How will the economy recover in an environment

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of declining oil production?



Crude oil production has been declining since 2005 and is expected to continue declining until it is no longer profitable to produce. Not even consistently high oil prices have been able to increase production for the past five years. Add to that the increasing need to go to ever more extreme measures and environmentally sensitive locations for exploration while producing less and less each year.

Considering all this, how can our economy ever be expected to grow again without a corresponding growth in energy production?

[jtuck004]

1. Maybe we need to move into a new era where we

find new sources of innovation to increase GDP and alternative sources of energy to drive the economy...

China is investing billions into alternative energy, because they think that is the future, even as they surpassed our buying of oil this year. If they are correct, those that are still employed over the next few years may wind up being their customers and beholden to them.

Ironic. Our nation complains that China just copies our technology and lacks innovation. We may be eclipsed by China because while we are whining and propping up reckless, insolvent, and illiquid financial firms that, for the most part, don't produce jack, China's government believes, strongly, in investing in their own country and people.

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2. Therein lies the rub...

According to the IEA, Chinese energy consumption now surpasses the U.S. Think about that for a moment. Skant months ago, the U.S. used more energy per annum than any other country. Now it's China. And they overtook our consumption "at breakneck pace".

http://www.countercurrents.org/cohen220710.htm

Also, while the U.S. has been blasting its way around the world stealing other country's resources, the Chinese, in traditional business suits and business-class airline seats, have gone to the centers of energy production and conducted good old-fashioned business deals, using traditional contracts, and as a result have secured more resources than we have taken by force. And they are making friends instead of enemies. In fact, they have cornered the market on most rare-metals. Meanwhile, as we continue to ignore the problem as if it does not exist.

Finally, oil is required to develop any alternative energy system. Oil is required until it's replacement can takeover. Problem with that is, there is nothing that is as energy dense as oil and there is nothing that can scale up to the the 73,000,000 barrels the world uses of oil each and every day.

China knows what's up. And they have proven that they are immensely smarter than we are.

Check mate.

[LiberalLoner]

3. You are exactly right - and the ride down is not going to be very pretty for the U.S....n/t

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4. Especially when people simply REFUSE to discuss it, as is the case on this board. n/t

[jtuck004]

5. yup - and we are (or at least were) so much more capable than this.

There's a book out there called "Who Moved My Cheese". Usually recommended to individuals for whom moving on after an economic or life tragedy leaves them floundering and trying to live a life that no longer exists.

Until recently I had never thought about the need for a whole damn nation to read the silly thing.

But until they do, I am working daily on improving my gardening and baking skills. Maybe we will still be able to eat and sell a little bit. ;)

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6. This is typical of the success this topic has on DU. Why don't y'all

ever want to discuss this MOST IMPORTANT issue/problem?