12-22-2006, 03:34 PM
the whole "peak oil" phonomenon is misunderstood by many self-proclaimed "environmentalists" who are spreading a great deal of mis-information.
First off, Middle Eastern oil is not running out. Saudi Arabia's reserves are still the subject of much speculation, they claim to be able to supply 15 million barrels a day for the next 50 years (currently they produce 9 million/day). Iraq has reserves comparable to Saudi, but recently, the locals have more pressing concerns (such as getting rid of the US army)
Russia has enormous untapped Siberian reserves, as does Canada, Indonesia, Central Africa, the South Atlantic and Antartica. These untapped fields have so far remained undisturbed, as it currently isn't economically viable to start operations there. It probably won't be in the forseeable future, due to the forcasted weakening world economy and decreasing demand from China and the far east. But the oil will still be there if some disaster happens and the ME implodes.
THE SKY IS NOT FALLING.
Now the bad news.
Economic forcasts for the next 10 years predict that global demand will exceed supply. This may be crystal-ball gazing, but China now had a taste for the black stuff. They've reined in their consumption due to the high world oil prices, but when the economy makes it's next upswing in 2008 things will change.
Great depression? hardly! There's an expected economic slowdown in reaction to the huge growth this year, but nothing to panic about. Move your money into gold and precious metal funds and ride it out. I've decided to put off any property purchase for the next 1-2 years and let the gold markets hold my cash.
Don't go investing in tinned food and shotgun shells just yet
First off, Middle Eastern oil is not running out. Saudi Arabia's reserves are still the subject of much speculation, they claim to be able to supply 15 million barrels a day for the next 50 years (currently they produce 9 million/day). Iraq has reserves comparable to Saudi, but recently, the locals have more pressing concerns (such as getting rid of the US army)
Russia has enormous untapped Siberian reserves, as does Canada, Indonesia, Central Africa, the South Atlantic and Antartica. These untapped fields have so far remained undisturbed, as it currently isn't economically viable to start operations there. It probably won't be in the forseeable future, due to the forcasted weakening world economy and decreasing demand from China and the far east. But the oil will still be there if some disaster happens and the ME implodes.
THE SKY IS NOT FALLING.
Now the bad news.
Economic forcasts for the next 10 years predict that global demand will exceed supply. This may be crystal-ball gazing, but China now had a taste for the black stuff. They've reined in their consumption due to the high world oil prices, but when the economy makes it's next upswing in 2008 things will change.
Great depression? hardly! There's an expected economic slowdown in reaction to the huge growth this year, but nothing to panic about. Move your money into gold and precious metal funds and ride it out. I've decided to put off any property purchase for the next 1-2 years and let the gold markets hold my cash.
Don't go investing in tinned food and shotgun shells just yet