Peak Oil is the maximum rate at which we can pump oil out of rocks. World Peak Discovery was 1964. Peak in US production was 1970, North Sea 1999, Mexico 2004, Saudi Arabia 2005.
Peak Oil, Foreclosures and Food
|Peak Oil is the maximum rate at which we can pump oil out of rocks. World Peak Discovery was 1964. Peak in US production was 1970, North Sea 1999, Mexico 2004, Saudi Arabia 2005.|
|Peak Oil, Foreclosures and Food|
Peak Oil is the primary cause of the home foreclosure crisis.
Unlike the 1973 Oil Embargo where shortages hit everyone, with Peak Oil we are proverbial frogs in a pot of cool water placed on a fire. More and more people cannot afford escalating price of their commute, food and mortgage.
What is Peak Oil? Peak Oil is the maximum rate at which we can pump oil out of rocks. World Peak Discovery was 1964. Peak in US production was 1970, North Sea 1999, Mexico 2004, Saudi Arabia 2005.
Peak Oil was May 2005 when crude oil production stopped consistently growing; it peaked at 74.4 million barrels per day. There may be subsequent larger peaks, but steady growth of oil for a steadily growing economy is gone forever. Our economy will either decay or increase efficiencies.
Foreclosures, gas prices and food are visible risks. Foreclosures are expected to hit 2 million families in 2008. Gas prices are at $3.50 and will likely hit $4-5 gas this summer. Food prices are rising but fundamental food supply is at risk. In March Potash’s CEO warned of famine unless there are record harvests.
Food supply is fragile and brittle. A typical bag of groceries travels 1,500 miles, 97% powered by oil. Any disruption, a trucker strike, terrorist attack on a refinery, pipeline accident,, earthquake, hurricane, etc…, could shatter deliveries for longer than local food supplies will last. We can have a Bear Stearns in food.
Food risk was driven home to me when I was asked, “Of the 10 worst famines of the 20th Century, how many happened in Africa?” My answer was 8. The correct answer is zero. Despite the hardships in Africa, truly spectacular famines require an advance economy to create population over-shoot and government policy that erodes institutions and technology that sustain that economy. We have over-shoot, erosion and fundamental ecological changes with Peak Oil and Global Warming.
We face civilization killers. Through immediate local action we can become self-reliance, defeating these killers.
Time is limited but here are the steps I think might work:
The solution to Peak Oil is as simple as the consequences are grim; be self-reliant. We have an opportunity, we can change the lifeblood of our economy from oil to ingenuity.
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