Understanding the oil markets — 2010 Version

I’m starting to think that the oil markets in 2010 are just a more chaotic version of the markets as they were in 2007. You will recall that in 2007 oil the price was rising, demand was outstripping supply, OPEC said the markets were well-supplied, and would not raise output quotas and the Venezuelans were saying $100/barrel was a fair price for oil. Most of this has happened just in the past week.

WikiLeaks (energy and climate) – Dec 9

– Shell boasts it has infiltrated Nigerian government
– WikiLeaks climate change cables
– Wikileaks Reveals Hushed Concern Over Tar Sands Oil in US State Dept.
– Bolivian Ambassador Pablo Solón Responds to Secret U.S. Manipulation of Climate Talks
– WikiLeaks: oil deal executive ‘was paid £46,000 a month’

ODAC Newsletter – Dec 3

The Obama administration announced this week that it has reversed its decision to open up new leases in areas of the Eastern Gulf of Mexico and the Atlantic coast. The intention to lift the moratorium which had been in place since 2006 was made weeks before the Deepwater Horizon oil disaster. See the recent UKITPOES paper for more on the likely impact of the Gulf of Mexico disaster on oil production…

Truth Needn’t be Scary

A response to a response that Dmitry Orlov has also chimed in on. The immanent end of Western industrial civilization–the Industrial Growth Society–isn’t equivalent to collapse. I tend to think of collapse as something bad. Western civ is causing collapse in many areas, such as with the rampant biodiversity loss that’s breaking numerous links in the food chain, so I find it difficult to put it in the category of collapse.