As you all know I've started researching about oil and how to profit from the idea that the price is just going to keep on rising.
Today I spent several hours reading what seems to be a 5 million word essay on how we're running out of oil. There were links to probably 75 other articles supporting this claim. The site called
Life After the Oil Crash paints a very dismal picture for the future. For the few of you that have better things to do on a Saturday evening, here are a few salient points.
- We took 125 years to consume the first 1 trillion barrels of oil and 30 years for the next trillion.
- We've peaked in oil production.
Demand is increasing by 2%/year while output is decreasing 3%/year.
- Renewal sources of energy aren't as good at producing energy as oil is, and will
barely dent the dependancy on oil over the next several decades
- "Big Oil" already know about this and are trying to do something about it. In fact a lot of them own alternative sources of energy companies.
- Oil will hit $200 per barrel and gas prices $10/gallon at the pump in the near future.
- The so-called war on terror will last 50 years because thats as long as the major oil-producing countries have to produce most of their oil.
- Once we run out, it'll end civilization as we know it.
Thats what the site says anyway. The incredibily high fuel prices will affect all major aspects of our society and might cause a global economic meltdown.
I though it was an exceedingly well-researched report and after going through countless of supporting articles I can't really find a whole lot to dispute. Of course I'm optimistic in my belief that we'll discover an alternative to oil and life will be peachy. However I'm still going to hedge my bets and continue my efforts to find a way to invest in oil. [Kind of like the profound "Trust in God, but lock your car!" phrase]
If you're interested in learning more without spending your whole weekend, I recommend watching this DVD -
The End of Suburbia: Oil Depletion and the Collapse of the American Dream
I've read that article. Very ominous. I'm not sure what it implies we should do, though. Live like pathtofreedom.com and invest in gold?
Great blog!