Peak Oil and the Inflation Lie

Peak Oil and the Inflation Lie

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Rising energy costs are inflation. You cannot have one without the other. Energy, and energy-related material, is the lifeblood of modern industrial life. When the cost of energy (including oil, natural gas, electricity, and the products made with petroleum, such as plastic) goes up, the cost of everything goes up. This is inflation. When energy is depleted, while the use and demand for energy continues to increase, the price of energy skyrockets. Inflation, again.
It is a fact that the world is in the early stages of Peak Oil and Gas---permanent shortage, and permanent depletion. The world oil peak occurred in November 2005, according to renowned scientists, geologists and industry experts.
It is therefore a fact, with permanent shortage with high, rising and insatiable world energy demand, that rising inflation is not only a problem now, but also a permanent condition.

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Can't we handle the truth? Do we need to be protected from dismal reports to keep us from doing ourselves harm? Why don't they include energy in the inflation figures?

Doesn't everyone all ready know that we are paying more for gas than ever before and that that increase is leading to increased prices across the board? Should we thank the government for their paternalistist concern for our fragile egos or demand that they tell the truth about the energy situatiuon?

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There are trillions upon trillions of untapped natural gas reserves in Canada & Russia. Natural gas is so abundant that it is difficult to keep it's price from crashing as a commodity. There were 800 drilling rigs in Alberta alone 2 years ago. Most were chasing natural gas. Most of these Drilling rigs are starting to be stacked and all the service companies that come with the industtry are sitting idle. In Fort McMurray, Red Deer, & B.C.'s Fort Nelson there is a home mortgage foreclosure every 24 hours because there is no work for all these people. 2 yrs ago these people were living in half a million dollar to over a million dollar homes, driving 80 thousand dollar trucks stacked with all kinds of toys like quads, snowmobiles, Harley's & choppers, boats, etc. Now there is no work and these young roughnecks are loosing their shirts. THIS IS NOT FROM an OIL & NATURAL GAS PEAK but from TOO MUCH stockpiled RESERVES and falling prices. Skyrocketing gasoline prices are from lack of refinery capacity being bottlenecked through less & less refinining ability. Hurricaine Katrina & a Fire in Ontario have wiped out refineries. Strict enviroment controls have prevented anyone from building anymore refineries. In Saskatchewan Canada at Loydminster the Provincial Gov't lost it's shirt trying to build Husky Oils refinery and had to be bailed out by Shanghi Investors from China and an incredible loss to provincial tax payers.

Oil peak is another fear tactic and flat out bold lie. The real reason is we are swimming in the stuff.
It's time to shoot the members of the CFR, the RIA, Bilderbergs and the Tavistock institute from all this B.S. everyone is bombarded from by the corporate owned media.

posted by polanksi

Peak Oil and Inflation
Energy costs are rising . . energy and energy-related material is the lifeblood of industrial life. When the cost of energy (including oil, natural gas, electricity, and the products made with petroleum such as plastic) goes up, the cost of everything goes up. This is inflation.

It is a fact that the world is in the early stages of Peak Oil and Gas - permanent shortage and permanent depletion. The world oil peak occurred in November 2005, according to scientists, geologists and industry experts. [Edited by Don W]

posted by BattleofBatoche

There are trillions upon trillions cubic feet of untapped natural gas reserves in Canada & Russia. Natural gas is so abundant that it is difficult to keep it's price from crashing as a commodity. 2 years ago there were 800 drilling rigs in Alberta alone. Most were chasing natural gas. Most of those drilling rigs are now being stacked . . Up here there is a home mortgage foreclosure every 24 hours because there is no work for all those people. Now there is no work and the roughnecks are loosing their shirts.

THIS IS NOT FROM an OIL & NATURAL GAS PEAK but from TOO MUCH stockpiled RESERVES and falling prices.

Gasoline prices at the pump are skyrocketing from lack of refinery capacity . . Hurricane Katrina & a Fire in Ontario have wiped out refineries. Strict environment controls have prevented anyone from building anymore refineries. In Sask. Provincial Govt. lost it's shirt trying to build a refinery and sustained an incredible loss to tax payers.

Oil peak is a fear tactic and a flat out bald lie. We are swimming in the stuff. It's time to shoot the members of the CFR, the RIA, Bilderbergs and the Tavistock institute from all this BS everyone is bombarded with by the corporate owned media. [Edited by Don W]

May I add, Mr BattleofBatoche, that a large part of this misconception (Peak Oil) arises from the use by industry observers and commentators of the terms “reserves” or “known or proven reserves” interchangeably, or so it seems to me.

When a field is first located, it’s contents are estimated. Over time, as more and more of the field is exploited, those estimates become firm so that we can call them “proven” reserves as opposed to estimated “reserves.” These classifications are useful to the industry in planning when and where to drill new wells, but to us consumers, they are highly susceptible to manipulation especially if we are not sure exactly what the numbers or classifications mean.

This problem - when will we run out of oil? - is complicated by the fundamental assumption that oil is a finite resource. We are smart enough to know when it’s all used up, there will be no more. But we do not know when that will be. Maybe it was meant to be helpful when some oil theoreticians started the “peak oil” theorem as that point when consumption exceeds production. Both of those quantities are variable. I believe in 2007 the world produces 85 million barrels of crude oil a day and that we consume 84 million barrels a day. The slightest decline in production can cause disproportionate rises in the daily price of crude oil.

I think PEAK OIL is a valid theory, but that with so many variable it is impossible to say when that will happen and I certainly agree it did not happen in 2005. Peak Oil being defined as that point in time when consummation exceeds -maximum possible- production.

[edit on 5/21/2007 by donwhite]

Originally posted by donwhite


I think PEAK OIL is a valid theory, but that with so many variable it is impossible to say when that will happen and I certainly agree it did not happen in 2005. Peak Oil being defined as that point in time when consummation exceeds -maximum possible- production.

[edit on 5/21/2007 by donwhite]

Don’t you think donwhite that this peak oil theory has been exploited for the sole purpose of the oil industry to make the record profits that they are reaping since the present administration has been in power?

Also keeping the agenda of the increasing consummation vs no enough production is nothing more than control of markets.

Then I think who is at fault? The theory of Peak oil or the lack of production by the producers of oil.

Then I think also, where our own resources been reap here in America are going? Why not for the consumption of the people of this nation.

Then I figure that no matter how we may slice it is nothing more than control for profits.

What do you think.

posted by marg6043

posted by donwhite: I think PEAK OIL is a valid theory, but it is impossible to say when that will happen . . I agree it did not happen in 2005. Peak Oil being defined as that point in time when consummation exceeds -maximum possible- production.

Don’t you think donwhite this peak oil theory has been exploited for the sole purpose of the oil industry to make the record profits that they are reaping since the present administration has been in power? [Edited by Don W]

Yes. Rule 1 of Dominators: “When the facts are difficult or are against you, obfuscate!”

Also keeping the agenda of increasing consummation vs no enough production is nothing more than control of markets. Then I think who is at fault?

On Friday, gas was $2.87 point 9, then on Saturday, when I bought gas, it was $2.98 point 9, but on Sunday, it was $3.18 point 9. I have not been out yet, Monday, so I don’t know how much it is today.

It’s our fault. What do you think would happen if we the people built 3 new refineries, one to serve the Atlantic coast, one to serve the Gulf coast and one to serve the Pacific coast? Suppose further we included storage facilities with each refinery for 333 million barrels of crude oil, total storage of 1 billion barrels. Enough to run the US for 50 days. With this size of on-hand reserves, the daily fluctuations could be avoided. Why not?

I think also where our own resources been reaped here in America are going? Why not for the consumption of the people of this nation. I figure that no matter how we may slice it is nothing more than control for profits. What do you think.

Because oil is fungible - that is, one bbl is as good as the next bbl - it is not critical that we keep our own oil for ourselves. We do have a Strategic Reserve of about 800 million bbls in the old salt mines off the Louisiana coast but that’s held primarily for the Military. We civilians can walk.

Yes on control.

Remember the Energy Policy Meeting chaired by VP Cheney and which set our national policy? Bush43 will not release the manes of the attendees. Of course, we can see now what the national policy was then: raise the average price of a gallon of gasoline from $1.75 in 2000, to about $3 in ‘07 and I’d guess, $4 by the end of ‘08. That WAS the policy.

[edit on 5/21/2007 by donwhite]

These people's meeting are always behind our backs and under close doors, even when the decisions they make affect us the littler people that need gas and are the biggest consumers.

DonWhite I am afraid that the inicial prediction I make a year ago is going to be fulfilled . . . the top aiming bracket is to be between 4 and 5 dollars for gas before Bush and Cheney leaves the white house.

Plus a big fat contract with all the rights to the Iraqi oil, meanwhile is nothing for us to gain from all this at all.

Actually my point was that inflation is really higher than usually noted, because they leave out gas and the ripple effect of high energy prices. It seems to be very acceptable for the media and gov't to down play the real inflation figure. They continue to blame wages for inflation when in fact everything we need to live is going up in price. The worker is once again the victim.

Does anyone else think it odd that oil companies are reporting record high profits, yet the cost of a gallon of gas keeps increasing? What prevents these companies from reducing their profit margins and lowering the cost of fuel across the board? It would appear to be greed that is driving up the price of oil and gas. Oh, and don't expect anything to be done about it, because politicians only appear to represent coporate interests.

As of Friday May 18th I started taking the bus to work, I'll be saving $10 bucks a week, haha, I'll just have to put up wiht cranky bus drivers, seat close to stinky people, and maybe I'll have to seat beside somebody that's got the flu, but 10 bucks a week are sure worth it.

[edit on 21-5-2007 by bartholomeo]

[edit on 21-5-2007 by bartholomeo]

posted by polanksi

My point was that inflation is really higher than usually noted, because they leave out gas and the ripple effect of high energy prices. It seems very acceptable for the media and gov't to play down the real inflation figure. They continue to blame wages for inflation when in fact everything we need to live is going up in price. The worker is once again the victim. [Edited by Don W]

Did not the Israelites complain of the weight of the tasks they had to do for the Egyptians? I am reminded that the 1700s French who ran sugar plantations on the island of Hispaniola - the Haiti side - until the whole native population of about 30,000 died of hard work! This resulted in bringing n African slaves who perished after 5-7 years labor, but new slaves were cheaper as a slave's cost was recouped in 2-3 years. Sugar was one of the most desired products of the New World.

I noted your point re inflation, Mr P, but I was more concerned over the Peak Oil thing and edited out your cogent observations on inflation. Sorry about that. You are right-on in re inflation and the R&Fs, Rich and Famous.

[edit on 5/21/2007 by donwhite]

Just because prices rise, does that necessarily mean inflation? Inflation is an increase in price without an increase in value. It seems here that the high price of energy pushes up the prices of other things because the value of the goods increases: they are more valuable because they are more expensive to transport. Does anyone here know more about this than me?

the sad truth is we will never know.

The only thing we have on our side is the c*nts in government and the c*nts who control the production of oil, depend on our continued use of the stuff to stay in business.

Make oil to expensive and people will be unable to buy fuel , they will stay at home , crime will increase 10 fold. Not only does it have grave consequences for us it means they loose the thing they crave most after power, money.

All i see in todays society is a deliberate widening of the social classes.

what the f*ck is happening to the world.

Tombangelta, a little decorum, please? How does that solve anything?

I'm sorry.. that article is a load of crap. Inflation my ass.. Its from a Canadian research firm, which you bet your ass is funded by oil companies.

Be a Canadian from Alberta itself, I can say that we're in the middle of a revival of the 80s oil boom, which in turn had a HUGE collapse.. and sure enough its going to happen again. BOOM! its all going to collapse.

Sorry, I'm bitter right now about this crap. The boom has over-populated the cities in Alberta, and made the cost of living so high, that a lot of people are suffering.