Here comes the nutcracker: Peak oil in a nutshell

…the next tough oil shortage, even if it is not acknowledged as a post-peak oil extraction phenomenon of diminishing supply, will cripple the globalized economy. Understanding of both the economics and social dynamics of collapse is rare, and even when it is present there is an absence of taking into account the “market factor” in ushering in collapse.

Shell, Exxon tap expensive oil sands & gas, oil reserves dwindle.

Solid article detailing the higher costs of oil sands and industry pressures driving project investments. Includes as context many startling figures: “Shell, based in London and The Hague, reported Feb. 3 that reserves fell in 2004 because it found enough oil to replace just 15 percent to 25 percent of what the company pumped. BP replaced 89 percent of production, the company said Feb. 8”.

Why oil prices are barreling up

In the past week, oil prices have regained about US$3 a barrel after hitting a low of $45. Apart from the perennial US weather factor, positive sentiment was reinforced by IEA (International Energy Agency) data revising previous forecasts for world oil demand growth in 2005 by 80,000 barrels per day.