shereads said:
The oil industry will tell you that this "limited supply" business is a myth. Just last week, there was a debate about this on NPR and a spokesman for oil said, "People have been saying for years that we're going to run out of oil, and it hasn't happened yet."
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I remember attending a meeting 30 years ago with the late Sir James Goldsmith (founder Ecologist magazine & successful businessman) when it was forcast oil would run out in approximately 50 years. Oil will not run out in 20 years, it probably has 100 years of production left, on known reserves. The problem is demand will outstrip supply, sure you can pump it faster, that just makes it run out quicker.
The price of oil will spiral as resources become tighter. The cost of extraction will increase, Saudi Arabia is already having technical problems extracting oil from the worlds largest oilfield, the traditional method of pumping water in to extract oil is resulting in a oil/water emulsion which is expensive (compared with clean oil) to seperate.
I cannot see politicians telling electors, 'Hey people elect me, ok so fuel prices doubled in my watch, but under the opposition they would have trebled.'
Do you honestly think the American people will accept a doubling of fuel prices? We wouldn't in England, we had a fuel strike when prices went up 10c in 2001. But we have a safety net, tax accounts for some 80% of the price we pay for our fuel, undoing that linkage and spreading the tax cost around will provide some means of adjustment, you don't have that in the US to the same degree.
The issue is not that oil will run out, it is that the price will escalate to a level that will cause political upheaval. And the old tried and tested solution will be unwrapped, divert the publics attention, lets go grab 'our' oil.
Iraq is just a little skirmish, Saudi Arabia is being undermined from within, will the US let the Saudi reserves fall into the hands of terrorists?
