Reply #7: Supply Not Keeping Pace With Demand. Peak Oil? [View All]

[Strelnikov_]

Following is an article that outlines how the emergency energy reserves are coordinated by the IEA. It also mentions how the Europeans are pissed that they are paying high prices due to shipping us tankers of refined product so US drivers can run around in living rooms on wheels.

The Peak-Oil Crisis: The Storms of August
http://www.fcnp.com/527/peakoil.htm

Already, European editorial writers and columnists are starting to grumble. They raise the specter of Americans in Hummers, gobbling up Europe 's heating oil for next winter. The head of the IEA warned that there will be a worldwide energy crisis if the US tries to replace its missing oil production and gasoline refining by outbidding everyone else on the world market. As usual, it is the poor African nations that will suffer the most. Furthermore, it is becoming evident that $3-4 gasoline does not significantly reduce American consumption and that we will continue driving at our normal pace until stopped by still higher prices or general shortages.

Following article is more about the Europeans being pissed.

Europe: U.S. Should Ease Oil Use

http://money.cnn.com/2005/09/10/news/international/energy_us.reut/index.htm

Luxembourg Prime Minister Jean-Claude Juncker told reporters at a meeting of finance ministers in Manchester the United States had to improve its energy efficiency. Asked whether European ministers had agreed on a document on oil efficiency for the G7 meetings in Washington, he said: "We will use our G7 meetings in Washington in two weeks to have a frank word with our American colleagues on the issue."


Following is a good summary of the demand destruction that is occurring in poorer countries that are being priced out of the oil market. Just another sign that peak oil has arrived, and the last man standing endgame has begun.

The Silent Oil Crisis
by James Howard
25 Aug 2005

http://www.energybulletin.net/8416.html

Just as rising sea levels threaten to flood low-lying lands unable to protect themselves, rising oil prices threaten countries with weak (low-lying) economies. Rising oil prices are a rising tide, and there are many examples to look at. The countries that will be first affected by rising oil prices are those with a more youthful oil-dependent economy or those that do not have the economic strength – either as a nation, or as individuals, to cope with it.

. . .

What we have seen then is just because the rising price of oil does not seem too damaging to us, it is already damaging many parts of the world where it is having a similar effect to how the 1970s oil crises affected the world. There are two obvious options left for everyone in the oil game, on whatever level. Those options are that you compete or you concede.


And, OPEC production has flatlined.

OPEC Output Increases Just 10,000 Barrels Per Day in August

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=ind_focus.story&STORY=/www/story/09-09-2005/0004104012&EDATE=FRI+Sep+09+2005,+01:32+PM

"It is becoming increasingly obvious that in the short term most OPEC countries cannot produce much more than they are doing," said John Kingston, global director of oil at Platts. "We are seeing very small increments even though prices are higher, in nominal terms, than they have ever been."