Bitcoin Forum

Oil prices are through the roof!! The supply of energy has been drastically cut leaving demand exponentially high. Energy demands of any country,when not being met definitely results in inflation and a sharp decline in the standard of living.
Energy the life force of a nation affects every aspect of the workings and growth of the nation and when scarce increases the cost of manufacturing, producing, nothing is spared.
Developed countries are feeling its impact while developing countries are probably going through some really hard time now.

Seriously the effect of oil increase is reaching every country. There is need for diversification of energy and oil especially the dependence on oil. Oil producing countries are planning to increase supply but then it won't have much positive effect on their economy because it works like chain. When output of Oil increases, the proceed is also used to import what is needed for the country with the effect of the oil increase. Sometimes I wonder if the world is dependent on oil. Among every natural resources, increase in price of oil causes adverse effect on economies.

Developing Countries will thrive a little in this times, not to go too far, Nigeria for example had DStv increasing it's price of subscription for a month already, this should be due to lack of enough energy for electricity and increase in price for gas.
Also got to pay double of what I do pay for transportation today.

Developed countries will now have to pay in rubble's so as to get gas, I don't know how true this is though, but my mate told me lately.
Russia are chiefly heading the supplies of energy and gas, bit since the supplies are reduced the price has to go upwards.

This cannot be more loudly said, the current energy situation around the world is an eye opener that our over dependence on oil for energy is beginning to fail us woefully. It is up to both the developing and developed countries of the world  to begin to seek energy alternatives in other renewable sources and most importantly independent sources. Independent alternatives in the sense that every country begin to harness the available renewable energy available to them. If this has been the case, oil scarcity driving inflation would not have be very exponential. The effects would have been minimal.

There is no doubt the world has an energy crisis.

How do we address it. Can alternatives be found. Is it worth investing in energy sectors who will be tapped to fill the power vacuum. While there definitely are negatives, there may be positives as well. Good opportunities for energy based start ups. New inventions and ideas in that area.

In woodland and rural areas, I'm wondering if wood gas (biogas) might make a comeback as it did during World War II fuel shortages.

I can't claim to have much experience with steam engines, they could be alternative energy solution with the best longevity due to many having lifespans of 50 to 100 years and needing only a fuel source and water.

Could solar cookers become an emerging trend?

There are so many inventions and ideas out there for possible replacements for crude oil. With markets being driven by necessity and demand, I wonder if we'll see inventors begin to focus on these areas to make breakthroughs in energy sectors.

I think each country should be independent of its energy needs. Our dependence on Russia for energy is telling heavily on us now and it's all cause of the sanctions. Now imagine if there wasn't any war and no sanctions but Russia withholds supply to certain countries thereby crippling it just cause it could.

Yes for every $10 increase in crude oil the inflation figure goes up by around 0.2% or 0.25% or so. And it’s not only because people spend more on gas but it’s because everything is delivered using oil pretty much.

So your Amazon orders, your Uber orders, your groceries all that will be affected in some way or another. Now we got this mess that Russia started and it’s only making matters worse. First covid, and now this. I wouldn’t be surprised if a recession starts this summer or fall.

Every thing on the increase, transportation has been doubled,gas and food.

It's been known that oil is the catalyst for a country's economy. Go back on the times where oil is too cheap and everything is cheap as well. And whenever oil's price increases, all of the goods and services price are also increasing.
Almost everything is dependent on oil's price so if it goes up, everything goes up as well. This week, after a decrease in price, there's another increase that awaits.

Oil is really vital in relation to the economy especially with its limited resources,
It's true, like it or not, when the price of oil rises, others will have an impact,
I hope prices can stabilize again and to make that happen I don't think it's an easy thing and it takes time too

What is also clear to me is that it is a crisis caused by political decisions, it is not something that came about like a hurricane.

Whether the political decision is justified or not, based on ecological issues, I will leave for another debate.

If we look at Europe, the demonization of fossil fuels and nuclear energy (the latter except in France), led to an increase in prices before the war and with the dependence on "ecological" Russian gas now with the war even more.

In the USA, we have a country that was energy independent not so long ago, a net exporter, and that by political decision now prefers to go begging dictatorships around the globe to produce more to lower prices.

If you get on a chair, hang a rope from the ceiling, put it around your neck, and kick the chair, don't be surprised if you suffocate.

We've been dependant on oil and natural gas for energy far too long when they have always been other cleaner  ways to get energy. Having  used oil for decades,  we have become somewhat comfortable and conveniently forgotten other cleaner avenues to generate energy.
Solar energy, a great and clean source of energy has been ignored far too long. Solared powerd and run cars would be better and cheaper to run than petrol and diesel cars.
We need investors in these projects to awaken and remind us of its numerous potentials.
The current energy crisis has made us realise our apparent dependence on a supply hasn't been wise. Hopefully it would remind us of other avenues of generating energy as well.

I think we have to come to be dependant on oil for energy. Having used it for decades, it had become familiar and we became less and less motivated to diversify on our energy sources. 
We obviously didn't learn anything over the years about being over dependant on oil cause we had been dependant on a supply also. Now that supply has been cut, demand can't be met and inflation slowly then creeps in

Oil is pretty much used in almost everything, from manufacturing to producing to transportation. Supply cut has demand skyrocketing.  With no apparent supply to satisfy demand,  prices would soar
We would very likely slip into recession with the energy crisis not looking on getting any better soon

OP, did you the fertilizer market surge? I believe high food prices, and markets related to agricuture and food production will be the next driving force for inflation in many countries.How should be prepare for it from an investment standpoint? Invest in agri-stocks/food production companies.

OP may be looking at the cost of energy when it is not there and sourced through other means or through distance like EU is facing in their economy because of the cut off of supply from Russia that is facing sanctions. In the aspect that I want to look it through on how it can cause inflation is that when you use high cost to get energy for manufacturing of goods the price of the goods can rise and making the money to purchase it higher than it was before, that will make the value of the fiat to reduce.

I saw a post somewhere that some rich countries already did it, they have bought massive agri farms out of their profits from selling their own crude oil. It was a brilliant idea, now they cannot solely rely on their oil as it will drain sooner or later. So the alternative is needed, in order for them to survive they have bought lands across the country to grow foods that their own lands cannot. I am speaking about Saudi Arabia, look at their 3km disc like farms, it is an innovation and it was lit.

 I was planning from the start to buy farm lands, I wanna grow my own food too, releasing myself from the shackles of this society. The system wants us to follow it like robots, we die, somebody takes our position and I won't be waiting that to happen and do nothing. We need to think an alternative to break the chain, even if inflation hits us hard, knowing we have food in our backyard won't do us any damage. We might be needing the energy for transport, then if things gets harder, we'll just have to go back on using the old ways huh.

Yes, the prices are high. But it's also a good thing. They're supposed to become higher, to be honest, to demotivate people from using things that kill our planet. The current events are just speeding up this process. In his yesterday's speech in Poland, Biden said the US will help Europe meet its gas and oil needs, and I want to remind you that the US already said no to Russian gas and oil. Then he said that the US will help for the time being, but they all should move away from oil and gas as fast as possible because of climate change. And yes, inflation will rise, and people will be able to afford a bit less than before for the same money (in fiat, that is, not Bitcoin, by the way), but it's worth it for democracy (political side) and for our planet (ecological side).

https://i.ibb.co/SXt7X2W/image.png
Based on https://tradingeconomics.com/commodity/crude-oil, the spike in oil prices is indeed a concern to be anticipated. All countries now have a heavy burden to raise prices in the market. Meanwhile, the level of scarcity that has been piled up due to war and sanctions has put a little pressure on every country, especially Europe and the US, which are currently looking for a solution. The ideas and ideas that are emerging as a substitute for crude oil still do not completely replace the 100% role that these alternatives can cover the needs that are consumed by every oil factory.

I totally agree with you on the need to stop harming the environment with our toxic pollutions. It's not a good thing though for prices to go up cause it's the ordinary person that feels the pinch the hardest. Rich corporations that plays with wealthy management staff that would play major roles in polluting the earth wouldn't feel a thing. Prices would go up and they wouldn't even know it cause they're busy making more money.
The US would help in supplying gas and oil to Europe for the time being  and no to Russia oil. I think with Russia gone, Europe would slowly without realizing it begin to depend on the US for energy but it's  for the time being of course

I think there is a sense in what you have said here that gradually the EU countries will start to depend on US for supply of gas but I don't know how large is the US gas reserve to supply the whole of EU because the EU region actually need a lot of gas during the time of cold to be able to heat up their homes. But surely the EU can't go on living that way with shortage of gas and oil, they have to fall to alternative supplier.

That would be the most worth it purchase from anyone's Bitcoin investment in my opinion. A good farm land located beside a neighboring farm land with an owner who is like-minded as you. That would be the perfect location. I also believe that purchasing and owning guns to protect your land, family, and yourself as a requirment to be a sovereign individual. Land, Guns, and Bitcoin. 8)

The scarcity of oil and gas is artificially created by the political situation in Europe.
There's no actual shortage of oil and gas.It's just the political situation in Europe,that is creating uncertainty on the gas markets.The European countries are dependent on Russian gas for their electricity production(many power plants in Germany are using natural gas).When the gas prices went up,the electricity prices also went up,so the goods produced with expensive electricity also became more expensive.
American gas is more expensive than Russian gas and the USA cannot export enough quantity to Europe,in order to fully replace the Russian gas.
This inflation would have existed even without the energy prices going up.The money printing machines of the Federal Reserve and the European central bank created the conditions for high inflation levels years ago.

But there is actual shortage because of the actual sanctions that caused the supply constraints. The solution is simple, lift sanctions against Russia, but against the West's ethos. The other solution is more expensive, drill oil/shale themselves, and might also against their current ethos. The last solution, green energy, is the most expensive and very impractical. Plus all solutions will each be a "driving force" for inflation.

We need to diversify in order to survive and thrive. Our dependence on oil was a big mistake. Now, we're having an energy. Food scarcity isn't far behind as major suppliers of some products have decided to keep enough for local consumption.
It's nice to want to get a piece of land and to grow your food on it.
I've also had that idea in mind but more of a business angle. I've always wanted to have a large farm with various sections. I'll plant some cash crops and delve into animal husbandry. I would have a large poultry also. That way, I'll be self sufficient and make money. A win win for me.
Still fairly new to btc and have made some poor ignorant choices that cost me. Now I'm learning all I can and verifying the information to make better and intelligent choices. I know btc works so I just have to be patient and learn more to understand better.