[sulayman]

I guess that this is hapenning everywhere. However, this is only the beginning...it is all downhilll from here on in.

http://news.bbc.co.uk/1/hi/business/3733790.stm

[gg3]

"And other raw materials," i.e. steel, which depend on oil, but will be seen as mutually isolated cases in themselves.

Here in the San Francisco area, the Bay Bridge reconstruction project has also gone out of sight, largely due to materials, steel and concrete, which in turn depend on oil. But the various branches of government are engaged in a mutual blame-game with the contractors, as if it's all purely arbitrary. I have to wonder how long before someone finally makes the connection.

[backstop]

I'm wondering how long it will take for the mostly-energy-price-driven inflation of construction material costs to filter through to the cost analyses of the various alternative energy options.

Due to that inflation, those options using minimal structure per unit of output would appear to be gaining still further credibility, while those such as mega-hydro and nuclear are declining.

Given that we're only at the start of such energy price increases, it seems to me that the long-lead-time high-build-inputs options can probably be written off at this stage, without marshalling the ranks of other arguments against them.

Or is this an overly cautious view ?

regards,

Backstop

[BorneoRagnarok]

Same inflationary events also occurs here. Every goods went up in price as a result of energy price driven inflation. Dole here blamed businessmen for increasing their price. They are promised with heavy punishment if price increase again. Any price increase need Dole's approval. (Do you US people think US Homeland Security is bad ? Hello , this is Malaysia. No First or Second Amendment like your hometown. )

Sooner or later honest traders with artificial low price will be bankrupted and only black market remained. Guess what ? The price will skyrocketing. Here in the street , a lot of disatisfaction with the Dole. The only thing that prevent a riot is a Homeland Security law that imprisoned any protester in jail for at most 2 years without trial.

Those who buy new house are required to pay 8 percent more than the original price because of increasing costs of construction materials. Home buyers are not happy of course. I can go on and on..

But the truth is material's price in fiat currency will go up as resource become scarce because of decreasing ability to extract it due to decreasing resource supply or increasing opportunity costs of energy price or both.

[Permanently_Baffled]

BBC

Now this is the way forward , British telecom, the main telecoms provider in the UK has commited to get all of there electricity from renewables. Encouraging !!

[Permanently_Baffled]

So in 2030 I will be starving to death but at least I can use my telephone and the internet

[JackBob]

So in 2030 I will be starving to death but at least I can use my telephone and the internet

But you won't have to starve. Just go on-line and order in a few pizzas and Reese P/B Cups.

JackBob

[Permanently_Baffled]

LOL Jackbob , my local ASDA keeps running out of them , I think I am going 'cold turkey'

Seems my local supermarket is experiencing 'peak cups'.

PB

[Cynus]

This is a pretty amazing development. If you next hear that the UK is to begin electifying all their diesel trains you'll know that they're taking PO seriously. They're following the advice from http://www.after-oil.co.uk/ nicely.

[Kingcoal]

Go England! We're working on it in this country (USA), but we have to get the regime change out of the way first (Bush.) I don't see anything remotely progressive or rational happening until we take our country back from the neocons.

[reggieUK]

petrol price war in UK link

[Kingcoal]

Distillate prices are dropping in the US also. Here in the Northeast of the US exists the worlds largest fuel oil market (for home heating) and the winter has been pleasantly mild so far. So far inventories are high.

[marek]

Weakening demand, a mild winter in the U.S., and the megaprojects coming on-line in 2005 will keep prices low compared to recent $55 highs. In this regard, I agree with Dale Allen Pfeiffer. Of course, this will be a sigh of relief for Wall Street and the West in general, which will further delay the public perception of the imminence of the problem.

[linlithgowoil]

Its strange - oil has never really went below the low 40's in price, and is now back up at about 47ish today and yet petrol where i am (Central Belt, Scotland near Edinburgh) is curently about 4-5 (sometimes more) pence a litre cheaper than it was when oil prices were just starting their run up to the high 40's a few months back.

i can get 1 litre for 76.9 pence now, and it was up to 84.9 pence in some garages about 3 weeks ago. i wonder, how can the price have dropped so much when oil prices havent really went below $40? also - when oil prices were in the mid 30's quite a while back, a litre of petrol was about 78 pence on average.

additionally, i should point out that petrol prices have historically NEVER went down significantly AT ALL in the UK. They have always gradually crept up, year upon year, no matter the oil price due to a constant increase in fuel duty and inflation. is this an indicator that we are reaching the point where oil based products start to experience wild fluctuations in price - with apparent moments of weakness in price followed by very high prices?

[No-Oil]

This is supply & demand in all its grotesque exposure. The price was very high mid year 2004, but your must note that the price today, is for delivery in approx 2months time. If you look at this 3month chart for Brent Crude from which much UK petrol is made, then the fall in November bottomed out in December around the 13th.

link

Thus the petrol you are using today, was made from crude bought in November (falling prices) & thus can expect low petrol prices for the next 6-8weeks when it will rise again & probably by more than the peak it reached a month ago. The price would not have fallen if the supermarkets had not got into a pre christmas price war on fuel. Sainsbury started it with a 5p off voucher with all store purchases over £30, then Morrisons dropped there price by around 4p & everyone else joined in.

Now whilst the price of oil for use in Nov/December 2004 was higher than this time last year, the supermarkets have cut the profit margin per litre to the bone. I suspect they are making no more than 1-2p per litre at todays prices, so it can't last for long !

Enjoy it while you can it will rise soon & probably keep following the 2 steps forward 1 step back as supply & demand fluctuate, but as the song goes "The only way is UP, baby".

Now with todays prices, you try telling Joe Soap that there IS a problem !

Chris W.

[bobbyald]

Petrol prices in the UK are dirt cheap at present.

At only $6.50 a gallon the government are giving it away - after all it the most valuable resource this planet has!

For only $26 I can drive from the very canter of the UK to the coast and back home again - wonderful.

What's more whenever oil prices double petrol only rises about 17% as it's nearly all tax. If oil were to go to $240 a barrel UK prices would only double - oh no $52 for a day at the coast now.

Sure people would moan. A few years back a couple cents on a gallon caused the truckers to protest almost bringing London to a halt but even this was because they were uncompetitive with continental truckers rather than the absolute price.

Lets face it many, many car journeys are just not necessary. In the UK something like 70% of car journeys are under 3 miles - can you believe it?
In the time it takes you to find your keys you could be there on a bike.

Comments welcome.

[No-Oil]

In the UK something like 70% of car journeys are under 3 miles - can you believe it?
In the time it takes you to find your keys you could be there on a bike.

Too true, but only if the bike is instantly available & some thieving scrote has not run off with it ! Hang, or rather shoot them, that;'s what I say.

Chris W.

[bobbyald]

Don't remind me.

I had mind nicked the other day.

Shooting is too good for them.

[bobbyald]

...and another thing - Why do you always get the position next to PeakOil Jane?

[reggieUK]

Does anyone have any idea why petrol prices in the UK are NOT increasing?
average prices are 81.9p a litre. They were at 85.9 when oil was $45 a barrel and it's been over $50 for weeks now and no increase in pump prices. How come?
Yes, I know we have an election coming but the gov has frozen any duty until September (very likely) but do the UK gov have some sway over oil companies pricing after all?
Here's a possible problem. If petrol were to reflect the current oil price then it would be something like 92/93p a litre which would send lorry drivers on strike again (and it would), closing down the UK again and all just before an election so Blair gets dumped - so this is a serious question.
anyone?
Thanks

Reg