures of energy laid out ahead cut and clear view up front human eyes, brains & knowledge.

Good Luck & Thanks Iskandar Ibrahim.