Saturday, May 26, 2007

Peak Oil

It took me a while to understand this whole peak oil thing, I attempted once to blog about it, but didn't feel as though I was doing a good job at explaining it, in simple terms it's when the world peaks at it highest amount of oil production, and then starts on a downward slope because there's just not enough oil in the ground to continue on an upwards slope.

The reason I bring this up now is because of a really good article on Groovy Green that talks about more then just peak oil, and why gas prices are so expensive right now.

Peak Oil will affect us all, like it or not, with or without my dream electric car, oil is used for more than just making gasoline.

4 comments:

Russyl said...

His artical is good but there arae still so many other issues to consider and one can't have that narrow of a view and must consider so many other factors. This subject gets me heated so let me go off.

OPEC contols the majority of production and they have allowed it to plateau in order to rase rates. highger rates help with the escilating cost of extraction, take for example the oil sands.

Americans ran out of mass oil production long ago and have now had to find more creative ways to extract the oil which comes at a higher cost thus raise the price to accomdate the extraction costs. Look at the urgency that they went about trying to open the Alaskan wilderness reseve for oil extraction, mass voulume lower extraction cost.

Why is it that Europe and Asia have been producing more fuel economic vehicals for years. some of those companies are owned by American automotive makers. The Asians can produce a more fuel economic vehical so why don't they sell them here? Why are Canadians paying soooo much more for vehicals compared to Americans, the Exchange reate is what 93 cents? Because no one questions it.

My theory for the deflation in wages is due to Gold. The dollar is based on gold. the government has tried to take that out of the equation for years, even passing laws that you can't possess gold. The dollar is an IOU, for what, Gold. thus look at the run up in gold and the deflation in wages then you have a scary view of the deflation of your almighty dollar. Look at the dispare that americans are in they have printed so much money in the last while that they have devalued the dollar. I was reading an articale today that stated that Canadian companies particularly manufacturing companies are in deep trouble, American investors will stop producing in canada because the cost is higher thus costing canadians jobs...

Anyways there was soo much more that I wanted to say and with all the distractions here I've lost my train of thought. Feel free the next time you see me to discuss this as I am very pasionate about the economics, and the economy.
So till next time or if I remember my thoughts, Later.
Pardon the spelling. Should have taken out my own post?

Darren said...

ummmmmm.......

I agree, we definitely like to point fingers at the 1 responsible person/cause when in almost every instance there is more than one determining factor, ie blaming global warming solely on the back of CO2 is also an unjust statement.

I just basically liked the article, and thought it brought some further thought to mind, and thought it was also a good way, to bring up the topic of peak oil.

would love to hear your organized thoughts Russ.

Russyl said...

That is about as organized as my thoughts are going to get when writing a response to a blog. And I'm not going to blog about this as I don't feel I have the time.
Why don't you do an item about the rising CO2 levels in the oceans?

Nikki said...

lol...that may be the wordiest response EVER! Go Russ...