Re: Lfe after the oil crash

For those, like Janet, who think oil is forever, one should remember that what is happening to Brunei will eventually happen to the world. This is from that crazy left wing eco-freak journal, The Wallstreet Journal Asia. Everyone knows how far left and doomsdayish they are.
 

 " Bandar Seri Begawan, Brunei. His Majesty Sultan Haji Hassanal Bokiah Mu'izzaddin Waddaulah, has a problem: Oil is king in this tiny sultantate on the steamy island of Borneo, and it may be running out." Patrick Barta, "In Brunei, the Days of Easy Living Might be Over," Wall Street Journal Asia, Wed. Oct. 26, 2005, p. 26

"Oil production peaked as far back as 1979, and analysts now say the sultanate could face a serious output squeeze within the next decade. Last year, Brunei pumped out 206,000 barrels of oil a day, slightly less than the year before." Patrick Barta, "In Brunei, the Days of Easy Living Might be Over," Wall Street Journal Asia, Wed. Oct. 26, 2005, p. 26

"His majesty's 370,000 subjects have it pretty good, too. Although many live in ramshackle stilt houses, they pay no personal income tax, enjoy virutally free health care and often study at the world's finest universities on the sultanate's tab." Patrick Barta, "In Brunei, the Days of Easy Living Might be Over," Wall Street Journal Asia, Wed. Oct. 26, 2005, p. 26

That is 256 bbl of oil for each resident--at $40 bucks per bbl net (remember that there are costs associated with getting oil out of the ground), that is about $10,200 per year. But in the future, as oil goes down, they won't be able to afford all these perks and that will cause political instabilty as the goodies are taken away.

The real question for those who think oil won't run out is "Why do they think the entire world is so different from Brunei and immune to running out of oil?"

glenn
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Received on Thu Oct 27 18:25:17 2005