Friday, April 30, 2010

Don't drill, baby

It may be compared to the Titanic disaster. Deepwater Horizon, a state of the art DP semi-sub Rig, belonging to Transocean and charterered to BP exploration, went into flames during the last phase of drilling a well located 50 miles off the southeast coast of Louisiana. It sank two days later.

The rig had distinction of having drilled the deepest oil and gas well ever with a vertical depth of 10,680 m, of which 1,259 m was water.

But now, there is bigger tragedy in making as abt 5000 bbls of crude is gushing out of the well head each day and heading towards gulf coast. At that rate, the spill could eclipse the worst ever oil spill in U.S. history , the grounding of tanker Exxon Valdez, as it may take upto 3 months to cap the well.

With this, Obama's dream to see drilling rigs scattered along the U.S. coast horizon gets a rude awakening. Certainly a bad luck for offshore industry as whole. But as always, someone's loss is someone's gain. Alternate energy cry gets louder then ever. Wind, sun, shale and corn are bound to get more attention.

Friday, April 09, 2010

Quoth the raven, "Nevermore."

Did you hear, oil's going to perish? Some believe, since the world economy is getting back on tracks, era of contango in oil prices is coming to an end. Eighteen months of slack in oil demand is being fast picked up by the flying economy, which will make the present dearer than the future, ushering an era of backwordation in fuel prices. Hmmm... Sounds logical.

Dr. Ben and team have yet to taper off the doses to sick (not ailing) economy. Gold is still smiling and shining bright and current trends in markets are clear reflection of uncertainty in direction coupled with underlying weakness of money. A perfect situation for speculators to take the world for a rollercoaster ride.

There is demand, information, technology, liquidity and infrastructure for economy to take off to space. But that is the very core of our problem today. Mis/information coupled with greed drops entropy of the system, thereby making the whole system unstable. The 'bubble and bust (leap and fall) motion' will be the order of economics until a way is found to counter greed by carefully synthesising realtime quantitative informonica, which will take into account the nature, available natural resources and redundant human resources.

Bottom: Go Top