Wednesday, June 29, 2005

What's the result? War for oil?

In the process, he [Simmons]has become a friend
and associate of many of the top figures in the
oil industry, including George W. Bush and Dick

Perhaps he's a propaganda organ for George and
He has also accumulated a vast storehouse of
information about the world's major oil fields,
the prospects for new discoveries, and the
techniques for extracting and marketing
petroleum. There is virtually no figure better
equipped than Simmons to assess the state of the
world's oil supply.

He says, this guy says...who's to be believed?

Nobody knows.

Too many lies and/or mistaken assumptions to wade
The moment that Saudi production goes into
permanent decline, the Petroleum Age as we know
it will draw to a close. Oil will still be
available on international markets, but not in
the abundance to which we have become accustomed
and not at a price that many of us will be able
to afford.. Transportation, and everything it
effects -- which is to say, virtually the entire
world economy -- will be much, much more costly.
The cost of food will also rise, as modern
agriculture relies to an extraordinary extent on
petroleum products for tilling, harvesting, pest
protection, processing, and delivery. Many other
products made with petroleum -- paints, plastics,
lubricants, pharmaceuticals, cosmetics, and so
forth -- will also prove far more costly. Under
these circumstances, a global economic
contraction -- with all the individual pain and
hardship that would surely produce -- appears
nearly inevitable.

Will oil eventually go the way of whale oil which
went with the introduction of petroleum?

Remember whale oil?

What's the big deal?

But this time the lights will probably go out
with plenty of oil in the ground.

Have you looked at the capital markets lately or
how much bureaucratic paper it takes to build a
refinery? How does oil exploration capital
compete with taxpayer-funded bummint debt? The
latter is supposedly a sure return on investment.

And how do you make gasoline and the hundreds of
other products that come from oil out of all that
bureaucratic paper?

No, if the lights go out, they'll go out with
plenty of oil in the ground.

The folks that are intent on seeing you with your
wooden hoe tending your tomato patch are working
hard at the ones above...consciously or
not...but what does it matter if the effect is the

The political economy will win...for awhile.

See what this fellow says.

Then see what this guy says.

Then decide for yourself.