About 6 months ago I learned of the Peak Oil Theory. (I won't explain it all here. google it and look it up. It's getting very easy to find numerous reports) I freaked out and couldn't sleep for a few days. I brought it to the attention of everyone I knew to get some resolve. And it did. Everyone said it couldn't happen, it won't happen, it's America, we'll figure it out. Well with the recent Oil Crisis' and reports, the impossible is begining to take shape again. The theories that made sense to me originally are making better sense with each day. To some this could be the most devastating thing to hit the world over. To others it may be as little a recession.
There's two key points to the Theory.
1. Instant inflation occurs (not when oil runs out) but simply when oil consumption surpasses oil production (or extraction) regardless of reserves. This is, roughly, Peak Oil. The big problem here is to know when this will actually happen. As you do your research you will learn why it's difficult to measure oil production vs consumption. Most theorists have suggested that it will happen in the next 6 years, some say it may have already occured a couple years ago which may be the reason for price recent jumps.
2. This is not just about what you pay at your pump. Nearly everything we produce and consume here in the US is dependant on Oil. Plastics, Food, Travel, Delivery, Power. It has an enormous effect on everything... every-thing.
This is a very brief description of Peak Oil. For those of you who have been following this issue please help in explaining. For those of you who can debunk this theory please explain. ( I will only listen and believe Allen Greenspan at this point, and even he seems a little worried by this issue)
Here is a recent article in the NYT which has motivated me to finally start this thread. It's basicly offering that Oil companies have been very misleading about their oil reserves:
(free registration required)
http://www.nytimes.com/2004/06/12/business/12RESE.html?hpAn Oil Enigma: Production Falls Even as Reserves Rise
By ALEX BERENSON
" In the 1990's, many public companies used aggressive accounting gimmicks ? some legal, some not ? to satisfy investors' demands that they report higher earnings. Oil companies face similar pressures to build reserves. And intentionally or not, some companies may have booked reserves that are not technically or economically viable, said Matt Simmons, a Houston investment banker who has warned of a potential supply crisis. Outsiders have essentially no way to know whether estimates of reserves are accurate, he said.
"We're going to have another Shell," Mr. Simmons said. "They're not the only company that got optimistic on proved reserves." Neither Mr. Simmons nor anyone else is asserting that ChevronTexaco did anything illegal."
Here's a link that will cause you to shit your pants:
http://www.lifeaftertheoilcrash.net/Home.html This may ease your worries:
http://www.csis.org/energy/040427agenda.htm
