Sunday, April 13, 2008

Russia oil output to decline in 2008

The world's #2 oil producer and highest growing output country during 2001-2006 is expected to be producing less this year than last. It's year on year oil production increases have been slowing down.

Quote from Bloomberg.com: "Russian oil output may fall this year for the first time in a decade as the world's second-biggest supplier struggles with rising costs and harder-to-reach fields, Natural Resources Minister Yuri Trutnev said.

``Two years ago, we said the growth rate was falling, and we said this was bad for Russia, remember?'' Trutnev said in televised remarks after a government meeting in Moscow today. ``Now we're saying the production rate is falling this year. This is not a bogeyman, unfortunately, this is real,'' Trutnev said"

If you think $4/gallon gas is expensive, just wait till the whole world is in decline. $10+/gallon gas, easy. Europe pays equivalent $300/barrel when we are paying $100/barrel.. so oil is still relatively cheap. Consider it this way, gas is $0.15 a cup. Much less than starbucks coffee!

I suggest to get some fruit and nut trees, berry bushes and start learning to grow your own potatoes and veggies! This is what I'm going to be doing! Look at it in a positive light to learn something and get connected with nature, it will be fun and rewarding :)

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