Up, Up, and Away
Oil hit another record price today on the futures market. Don't let anyone tell you it is because of trouble in Russia (Yukos), or Iraq, or Venezuela. Oil is produced all over the globe and there will never be a time when all of the producing/exporting countries will be stable. We are only concerned about those instabilities now because demand is starting to overtake the available supply.
If you are interested in my credentials on this subject, I address them here.
The Guardian has some comments on the underlying causes of the price of oil today also.
OK, so why do I keep writing about this stuff. Because it really is the gravest and greatest threat to mankind out there. Forget global warming. Forget Dumbya and his band of Merry Neocons. This shit is real and it's consequences are potentially really bad.
Don't take my word for it - how about the word of Mathew Simmons, advisor to the Bush Administration on Energy Policy (as quoted from Life After the Crash):
"The situation is desperate. This is the world's biggest serious question."Hey, I support Kerry and the Dems, but he is totally out to lunch about the US being energy independent. US oil production peaked in the 70's. So did our production of natural gas.
In an August 2003 interview, Mr. Simmons was asked if it was time for Peak Oil to become part of the public policy debate. He responded:
"It is past time. As I have said, the experts and politicians have no Plan B to fall back on. If energy peaks, particularly while 5 of the world’s 6.5 billion people have little or no use of modern energy, it will be a tremendous jolt to our economic well-being and to our heath - greater than anyone could ever imagine."
When asked if there is a solution, Simmons responded:
"I don’t think there is one. The solution is to pray. Under the best of circumstances, if all prayers are answered, there will be no crisis for maybe two years. After that it’s a certainty."
Simmons' message has remained consistent. At a May 2004 conference on Peak Oil, he predicted oil will be priced at $182 per barrel in the near future - over five times its current price. Keep in mind, this is Simmons' prediction for oil prices in the near future. It's anybody's guess how high they will be in 10 or 15 years.
Back then the Texans had a saying for the Yankees: Let the bastards freeze in the dark! We all may be freezing in the dark before long.