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Page added on July 24, 2010

US President’s own peak oil comment should cause alarm

Shortly after being sworn in, the current US President commented on what many would believe to be a peak oil warning alarm bell for the US and the world.

“Oil is a finite resource… We consume more than 20 percent of the world’s oil, but have less than 2 percent of the world’s oil reserves. And that’s part of the reason oil companies are drilling a mile beneath the surface of the ocean: because we’re running out of places to drill on land and in shallow water.”

Anyone with any doubt that cheap, easily found crude oil is still out there is delusional and if there’s still cheap, easy oil to be had then why would BP be drilling in miles deep water?

The US alone consumes nearly 20 million barrels of oil each day, more than China, Japan, Russia, Germany, and India combined.

The recent BP Gulf oil spill, which could be accompanied by a disastrous ban on offshore drilling, will only make the oil production shortfall worse.

What Obama and BP won’t tell you is that the BP oil spill could also send us into a double dip recession, if only from the foreclosure rates the Gulf region is now seeing.

Even British insurer Lloyd’s believes in peak oil. In a new report, the firm discusses how “soaring demand combined with environmental and technological constraints could bring the planet to peak oil like circumstances long before the amount of recoverable oil actually peaks.”

Lloyd’s warns “a lack of investment in new oil wells exacerbated by environmental concerns raised by the Gulf oil spill, combined with accelerating demand from emerging economies China and India could shove the price of a barrel of oil over $200 by 2013.”

With the US BP Gulf oil disaster, peak oil is either imminent or has already arrived.