Hope or Fear as we enter the Dark Night - the choice is yours

President Obama asked us to choose hope over fear but at least on the day of his inauguration, the market chose fear over hope. - Phil Flynn

Cheap oil does not bode well at all in the immediate future.

The inclusive world average cost for crude oil production is probably around $60 a barrel. Any prices significantly below this mean that industry is not running at a viable level, with attractive profits. At $35 per barrel many oil exporting nations are now running into deficits. Oil exploration, development and maintenance projects are either completely scrapped or put on hold. In addition, society is quickly forgetting about the oil crisis and goes back to high consumption, in a life style that is excessively energy hungry.

Low oil prices also present a major stumbling block for the development of new generation energy systems and technologies which are typically more expensive than conventional crude oil has traditionally been. Hence, a stalling of many alternative energy projects -by James Leigh

NVDL: Below are some current news headlines worth pondering.

clipped from www.theoildrum.com Mexican crude production down 9.2 percent in 2008 clipped from www.theoildrum.com De Beers May Cut Diamond Supply by 50% on U.S. Slump clipped from www.theoildrum.com Wall Street crisis snares Main St. schools The World in Depression: Lessons from the Great Depression: Part XXIV: Economic Crises Around the World in Synchronization. clipped from www.theoildrum.com Michael Economides says oil is going back to $100 and very soon. Oil Price Over $100, in a Blink He says the average cost of new oil is $70, therefore without oil above that price there will not be enough investment in the oil patch to keep production up. clipped from www.theoildrum.com Sun 'could supply Gulf's day-time energy needs' Top 100 Stories of 2008 #1: The Post-Oil Era Begins Little cars get big electric boost Clock is ticking for GM and Chrysler Police departments look for more fuel-cutting cars Chevron reconsidering Indonesian deepwater venture Crime, not politics, drives Nigeria oil delta unrest Oil tanker attacked off Nigeria Cheap oil: a poisoned gift Era of cheap oil is over The Audacity of Hope, I hope. GM loses sales title to Toyota