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August 03, 2007

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De Onion

Most of our fuel cost is shipping/tax. We can take a much larger increase in fuel price than virtually anywhere else in the world without a material impact in our standard of living. Not to mention that we have ample wind, solar, and tidal power that will become economically viable at very high fuel prices.

In short - Bermuda will likely be in a much better position to deal with rising fuel prices than the rest of the world.

Denis Pitcher

Do you wait until the storm is already here before deciding to buy a rainsuit?

silencedogood

If this isn't a situation dripping with irony, I don't know what is.

De Onion

Ooops... wrong post.

Anyway - re: Peak Oil - it's about #95 on the list of things that could cause material declines in standards of living on this island. In the event of a long-term secular economic decline caused by high energy costs Bermuda will be among the least affected. In addition, the time horizons are long enough that the discounted values are pretty tiny.

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Random musings on politics, finance and life on the 21 square mile string of islands often referred to as Bermuda, by Denis Pitcher.

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