So far, the record year for world crude production was 2005, and the recordBut it's his call for action – tucked away in the final two paragraphs – that is so offensive to many of the
month was July 2008. Tellingly, the leveling-off of extraction rates between
2005 and 2008 occurred in the context of rising oil prices; indeed, in July
2008, the price spiked 50% higher than the previous inflation-adjusted record,
set in the 1970s. Yet as both oil demand and prices rose, production barely
budged in response.
While many commentators believe the jury is still out on Peak Oil, the
list of petroleum analysts who say world oil production has already peaked, or
will do so in the next five years, lengthens almost daily, and includes CEOs and
other well-placed leaders within the oil industry.
ideologically pure Post readers that replied in the comments field. Let the market sort it out is the quite predictable, and depressing mantra.
The problem with that approach is that when the market drives oil prices sky high (based on the simple notion of supply and demand) our economies are going to crash. It won’t be the time for investment in new technologies. I’m not a doomer, but, believe me, the best we can hope for is another Great Depression.
Another issue I have with it is that markets are not really as free as they would have us believe. For a start, oil got a huge historical boost from government - just who built all the roads so we'd want to drive? More to the point, they were paid for through taxation.
Anyway, I like leaders who lead, and who can prepare for the future. I’m doing just that myself, right now.