Peak Oil
Peak Oil
Following is a short article written by a conservative columnist. It clearly delineates the relationship between the price of oil (barrel of oil) and the price of our (American/Western) lifestyle. It is well written and accurately portrays the consequences of rising oil prices. The reality that the price of oil will rise is inevitable. The International Energy Agency (IEA) in its World Energy Outlook for 2010 announced the reality of 'Peak Oil', the phenomenon that applies to all non-renewable resources in which the supply of that resource has 'peaked' (which means the top of the supply curve has been meet and the supply will only continue to diminish). The IEA not only confirmed the reality of 'Peak Oil' (which of course has been an ongoing and urgent topic on the fringes of our culture for decades), they established that it occurred in 2006 (four years ago).
This does NOT mean we are out of oil, it means we are out of 'cheap' easy to find oil. It means that in the (near) future that the price of a barrel of oil will continue to rise (go up). This, of course, effects our whole cultural infrastructure (as pointed out in the following article) since this infrastructure has been developed on a platform of (artificially suppressed) inexpensive energy. So, not only has the supply of easy to reach, relatively inexpensive oil peaked, incrementally diminishing the supply of oil, other nations (ex: China and India, etc) are aggressively modeling the Western industrialized lifestyle, dramatically increasing their demand for more and more oil. These realities will only drive the price of oil higher and higher. This was the emerging reality pointed out by the ex-CEO of Shell Oil Company.
Transition Town(s) exist to inform communities about these emerging realities (the current and future effects of peak oil, climate change and an economic system which is totally unsustainable) and the possible consequences to our cultural infrastructure, so that there is a possibility of appropriate preparation and the 'opportunity' to restructure/remake our cultural infrastructure so that it is more humane, more just, authentically more community-oriented, and authentically resilient and sustainable.
Former Shell CEO says gas headed for 5 bucks per gallon
The former head of the Shell Oil Company stated Monday (1/10/2011) that with the current market price for a barrel of oil nearing $92 and headed for over $100, the price for a gallon of gas in the U.S. could hit $5 per gallon in the not-too-distant future.
Others have estimated an even worse scenario.
As speculators began to note that the future price of oil was headed through the roof due to increased competition from developing nations such as China and India, and as a result of Obama Administration policies on so-called 'global warming,' some market observers predicted a possible $7-10 dollar range for a gallon of gas in the near future. Such a scenario, of course, would bring any slim hope of an economic recovery to a screeching halt.
In 2008 the U.S. experienced the largest hike in the price of gasoline in its history. That experience taught us a valuable lesson. Americans definitely have a price threshold that they will not cross when it comes to fuel for their autos. The threshold was $4 bucks per gallon. When the average price for a gallon of gas went over the $4-dollar threshold, Americans began to limit their driving, switch to cheaper transportation, or stop driving altogether.
Although this has long been the radical environmentalist's dream, i.e., gas prices being so high that Americans are forced to stop using oil, what the extremists fail to realize is that such an untenable hike in oil prices will have far-reaching consequences that go way beyond driving a car. Prices for EVERYTHING will go through the roof, including basic necessities such as food, shelter, water, electricity, and other forms of energy.
The reason is not far to find.
Society is ultimately dependent on oil, whether we like it or not. When the price for oil becomes more than Americans are willing to pay at the pump, the real sticker shock will begin when they see the massive increases in their grocery store bills, electricity rates, air fares, and just about everything else. Airlines will be forced to raise fares beyond the ability of most Americans to pay. This means many airlines will go out of business, and, with the transportation industry crippled across the board, other areas such as construction will suffer another major set-back as well.
In addition, everyday, common items that contain petroleum products will also skyrocket in price, including medicines, makeup, lip stick, shoes, purses, eye glass frames, umbrellas, clothing, and a host of other staples of modern life.
Even if the best-case scenario occurs--the $5 bucks per gallon predicted by the Shell Oil exec--Americans have already told us in 2008 that this is fully one dollar per gallon more than they are willing to tolerate without serious cutbacks in every area of life.
Thus, the positive spin the media has been putting on the economy of late is premature at best.
