Pemex At Lowest Levels Ever while Carstens Makes a Bid for IMF #peakoil #collapse #dsk

You can be sure that Carlos Slim is heavily invested in PEMEX bonds which essentially is privatizing without public support

Clipped from www.bloomberg.com

Pemex Oil Output Declines at Fastest Rate Since World War II

Jan. 20 (Bloomberg) -- Petroleos Mexicanos, Mexico’s state oil company, will probably report its fastest drop in production since 1942, eroding revenue as plunging crude prices limit the amount of cash available to drill for new reserves.

Pemex last year likely extracted 2.8 million barrels a day, down about 9 percent from the 3.08 million a day pumped in 2007, representing a total of $20 billion in lost sales, according to data compiled by the government and Bloomberg. The Mexico City- based company, which had revenue of $104 billion in 2007, plans to report annual production figures tomorrow.

“The fall in oil prices and lower production is going to make expensive exploration projects less attractive now.”

Pemex’s “biggest problems have yet to come,” said Alejandro Schtulmann, head of research at Empra, a political- risk consulting firm in Mexico City, in an interview. “The fall in oil prices and lower production is going to make expensive exploration projects less attractive now.” Read more at www.bloomberg.com

 

Some historical gas price increase due to #oil speculators, more 2 come w/ #peakoil

Investors are anticipating oil price surges due to #peakoil, how broad is that?

Clipped from www.wyattresearch.com

Regulators Sue Speculators for $150 million

The Commodities Future Trading Commission (CFTC) announced yesterday that they are suing two oil traders accused of manipulating the oil markets in the 2008 run-up to $147 per barrel oil. Read more at www.wyattresearch.com

 

Great News: US Manufacturing Wages Will Be Lower Than China's in 5 yrs @collapse #peakoil @chrislhayes @maddow

Really? The BCG study suggests that US manufacturing workers are 3x more productive than China's, that their wages are growing rapidly, and that companies are opening plants in the US because labor is so cheap.

Chinese manufacturing cant grow 17% a year for 5 yrs without ENERGY and we understand that China is facing the worst energy crisis ever.
http://www.foxnews.com/world/2011/05/17/chinas-energy-crisis/?test=latestnews

So where will the US get all the natural resources and steel needed to manufacture goods? Especially with oil costing more than $120 a barrel?

Ok, here is the jobs plan from US politicians.

Oh, but wait it also says this: If the U.S. can not maintain or expand its wide productivity advantage vs. China the the projections quoted are likely to be modified to the detriment of U.S. manufacturing.

That means US Sweat Shops Likely - productivity means more hours, no unions, no healthcare, etc. USD drops and thats good for us! Yahoo.

Clipped from econintersect.com

U.S. Manufacturing is Coming Home

Econintersect (Updated May 5):  According to a report by the Boston Consulting Group (BCG), manufacturing is on the increase within the the U.S.  The study concludes that the U.S. will surpass China in manufacturing production of goods sold in North America over the next four years.  The U.S. lost the world lead in manufacturing that it had held for most of the twentieth century during the weak recovery from The Great Recession.  According to data from IHS Global Insight, quoted by the Financial Times, China had 19.8% of world manufacturing output with the U.S. second at 19.4% in 2010.

A key factor in the U.S. manufacturing resurgence comes from labor productivity, which is more than 3x that of China.  With the wages in China growing at a much higher rate than in the U.S. the productivity advantage is drawing domestic production back home, especially for the "more sophisticated" producrs mentioned in the FT article.

Among the U.S. corporations mentioned by the FT which have announced plans for major investments in new U.S. manufacturing are Caterpillar, General Electric and Ford.  In the first quarter of 2011 manufacturing production in the U.S. rose by 9.1% (annual rate), making it the fastest growing segment in the U.S. economy.

On May 5, as discussed at GEI Analysis by Steven Hansen, The BLS (Bureau of Labor Statistics) reported an unexpected drop in labor productivity growth.  Productivity is a key component of the projections for manufacturing reported in this news brief.  If the U.S. can not maintain or expand its wide productivity advantage vs. China the the projections quoted are likely to be modified to the detriment of U.S. manufacturing.

The BCG study says that Chinese manufacturing wage costs seem likely to rise 17 per cent a year in the next five years, compared with only 3 per cent a year in the US. Read more at econintersect.com

 

Oil Spike Good 4 Local Farmers #peakoil

Yes! Down with Corporate farming! Soon we will only be able to buy local in season items. The challenge will be for people who live in areas where local food is not an option.

Clipped from www.businessinsider.com

If the price of oil continues to stay high, we are going to see much higher food prices and some forms of food production will no longer make economic sense at all

Image: kylewith via Flickr The price of oil may be the biggest factor on this list.  The way that we produce our food is very heavily dependent on oil. The way that we transport our food is very heavily dependent on oil.  When you have skyrocketing oil prices, our entire food production system becomes much more expensive. Source: NPR Read more at www.businessinsider.com

 

US Gas Artificial & Dependant on Oil

Remove this tariff and start importing more sugarcane based ethanol!!

Clipped from en.wikipedia.org

Brazil's sugar cane-based industry is more efficient than the U.S. corn-based industry. Sugar cane ethanol has an energy balance seven times greater than ethanol produced from corn.[3] Brazilian distillers are able to produce ethanol for 22 cents per liter, compared with the 30 cents per liter for corn-based ethanol.[118] U.S. corn-derived ethanol costs 30% more because the corn starch must first be converted to sugar before being distilled into alcohol.[78] Despite this cost differential in production, the U.S. does not import more Brazilian ethanol because of U.S. trade barriers corresponding to a tariff of 54-cent per gallon, first imposed in 1980, but kept to offset the 45-cent per gallon blender's federal tax credit that is applied to ethanol no matter its country of origin.[5][90][91][92]

Alcohol and gasoline prices per liter at Rio de Janeiro (left) and São Paulo (right), corresponding to a price ratio of E100 ethanol to E25 gasoline of 0.64 and 0.56.

Ethanol fuel in Brazil

Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 89% of the world's production in 2009.[1][2] In 2009 Brazil produced 24.9 billion litres (6.57 billion U.S. liquid gallons), representing 37.7% of the world's total ethanol used as fuel.[1] Read more at en.wikipedia.org