Friday, February 25, 2005

Canary in a coal mine.

New presentations from Matthew Simmons, something to read and ponder.

First, this one here, a solid look at the oil situation in terms of peak oil.

Secondly, one that is more focused on how we got here, and where we may have gone wrong with energy pricing, leading us to overproduce and overuse energy in the past.

We may have both wasted energy and gone down a path of globalization that might not make sense with high oil prices.

This is fascinating stuff folks, and though it's possible we may be early, I think this stuff is right on target.

[I have a thought on his second presentation - China is sucking in high cost resources to produce and sell items cheaply all over the world. There is already huge competition in China and profit margins are tumbling. Are they bankrupting themselves in this equation? What does that suggest about investing in China in an era of high resource prices?]