The Oil Drum

one way heat pipes? finned heat sinks? some sort of captured ammonia system? we're talking half a million/ footing here easy.

You're talking more like a hundred bucks a footing, or a small multiple thereof.

Because no one knows, its best to diversify ones assets to have the largest % chance of having the largest impact with lowest risk. I have 5% of my assets in gold and silver coins, bullets and guns, and freeze dried food. Maybe its too much - maybe not enough-but lets me sleep at night. Some of my former wall street clients have over 100 million dollars in a broad array of investment accounts all over the planet - but they have ZERO real assets - many of them own gold, but only in the futures market or through some commodity trust - this is an example of diversification in one system, where owning hard assets and other investments is diversification BETWEEN systems.

Silver one ounce coins or bars will probably be best, as they can buy small things and are easily recognized. The things that give people immediate dopamine will also be in high demand - coffee, sugar, cocoa, alcohol, marijuana, opium, tobacco, etc.

And I must add that my biggest asset is the flexibility and health of my brain - it continually allows me to adjust to new information and plan accordingly - anyone who is wed to one pre-ordained view of how this will pan out is probably being too dogmatic. Other than things will probably be less pleasant and easy as they currently are.

Investment wise, this was a "peak oil" day in the markets - Gold up $18, Silver up .50c, oil and gas to new highs, stocks mkt selloff, us dollar down almost 2 euros, etc.  I continue to think that the major impact of peak oil will be a financial one - Im already talking to average people that are changing plans for summer and cutting back because gas is so high. I am short alot of stocks, like RTH - the retail stock ETF. I dont know how the economy will withstand the new credit card rules, softening of real estate mkt and higher gas prices.

Tangentially, wealth is A/D ==> assets over desires. one can increase wealth by increasing assets or decreasing desires or both. Most 'desires' come from evolutionary impulses for novelty and relative fitness. In essence, we like things that are novel and new because our ancestors that found extra food and new things tended to outproduce and have more resources for their offspring. Today, when the energy leverage of the planet is so high, our universe of 'expected rewards' is nearly infinite. If we have 2 houses, we think we need 3. If we have too much missionary style sex, we need doggie style - if we eat too much mac and cheese, we crave sushi. In a world of declining energy resources, the 'novelty availability' grabbag will be much smaller. Those who recognize this, and understand neuroscience a bit should be able to reduce the disparity between expected and unexpected reward and be happier with simpler things, that can be had with or without oil.

In sum, diverisfication exists in traditional markets, in hard assets, as well as in the neural framework of what makes us happy and satisfied as humans.

Eventually, yeah it probably will get that bad.  Hopefully not in the next 5 years as I'm totally unprepared for the Mad Max phase of the collapse of America. The 1970s oil shock phase I'd likely beneift from, I could get creative and get though a 1930s depression phase, but beyond that at this point my ass is toast given my current skill set and geographic location.

But having both an emergency fund and a catastrophe fund assuages my anxiety a bit. And the catastrophe fund has appreciated quite a bit which if I wanted to I could liquidate and use however I see fit.

Best,

Matt

You should seriously look into how they hold assets. It's not as if they are simply buying and stockpiling physical crude.