Triple digit oil prices are with us for coming close to 3 months since early july compared to the shorter duration of tripe-digit price peaks floating above US$100 in 2011 & 2012. Already within this period of US$100+/barrel oil, we have:
- 3 Sept Malaysia cuts subsidies on fuel
- 11 Sept Malaysia set to spend US$50b to develop rail network with spiralling fuel costs
- 23 Sept Sheng Siong's distribution centre to house largest single solar panel installation
- 25 Sept HDB plans to go big on solar energy, calls largest solar-leasing tender
With these developments in reaction to high oil prices, the future for S'pore's hybrid regime is grim. No matter how many solar panels to harness free sunlight are installed in this tiny island, there's no stopping higher food prices in the future. Ships, trucks & planes transporting food don't run on solar panels(lacks energy density of fossil fuels).
Peasants are already getting squeezed in their paychecks with depressed salaries & displaced by cheaper foreign workers. Their building of 10 more hawker centres won't be able to save their ass. Higher food prices = bye bye to hybrid regime via the polls.
The hybrid regime talk of Terminals 4 & 5 for the airport. I see terminal 5 as too far-fetched. High fuel prices & higher food prices = less $$ to travel = collapse in medium-to-long distance tourism worldwide.
Shale Boom in America Can't Stop Global Rising Appetite
Although America now has a boom in shale gas & oil, expect prices to be in uptrend with voracious users like India, China & other developing countries. I consider the price of oil to be more important than the S&P500 index as high oil prices have always triggered recessions.
China's String of Pearls
Oil is the lifeblood of economies. Without oil, the ships & planes won't be moving. Economies will collapse. It is so vital that China has setup backup facilities known as China's String of Pearls in case of a supply route blockade at the narrow Straits of Malacca chokepoint & S'pore.