Oil's tipping point has passed

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posted on Feb, 1 2012 @ 02:03 PM
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Commentary in Nature: Can economy bear what oil prices have in store?


Stop wrangling over global warming and instead reduce fossil-fuel use for the sake of the global economy.

That’s the message from two scientists, one from the University of Washington and one from the University of Oxford in the United Kingdom, who say in the current issue of the journal Nature (Jan. 26) that the economic pain of a flattening oil supply will trump the environment as a reason to curb the use of fossil fuels.

“Given our fossil-fuel dependent economies, this is more urgent and has a shorter time frame than global climate change,” says James W. Murray, UW professor of oceanography, who wrote the Nature commentary with David King, director of Oxford’s Smith School of Enterprise and the Environment.

The “tipping point” for oil supply appears to have occurred around 2005, says Murray, who compared world crude oil production with world prices going back to 1998. Before 2005, supply of regular crude oil was elastic and increased in response to price increases. Since then, production appears to have hit a wall at 75 million barrels per day in spite of price increases of 15 percent each year.

“As a result, prices swing wildly in response to small changes in demand,” the co-authors wrote.


The era of cheap oil is going away. If the threat of climate change was not enough to force us off fossil fuels, their depletion would unavoidably do so. And seems like the cheap oil peak was already here. From now on, it will only get more and more expensive.




posted on Feb, 1 2012 @ 02:10 PM
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The rich have killed everyone who won't buy oil through them and are now bumping up the price.

they did the same with the diamonds.

the shocking things is these people are also in charge!



posted on Feb, 1 2012 @ 02:17 PM
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Originally posted by Beavers
The rich have killed everyone who won't buy oil through them and are now bumping up the price.

they did the same with the diamonds.

the shocking things is these people are also in charge!


Funny you should bring up the diamond monopoly, it's an open secret they've got more than enough diamonds to flood the market, and the US has a strategic oil reserve; While the US could open up the oil reserve to the market it is probably going to keep it closed until things start to get really shaky concerning the economy, the small rumblings we see now aren't enough to shake the lid off.

There isn't really a high demand for diamonds, very much a novelty item now that industrial diamonds can be made cheaply. But Oil isn't a commodity like diamonds are in the market, the analogy only holds up to a first glance.

I do like that you brought up the concept of monopoly though.



posted on Feb, 1 2012 @ 02:19 PM
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Production peak is not necessary caused by the natural aviabillity of the resource, we have a lot of politics involved here too. However, I guess the natural peak will occur no longer than 2015 or maybe already happened around 2008..



posted on Feb, 1 2012 @ 02:24 PM
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1. Oil ABIOTIC* is. This means, in short, that it's everywhere, provided you dig it deep enough.

Sure TheBigPetroYankeeArabComplex still prefers to make bucks upon the old, common paradigm of a rare woot diggable only by those who can dig it. Heheh.

(*Despite western propaganda sliming all over the internetz. Dig it up. Deeply.)


2. Oil is only necessary to the US Way ov'Life. Cf 1.

3. The World will soon get rid of Oil.






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