Independent:
The world is heading for a catastrophic energy crunch that could cripple a global economic recovery because most of the major oil fields in the world have passed their peak production, a leading energy economist has warned.
When it comes to matters oil and energy, the globby hand of oil influence seems to smear all in the industry, even the otherwise-esteemed International Energy Agency (IEA).
Michael de Portu: The Economy: Cycling Along With the Training Wheels On
Some observers ask whether we are in 1929 or 1932. The good news is that the world is so different today, we are probably in neither. The globe has 6 billion inhabitants with that much more potential for instability.
Garrett Johnson: What Will an Economic Recovery Build Upon?
The economy: Has it bottomed? Are we recovering? Will we see a "V" shaped bounce? Or a "U"? Or a "W"? Let's examine exactly what is going to lead this economy out of our deep recession.
Andy Wilson: Big Oil Astroturf Rally in Houston More Company Picnic Than Grassroots Campaign
Yesterday the Public Citizen Texas team drove down to Houston to crash the American Petroleum Institute's Energy Citizen event. Billed as a "grassroots" rally against the cap-and-trade bill currently before Congress, this event was nothing more than a company picnic.
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Peak oil is a myth. Don't fall for this scare tactic. There's more oil then we could ever consume. We have not even scratched the surface on the abundant supply of oil under us and I don't need to go out of my way to research links for the lazy. Do your own research.
Yes, there is more oil you are correct, but the recovery costs for the oil that is under the ground right now in some cases matches or exceeds the cost of a barrel of oil (remember $30 a few months back?) plus the oil that is there is not so much the light sweet crude that is easily refined at little cost, but is the heavier, more sour crude which requires far more refiining. Plus we have not built any new refineries since the late 70's so we are not exactly up to standard there (remember how long it's taken to get clean diesel to the US?) We just don't have the infrastructure, most of our rigs are rusting, and the volatility of a price of a barrel of oil just puts a damper on domestic smaller companies here at home trying to explore or rework wells for domestic oil production.What bank is going to loan money on a $30 per barrel scenario? Plus this crazy cap and trade bill is stupid-it's is going to further stifle the local oil and gas industry in US and force our country to purchase cheaper oil from places like saudi and nigeria, etc.
The issue, for advanced biofuel, is whether the proper development of an advanced biofuel industry in the United States is even feasible when: (a) independent ethanol producers in the U.S. are at the mercy of volatile commodities markets for feedstock; and (b) the price of ethanol is controlled by the oil companies.
Read "Independent U.S. Ethanol Producers Will Not Survive as Price Takers" on the following page: http://renergieadvancedbiofuel.blogspot.com/
Why don't we drill for our own oil....Alaska....off-shore....Montana.
"Stupidly" we don't even use our own God-given natural resources.
We only have at best 3% of the world's oil reserves and we use 25% of the world's oil production.
We could drill everybody's back yard, including yours and mine and not put much of a dent in it.
The bigger picture is that we can't produce enough oil to fuel the world at the rate the United States guzzles it, which means that the have-nots will always be the have-nots unless an alternative, renewable source is ultimately tapped aka solar power.
It doesn't matter whether peak oil was five years ago, five years from now or even fifty years from now. There simply is not enough to go around.
Do we want to live on a planet where most of the people are condemned to live at levels far below the current western standard? Because if we do, we might find it hard to hold on to our style of living when everyone else wants it too. I don't think China and India are going to sit around forever letting us hog everything for ourselves.
Current world production of oil is 85 million barrels a day. We use 21 million barrels of it. Project that out on a global scale and we'd have to produce 400 million barrels a day for everyone to live like us - and we don't even have health care for all.
We need alternative energy. And we need a lot of it.
hahaha.... This sounds so familiar, awe yes, I think it was the Carter Administration that claimed all of this junk, and now it sounds fashionable again so let's go on another energy revolution. What I find ironic is that the price of energy has changed very little and when it government price controls have left, it goes DOWN. Now if supply is down, why would the price not increase? Oil companies would have every incentive to increase the price per unit, if this were the case. Oddly enough, even the big bad oil boys haven't done it, and maybe that's because they would have any EVIDENCE on their side.
The price of oil has changed very little? What government price controls? What are you talking about?
This is a good reference:
"In 1979, for example, the United States fixed the price of gasoline at about $1.00 per gallon. If the market price had been $1.20, a driver who bought ten gallons would apparently have saved $.20 per gallon, or $2.00. But if the driver had to wait in line for thirty minutes to buy gasoline, and if her time was worth $8.00 per hour, the real cost to her was $10.00 for the gas and $4.00 for the time, an overall cost of $1.40 per gallon. Some gasoline, of course, was held for friends, longtime customers, the politically well connected, and those who were willing to pay a little cash on the side."
see: http://www.econlib.org/library/Enc/PriceControls.html
See: http://www.econlib.org/library/Enc/PriceControls.html
The 5th paragraph details the difficulties of price controls and how gas was a part of it.
I'm talking about those put into place in 1979 and 1973... ever heard of people waiting in line to get gas? ya, that was when Carter et al. got serious about price controls and yet when they were removed under Reagan, the price dropped and there was a more honest assessment of current reserves.
This is not news. Anyone who has been paying attention knows that we have bled about half of the worlds oil out less than 150 years. The remaining half will be drained much more quickly. And expensively. And in countries that don't really like westerners taking their resources.
Peak Oil. If you want to see a really good documentary about it, watch "A Crude Awakening". Anyone planning for the future should pay attention to it.
GEEEEE.....i wondered how long it would take for the oil co.s to start fear mongering after the SEC started talking about getting the oil speculators out of the market.
but i don't care......this time i am ready for oil to go to $200.barrel.
bring it on.
We are running out of oil on this planet sufficient to sustain energy for all major cities world wide. Fact. Not a contested political football but scientific fact. Are the oil companies using this to their advantage ? yes. Does that make them liars ? no. No science contests the extinction of oil.
You see to get oil you have to pay the costs. The costs for getting the oil is approaching the "not enough" profit for the cost and energy.
If you think your life is painful because you pay $3 for gas at the pump brace for a shock and awe when the oil runs out further. You will be compelled by the government to only drive your gas driven cars on certain days. The cost will sky rocket to $7- 10 gallon and stay there. It's coming folks.
The stock market will crash if we lose control of the oil market. We will be compelled to go to a "New World Order". It's all by design because most people are cattle.
The Republicans will say "Oh Goodie! Let's hope this happens on Obama's watch! It'll all look like his fault!" This is what I'm afraid of. I'd like to think we could all get realistic and develop strong communities that barter and trade, grow their own food, look out for one-another. But what will likely happen will not be pleasant or pretty. However, I am learning how to grow food, dry/freeze/can my harvests, collect seed, make good compost, and best of all, learn to live with less. I see that many other Americans are doing the same so that gives me some hope.
Left you a response to your question on Greg Mitchell's blog,
from yesterday. Curious about your response.
Oil is a finite resource and we will eventually consume all of it. The time, pressure and other things that are needed to create oil, take a very long time. We are consuming it at a high rate, and not with India and China exponentially upping their demand, it is just a matter of time.
Actually, the most important required ingredient is a huge supply of freshly killed organic material. All of the oil ever created comes from two very brief periods in earth's history, both when huge die offs occurred.
Oil will indeed disappear. Sooner than we're prepared for.
In the meantime, it's the stated goal of the oil industry to pump as much out today as possible.
here we go again. ITs time to run the prices through the roof again.
There is nothing more suspicious than a "leading energy economist" suddenly telling us something true, particularly a truth that has been known since 1956. Oil is running out, of course, but it doesn't appear to be running out today. Demand is rising with economic growth, and the oil companies will be there to reduce supply so they can extort as much money as possible.
What can I say? "Thank God the US is getting oil out of Iraq and Afghanistan for us" ? Because let's be reasonable folks- that's what the wars are ABOUT.
"What's OUR oil doing under THEIR soil?" - Cute bumper sticker
The only thing that matters is: Will it last through MY lifetime?
What happens after I depart is irrelevant.
I GOT'S MINE! To those left behind, "Foxtrot Yankee".
(I am available for speaking engagements for any interested Petroleum Industry Corporations)
lol.. didn't get the caring gene eh?
Would the pension funds please hurry up and go long on oil futures so we can have the crash in prices and get back to $1.50/gal gas and GS can reap their trading profits.
BULLSH*T...
now that will produce results!
what? no more fossil fuel to burn? well there goes the global warming argument..
no rain.. no rainbow!
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First Posted: 08- 3-09 12:05 AM | Updated: 08- 3-09 12:10 AM