oil pique

best enjoy the cheap gas while you can, cuz it ain’t forever

Oil prices may not rise significantly in 2009, as economies deflate and weaken around the globe. However, temporary demand destruction does not hold even a small candle to permanent supply destruction. To add to the problem, exploration and production around the world is downsizing, as the dramatically lower oil prices make projects uneconomical. Looking at the current 9.1% estimate of global depletion, combined with shrinking levels of drilling and exploration, the medium term outlook is daunting. According to the IEA report, “There remains a real risk that underinvestment will cause an oil supply crunch. The gap now evident between what is being built and what is needed to keep pace with demand is set to widen sharply after 2010.”. . .

we can’t imagine (most of us anyway) oil or gas being scarce, because it never has been in our lifetime, here in north america most of all.


2 Responses to “oil pique”

  1. December 24, 2008 at 2:00 am

    Hi. I read a few of your other posts and wanted to know if you would be interested in exchanging blogroll links?

  2. 2 underpass
    January 14, 2009 at 11:30 pm

    sorry this took so long, wordpress’s comment manager is a bit too efficient sometimes.

    how do we do this blogroll thing?

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