2008-05-24 — financialsense.com
It means that peak oil is here. We’ve arrived at maximum global oil production. It means that oil production is going to decline in a few years or months. It means that America’s global dominance is coming to an end, and another era is about to be born. Money is being siphoned from the oil importing countries to the oil exporting countries at an accelerating rate. Most significant of all, the power bled from one great power is bound to accrue to another.
While we may indeed have passed peak global output, a more useful way to phrase it is we've already passed peak global free market crude supply. Not only does production seem to have plateaued, but producing countries are consuming more of their own product (due to subsidies), and they are pulling more and more supply off the market and putting it into long-term non-dollar contracts. These three factors probably explain why crude has so far and so suddenly outran other commodities.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.