Friday, April 25, 2008
Peak Oil News
It should not be a surprise to a reader of this blog to note signs of the arrival of global Peak Oil; nonetheless, today's news is particularly significant. First, our friend and seminal author Matthew Simmons has a new powerpoint-type presentation on the current situation. New and notable is Simmons' emphasis on the aging infrastructure of oil well equipment: apparently, it's all made of steel, and steel rusts. Go figure. Needs lots of money spent to rehabilitate said equipment...will it get done? Doubtful. Also interesting is Simmons' (almost obligatory) expressions of hope at the end. Chaos can find no reason or evidence that justifies such beliefs, but at any rate, this is a nice presentation (if you wonder about certain points, by all means search for expansion among the literature). Secondly, news of the day indicates that the Grangemouth refinery in Scotland, which supplies approximately 10% of the UK's oil needs, is closing as of now due to workers striking over pension benefits. The event is having major impacts, including lines for fuel, and hoarding behavior. A harbinger of things to come, in Chaos' view, and soon enough. Look for gasoline prices to head higher, and don't neglect converting the projected UK gas price of 5 pounds per gallon...makes gas in the US seem cheap, doesn't it?