Wednesday, June 11, 2008

Oil In The Brain, Pie In The Sky

Looks like some people have so many dollars that it's burning a hole in their pockets. Dubai is planning to build the world's largest airport: big enough to handle 120 million passengers per year, its size will roughly equal Chicago's O'Hare and London's Heathrow put together. Putting it another way, that's 19,200 football fields. And they're planning to do it fast - it's supposed to open in 2009.

For comparison, the world's three busiest airports in 2007 were Atlanta with 90 million passengers, O'Hare with 76 million and Heathrow with 68 million. Dubai came in at number 27 with 34 million.

Question: why will 120 million people be going or passing through Dubai (pop. 1.4 million) any time soon?

Hmmm... someone(s) is getting mighty cocky down there (a.k.a. oil = $135/bbl). They better check out the meaning of the word "hubris".

18 comments:

  1. Oil keeps going up like this and there won't be a 120 million people who can afford to fly there. :)

    ReplyDelete
  2. Safe haven for the Cheney administration after the fall.

    ReplyDelete
  3. Yes, they should have built a few solar desal plants.

    I was reading an old Smithsonian article (1974) this morning about energy. King Hubbert was still alive, and the article's author, Wilson Clark, noted Hubbert's call of a 1970 peak in US production. Clark further posited that we may in fact be headed towards a "steady state" economy, because the price of imported oil at that time had recently increased fourfold.

    Well, world reserves were nowhere near peak in 1974, and what happened since then is now historical record. However, Mr. Clark's accurate if somewhat naive article did illuminate the word hubris for me quite well.

    Now that world conventional oil production has in fact most likely peaked, I think we're about to be schooled in just what the heck constitutes money. Something tells me it isn't paper, and damn sure isn't hubris.

    ReplyDelete
  4. Sounds like Malaysia circa 1997.

    ReplyDelete
  5. Disney in Dubai? http://wirednewyork.com/forum/
    showthread.php?t=6271

    why not, and subsidize flying the families in. 2010 Dubai, America's new family destination.

    ReplyDelete
  6. Gazprom predicts oil will reach $250
    http://www.ft.com/cms/s/0/23928598-36c1-11dd-bc1c-0000779fd2ac.html?nclick_check=1

    The striking prediction came as the International Energy Agency, the developed world’s energy watchdog, warned that record high prices were needed to choke off demand in order to balance the oil market.

    It is the IEA’s most candid admission to date that oil supply is struggling to catch up with Asian demand, and follows the sharp rise in prices last week, which saw crude jump more than $16.24 in less than 36 hours to a record $139.12.

    Gazprom’s prediction came at a strategy presentation in Deauville, where Alexei Miller, chief executive, said: “Today we are witnessing a very great change for hydrocarbons. The level is very high and we think it [the price of oil] will reach $250 a barrel.” A company spokesman specified that Gazprom believed that level would be hit in 2009.

    ReplyDelete
  7. If they are wasting the money like that, something tells me they are not being ALLOWED TO BUY GOLD.

    mm

    ReplyDelete
  8. If they are wasting the money like that, something tells me they are not being ALLOWED TO BUY GOLD.

    mm

    ReplyDelete
  9. No,

    We have Hubris. Dubai has oil.

    Dubai/Emirates will be the world's airline. They can pump oil at a couple of bucks a barrel to fuel their planes. US airlines have to pay about $140 per barrel.

    Now who has hubris. Wait til the US airports have a couple of hundred thousand per year passing through them instead of millions.

    ReplyDelete
  10. Is there a way to short Dubai?

    ReplyDelete
  11. After the fall, like Marcus points out, Dubai will be safe haven not only for the Cheney administration but for ALL the world leaders and the rich. They won't want to lounge in New York high rises because New York and the rest of the US will be dirty and dirt poor. Welcome to a global economy where the ones with power and money call the shots...and democracy is a thing of the past.

    ReplyDelete
  12. I think they want to make sure that if the shit hits the fan they can evacuate their population quickly to someplace safe.
    The Falklands?

    ReplyDelete
  13. Dubai sees itself as a mega-center for finance, trading floors, tourism, etc, given its position near the cross-roads of European and South Asian travel, and potential traffic from the Far east & Pac-Rim. It's not about its own paltry oil reserves or the just the oil wealth of its Middle-East neighbors.

    ReplyDelete
  14. I plan on setting up the world government to rule in Dubai and rule all you retards.

    I'll keep you killing each other over religious wars while I fund both sides and indebt my slaves.

    ReplyDelete
  15. I am reading an interesting book on oil: "la face cachée du pétrole" by éric laurent (I don't know if it's translated in english, I couldn't find it on amazon).

    It's really enlightning regarding the political links in the oil industry, and I'm just on page 200...

    ReplyDelete
  16. My too short course in economics impressed upon me the basic fact that money is a symbolic system where a currency note is an admission of debt. Like any symbolic system where debt is involved, trust, and legitimacy are the bases on which the fragile edifice rests.
    Undermine trust and legitimacy, and the whole system crumbles, just like the tower of Babel crumbled, remember ?
    Between hubris and Babel, we have a pretty good idea where this little bubble will end, don't we ?

    ReplyDelete
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