Now, I don't aim to become an oil tragic but really, is anyone paying any attention? I ask because while the US merrily uses a quarter of the world's daily oil production on fueling, amongst other monstrosities, V8, V10 and even, good Lord above!, V12 engined SUVs, the International Energy Authority has issued a warning today which basically says it has understimated the amount of oil still available. That'll be the first time they've even come near the truth - usually they've happy to say the sky is blue, the grass is green and hope you all have a nice day. This comes against a backdrop of $150 a barrel for the black stuff and easily $200 reckoned, (or more) by the end of the year. Meanwhile, for the first time ever we are using more of the stuff than they are managing to pump out of the ground. Hello! Quite simply, no oil producer can raise production significantly - if they could they would, especially at $150 a barrel.
The other thing is, China, and India are cruising along in overdrive and buying as much oil as they can. I know I've mentioned this before but if China eventually has the car ownership level of Germany (itself much lower than the US where even bag ladies seem to have a Ford) then, well, there are not enough raw materials in the world to allow it to happen. Interesting.
I think as a first step you folks in the US should have a couple of days at home with the air con turned off and the plasma TV unplugged so oil production can keep up with supply. I mean, come on, it's only fair, people!
http://poppycock.blog.co.uk/
23/05/08 @ 09:49