Over the past two weeks I have become a Peak Oil believer. Up until recently, I was still hoping to find something that would debunk it. I should add that I first heard about Peak Oil in late 2002.
Now with the news that Kuwait's reserves have been grossly overstated, I am finally resolved to the fact that Peak Oil is not only a real threat but that it's arrived.
Here's some more bad news:
"If this is so, why don't they say so? Probably because they are unstable régimes with booming populations, like Saudi Arabia, and fear that if they told the truth the US might invade them to grab the remaining oil. Or their people might revolt if they found out that their already declining standard
of living was about to drop further.
If we have hit the structural production peak of oil worldwide, then the trajectory of prices will be relentlessly upward, with only temporary respites. The spokesmen will blather on about 'terrorism' or 'refinery fires', but the prices will tell the real story. If the increasing prices start a recession that reduces demand, there will be another temporary 'respite' as production continues a relentless decline after we have gone over the peak.
"Oil prices will rise through 2008 and stay high thereafter as demand increases and concern mounts that global production is nearing its peak," according to analysts at Lehman Brothers Holdings Inc. (March 8, 2005)
When Lehman Brothers admits oil is peaking on Bloomberg, its time to fasten your seatbelts. The ride is going to be rocky."
I feel nauseous.
Don't block the bathroom, okay?.