Welcome to the 'New Somerset and Dorset Railway'
Monday, February 20, 2012
another one falls ...
In general economists tend to dismiss Peak Oil (as a problem, not a theory) because they believe in infinite substitution of products. Of course this only works up to a point, in the end even substitutes (unless they are sustainable like wood or sunlight) will run out, and oil is a very special case anyway. Nothing matches the cheapness and easiness of oil, and never before has a global society been built on the base of a finite product that has been treated as infinite. This is where the real problems will occur, when everyone realises that. There isn't a substiture for oil, and so much - from fuel to plastics to fertilizers - depends on it.
Gradually even mainstream economists and commentators are beginning to get this, and I think the following statement (from today's Money Week on line) says it best of all.
Global oil production peaked in May 2005 and despite the higher price, this level of production has not been matched.
The fact that companies are now having to drill miles under the sea or in other undesirable locations, suggests that the easy–to–find ‘cheap’ stuff has long since been found. There may be something to this peak oil business after all.