Peak Oil is probably here


Peak Oil is probably here


You will have to forgive my recent run of pessimistic posts, but at least I’m on a different topic. A recent energy industry report concludes that conventional worldwide oil production is being outstripped by demand. They predict oil prices will soon hit $100 barrel.  "Conventional oil" doesn’t include things like biofuels like ethanol and biodiesel.  Nor does it include unconventional oil like the stuff we are pulling out of the tar sands.  Unfortunately it is unlikely that all these alternative sources of fuel will be able to make up the short fall.

 

As demand continues to outstrip supply the price of oil will continue to steadily climb.  So many things in our society are built assuming we have all this cheap energy we pull out of the ground.  In the next 10 years we will see some dramatic changes as we adjust to reality of finite non-renewable energy reserves.  Cities will begin to build up instead of out.  Less and less people will be able to live in a home by themselves.  We will see cities reverse core as more affluent people buy homes in the middle of the city and the value of suburban properties will drop.  We in North America will have to get used to higher prices for imported foods.  I imagine a lot more of us will be planting gardens.

There is really only one solution.  We have to drive more fuel efficient cars and drive them less.

Here is a short video on Peak Oil

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