I have refrained from posting for a
while as I wanted the dust to settle on a few things. It is readily apparent
that the Saudi’s do not have a great deal of reserve capacity to make a dent in
prices. The wild card out there is the possible conflict between Israel and Iran which appears imminent this
fall. In where the markets go from here anyone knows, but it seems for now they
are holding steady.
One condition another friend who is an electrical engineer has pointed out for years are the lack of power transport and transmission systems in the United States. John McCain proposed creating 100 new nuclear power plants in the United States. The trouble is “The Grid” in post areas can not handle more power without upgrading lines, substations, and transformers through the system. One classic example is the Flex alerts in California as the grid reaches capacity in the summer heat (EBB Times). Another more radical example is the BPA system in Oregon received more power than it could handle in an event where its alternative energy providers allowed too much power to the grid (KTVB).
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