Insight and inspiration in turbulent times.
One hangover from the ultraliberal 1980s (during which the New Economy emerged from the wreck of ” Keynesian economics “) is the myth or pious belief in so-called ‘supply side solutions’. The myth itself, however, was built on the real world, realpolitik process of first destroying demand.
As oil prices rose, Russian President Vladimir Putin told President Bush on Monday that Russian oil companies are increasing oil production and exports and will continue to do so, the White House said.
The Association for the Study of Peak Oil feels that the current increase in crude oil prices is only a foretaste of worse to come.
To some geologists, the world is heading toward an oil crisis of historic proportions. The crisis will come, they say, not when the wells go dry, but when world oil production reaches a peak and begins to decline.
China’s dramatic increase in energy consumption – coupled with political problems in the oil-producing countries of Iraq, Russia and Venezuela – could have dramatic negative effects on the U.S. and world economies.
While world supply of conventional oil looks set to peak, hydrogen has long been proposed as a solution. But in spite of billions of dollars now being spent on research, no one has yet found a simple, safe and cheap way to produce it.
Economic growth equals increased demand, increased demand results in resources (such as oil and natural gas) being depleted at quicker rate.
The Government is considering lifting constraints on harmful emissions from coal-fired power plants in order to ensure energy supplies in a crisis.
Saudi Arabia’s output declined in July giving rise to new concerns that the country is struggling to increase output for technical reasons.
A common theory is the rising demand for oil and falling supply will spark further political instability and cause a global recession.
The short-term economic pain of sky-high oil prices is a harsh reminder to the world’s richest countries that they have never been able to kick their addiction to the sticky black stuff – and time is running out.
Authorities kept a main oil pipeline in southern Iraq shut on Sunday rather than risk it being attacked, restricting the country’s exports to half normal levels, a South Oil Official said.
