free html hit counter Peak Oil Debunked: 218. PROF. HAMILTON SKEWERS IRAN OIL BOURSE HYPE

Saturday, January 21, 2006

218. PROF. HAMILTON SKEWERS IRAN OIL BOURSE HYPE

"Petrodollar hegemony" is a perennial source of hype in the peak oil community. Briefly, the idea is that oil purchases in the world today are denominated in dollars, and any move to sell oil in other currencies would cause the collapse of the U.S. economy. This is often cited as the "real" reason why the U.S. invaded Iraq (Saddam Hussein had begun to sell Iraqi oil for euros), and the reason why the U.S. will be forced to attack Iran before they open their oil bourse, which is scheduled to begin selling oil in euros this spring.

Econbrowser is an economics site written by James D. Hamilton (Professor of Economics at the University of California, San Diego) and Menzie Chinn (Professor of Public Affairs and Economics at the University of Wisconsin, Madison). Econbrowser has a number of interesting, contrarian posts on the subject of peak. Prof. Hamilton's most recent post debunks this "petrodollar" hype:
The internet can be a good source of information about issues that aren't adequately covered by the mainstream media. It can also be a font of considerable kookiness...
I'll refer you to the article for details.
-- by JD

7 Comments:

At Sunday, January 22, 2006 at 2:43:00 AM PST, Blogger Omnitir said...

Nice find.
I love this sentence from the article – so true: Which is also my explanation for the prevalence of these theories on the internet-- there is a demand for a deeply conspiratorial interpretation of world events, and always someone willing to supply such..

 
At Sunday, January 22, 2006 at 8:00:00 AM PST, Blogger al fin said...

If someone is seeking doom, they will find it, whatever is actually there.

There is no difference between the "town gossip" and the "web conspirator." Their motives are the same and their level of intelligence is the same.

 
At Monday, January 23, 2006 at 1:22:00 AM PST, Blogger Roland said...

That really makes sense, although I'm still not sure about one thing: even if you convert your dollars into Euros as soon as you get them, doesn't it still drive up the demand for dollars temporarily? Still, Professor Hamilton's seems more sensible than all those conspiracy theories.

By the way, Omnitir, when will we see space industrialization pt 2? I really liked your last post.

 
At Monday, January 23, 2006 at 11:47:00 PM PST, Blogger Omnitir said...

Thanks Roland :)
Very soon..

 
At Sunday, January 29, 2006 at 1:28:00 AM PST, Blogger Oilguy1 said...

What I have found over the years is that those in the academic world ARE far from reality.

I am a petroleum consultant and have been modeling and analizing oil/gas fields for over 18 yrs. Friends, those fields are going toward empty.

Have I heard about any great EURIKA events in my industry. NOOOOOO. Have I heard about giant oil fields being discovered. NOOOOOOO

OK, the professor may have other sources that are better than mine but I amon the ground in the FIELD. He is sitting in his Ivory Tower. Your choice who is .....

Regards

 
At Tuesday, January 31, 2006 at 9:44:00 AM PST, Blogger Override367 said...

Oilguy1 can we get some credentials? Specifically who do you work for and what fields are you involved with "on the ground".

If you work for an American oil company I would expect you to get that news - their reserves are all falling on their faces, but they don't have access to the vast majority of the world's remaining oil.

 
At Saturday, May 6, 2006 at 10:21:00 PM PDT, Blogger Tom said...

In economic terms, an Iranian Oil Bourse represents a much greater threat to the U.S. than an Iranian nuclear first strike!

 

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