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High Gas Prices Got You Down?

| 5/16/2011 9:39:07 AM

North Americans are putting a lot of energy into getting angry over the price of gas these days. Oil companies are ripping us off. Enough is enough. We’re being fleeced. It’s all a scam.

Well I’ve got news for you. You ain’t seen nothing yet!

We are past “peak oil” and this is what the future looks, only much worse.

In 2005 Matthew Simmons wrote a pivotal book on peak oil called “Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy.” Simmons was an energy investment banker who also served on George W. Bush’s Energy Working Group. He spent a great deal of time and energy looking at the research done by geologists from Saudi Arabia, the world’s largest producer of crude oil. For years the Saudis had denied that there was any problem with their ability to supply endless cheap oil, but Simmons disagreed. He looked at the reports that their geologists presented at conferences and realized that the problems they were discussing indicated that their wells were starting to slow down. When this happens you start pumping water in to push out what oil remains and their main well, Ghawar, the largest oil well ever discovered, was having massive amounts of seawater pumped into it to extract oil. Since the Saudi oil company Saudi Aramco is owned by the government, they are not required to tell anyone how much they have and there is proof that their numbers are heavily fabricated.

Simmons was part of a growing number of geologists and other people who work in the oil industry that are starting to talk about peak oil. They formed the Association for the Study of Peak Oil (ASPO) People in the mainstream media and the oil industry often lumped these professionals in with the tin-foil hat crowd who suggested the Apollo space landing was filmed on a sound stage. When you mentioned peak oil you’d often be referred to as one of those “peak oil nuts.”

frank lee
6/20/2011 1:33:28 AM

Anyone? Beuller?

frank lee
5/27/2011 11:59:15 PM

"...but from the poor on up through the middle class, who need to drive a big, inefficient car to get to work, things are only going to get dramatically worse" Ok, I'm dying to know, why would the poor/middle class be saddled with big inefficient cars unless that is WHAT THEY CHOSE?

5/27/2011 10:29:42 AM

When we visited friends in the U.K. a couple of years ago, they were paying $7.00/liter for gas ....... and the price they have paid for gas has been similarly high for a long time. You can see the impact of such prices in the size of vehicles. Tiny, fuel-efficient. European countries in general are way ahead of the US in recognizing the need for less wasteful ways, for various reasons. We love our SUVs and 'manly' big engines. Unfortunately (for us) our country's infrastructure and transportation system, particularly the western 2/3, is literally built around the automobile. Leaving aside the whole issue of food growing, the day-to-day reality is that, it's going to be pretty tough to get around, ie to a job, when gas reaches its 'true' price. The rich can afford (literally) to ignore the cost, but from the poor on up through the middle class, who need to drive a big, inefficient car to get to work, things are only going to get dramatically worse.

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