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Can the World Survive the Impending Oil Crisis?
Oil-Price.net ^ | 10/11/2010 | Tobias Vanderbruck

Posted on 10/12/2010 7:06:26 AM PDT by b4its2late

The alarm bells have started ringing as surveys indicate that oil will become increasingly scarce beyond 2030 at the present rate of consumption. And to imagine a world bereft of adequate oil is simply bewildering. Oil explorations are going on all over the world and there appears to be some small pockets of suspected oil reserves, but these constitute only a fraction of the quantum needed to offset the anticipated shortages.

The signs are ominous, and if appropriate remedial measures are not immediately put in place, it is almost a certainty that by the end of 2020 most nations around the world will have to make do with less and less oil. An energy war seems to have already begun and as the world's limited oil reserves are getting depleted, the warlike situation will further worsen in the foreseeable future.

Geo-political Equations

As per official reports published in 2005, the approximate oil reserves are - Saudi Arabia 24 percent, Canada 13 percent, Iraq and Iran 10 percent, each, Kuwait, United Arab Emirates, Russia 9 percent each, Venezuela 8 percent, Mexico, United States (excluding oil shale), Norway and Indonesia 5 percent each, Nigeria, Libya, China, Kazakhstan and Algeria 2 percent each.

Again a piquant situation might arise as the countries that are less friendly or hostile to the above oil-producing nations may seriously stand to lose. So the geo-political equations may start changing and more and more countries will start wooing the oil-producing nations and recast their foreign policies.

In such predicament all nations will have to toe the political ideology of the Arab nations or else face oil starvation. The United States and the other developed nations that form the G-8 group will cease to wield the power it now enjoys.

The military might of a nation will become inconsequential as military equipment, fighter planes and war machinery will be of no avail without fuel. It is only the oil-rich nations that will exercise hegemony.

The premature release of Lockerbie bomber from prison is a case in point. Libyan intelligence officer Abdel Basset al-Megrahi was the lone person sentenced to a jail term of 27 years for mid-air bombing of Pan Am flight 103 over Lockerbie, Scotland. Megrahi was set free in August, 2009 on compassionate grounds after medical reports confirmed he was suffering terminal prostate cancer - although he is still alive and living in Tripoli. The plain truth is, his release was a pre-requisite for British Petroleum to finalize an oil contract with the Libyan government.

Present Scenario

Economists predict that the "peak oil" will dramatically alter the fortunes of many developing countries. The term "peak oil" has been coined by oil experts to signify the point in time when the world's oil reserves will reach their peak production and the oil production thereafter will commence its downturn journey. This will mark the supply crisis -- and the resultant panic can trigger volatility in commodity markets as well as stock exchanges.

More and more oil-producing nations are rapidly nearing peak oil (maximum production) stage and the situation is indeed becoming grim. From thereon, oil production will steadily decline while the demand will constantly escalate. The gap between supply and demand will widen leading to soaring prices that most nations cannot afford.

Likely Repercussions

As is known, fertilizers and pesticides cannot be produced without oil and/or natural gas. Agriculture without tractors, fertilizers and pesticides will mean a drastic fall in the production of food grain and that will lead to serious food security problems.

All manufactured goods (whether made with or without the use of oil) will become prohibitively costly as the transportation costs, whatever the mode, will sky-rocket.

As consumers will not be able to pay higher prices for agricultural as well as industrial products, there will be economic stagnation. Employers will resort to layoffs and unemployment problem will become more acute and many people may lose their homes and hearth.

The situation can lead public outrage and civil wars in many nations and the crime rate will escalate and the one possible outcome will be derailing of democratically elected governments and imposition of martial law in many countries.

What Next?

It has to be understood that peak oil crisis does not merely signal the inadequacy of oil but more the social and economic malaise the world will be subjected to. The comity of world nations must devise ways to confront the dangerous situation and for this, every nation must wake up to the enormity of the problem and try to grapple with the grim realities.

Having first-hand knowledge of the ground realities is a basic pre-requisite for nations to chalk out meaningful solutions. It is learnt that some European nations including France, Germany and the United Kingdom have woken up to the imminent catastrophe and are secretly gearing up to face the situation.

Energy Alternatives

Technological innovations are the dire need of the hour for developing fuel energy alternatives. But one cannot lose sight of the current prices of oil, and the heavy investments already made in infrastructural facilities - like oil extraction, running of pipelines, oil refining, and oil distribution set-up.

America possesses the technology to harness solar energy. American solar energy would be economical as also renewable. For a startup, the initial hardware and other infrastructure has to be publicly subsidized.

Hydrogen can prove an excellent universal fuel to power automobiles, planes, trains, and ships. It can also heat residences and commercial buildings and generate electricity. A nation that succeeds in converting all power systems to run on hydrogen will cease to depend on oil. In fact, hydrogen can be synthesized from different sources of energy - that include nuclear, geothermal, biomass, wind and solar.

Scientists argue that the sole energy efficient source available is Nuclear, which can comfortably meet all requirements of the future. The biggest problem can be the safety issue. Otherwise, there can be no doubt that an investment in safe nuclear energy must be the right solution for all energy woes.

Conclusion

To sum up, it may be said that the answer to oil alternative is to be found in several other energy sources like solar energy, hydrogen storage, coal, carbon dioxide capture, synthetic fuels, the controversial ethanol and - last but high in priority list - nuclear power. If timely measures are not taken to defuse the oil crisis, the entire world will face increasing ideological pressures from Arab/Islamic oil-producing nations.

 



TOPICS: Business/Economy
KEYWORDS: energy; oil
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1 posted on 10/12/2010 7:06:29 AM PDT by b4its2late
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To: b4its2late

Big breakthrough recently in conversion of shale oil to gasoline in extremely economical and clean fashion....


2 posted on 10/12/2010 7:09:45 AM PDT by freebilly (No wonder the left has a boner for Obama. There's CIALIS in soCIALISt....)
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To: b4its2late

They said the same thing 35 years ago.


3 posted on 10/12/2010 7:10:18 AM PDT by Edgar3 (Don't THREAD on me!)
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To: b4its2late

This sounds like Jimmah Carter’s warning that there wouldn’t be any oil by 2000.
We’ll soon be converting our super-abundance of coal to oil and we will never run out. You’d think a writer on energy matters would keep up with the research.


4 posted on 10/12/2010 7:12:24 AM PDT by kittymyrib
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To: b4its2late
Shouldn't that read “Manufactured Oil Crisis”? Just sayin...
5 posted on 10/12/2010 7:12:38 AM PDT by No_Doll_i
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To: b4its2late
Liberals want to get away form crude oil permanently. They have no plan to replace it, they never think ahead. There is more than enough oil it is just that there is too much Government and they are crashing the oil industry. Obama closed Gulf drilling, Offshore drilling, and Colorado shale. They want to send $Billions to their muslem friends and get rid of U.S.
6 posted on 10/12/2010 7:12:42 AM PDT by mountainlion (concerned conservative.)
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To: mountainlion

There will be no “crisis.” If the government can be kept from picking winners and losers, the market will respond with higher prices which will spark development of replacement products.
It’s happened before and can happen again if we can get the meddlers out of the way.


7 posted on 10/12/2010 7:18:24 AM PDT by Eric in the Ozarks (Impeachment !)
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To: b4its2late

Back in 1989 I had to write a paper for an engineering class that touched on oil reserves. I found book after book after book in the university library declaring peak oil would have already been reached by the time I was reading them. How long do they have to be wrong before people get realistic about this stuff?


8 posted on 10/12/2010 7:19:39 AM PDT by Liberty1970 ("Religion is a substitute for the relationship God wants with you." - RoadTest)
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To: b4its2late
Ya know, I've been hearing the term, "oil crisis" since the 60's. It's the same trick Jimmy Carter tried and I've served my time in lines waiting to get gasoline at the local service station - when we could find one that wasn't "sold out".

All that "oil crisis" did was drive up the prices of petroleum products, and it did it in a hurry.

We've all read reports and news stories about the millions of barrels of oil still in the ground in Alaska and other states, not to mention offshore deposits - yet we still sit around crying "oil crisis" and buying it from our enemies, aka muslims.

America and the Constitution have not gone away in America - however, Common Sense seems to have taken leave to parts unknown.

The whole world buys oil from the middle east, but think what a dent it would make if America started producing her own. I mean, dear leader says that America uses an inordinate amount of the worlds' oil, so we would obviously make an inordinate dent in the Middle EAsts' riches. That's a good thing.

The President In Name Only (PINO) is pulling a groin muscle trying to outsource everything American...he's even working on the beef supply now. His drilling bans make sense only if you're wanting to join one of the "hate America" crowds and kill even more American jobs.

It's time for America to be self-sufficient again. Bring America's jobs back home, clean up the illegal immigration problem, and get government out of our daily lives. Let the nations' Dem crybabies sink or swim...we can't be Santa Claus and policeman for the whole world and it is NOT incumbent on Americans who work hard for a living to support the lazy rabble that won't work. They need to get out of the wagon and help pull for a change.

"Oil crisis"...such a convenient straw man for the likes of obama to prop new taxes and regulations upon. "Oil crisis" is the Tax man's "race card". They play it to scare the populace into numb acceptance of new taxes.

There is no "oil crisis" other than politicians using it as a battering ram to control the people.
9 posted on 10/12/2010 7:24:59 AM PDT by FrankR (You are only obligated to obama to the extent you accept his handouts.)
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To: Edgar3

I know.... And they’ll be saying it 35 years from now.


10 posted on 10/12/2010 7:25:30 AM PDT by b4its2late (Ignorance allows liberalism to prosper.)
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To: No_Doll_i

Yes. Agreed. But I didn’t have the heart to change it. ;-)


11 posted on 10/12/2010 7:26:21 AM PDT by b4its2late (Ignorance allows liberalism to prosper.)
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To: b4its2late

We need to go nuclear and natural gas and once stabilized we need to kick their ass and take their gas.


12 posted on 10/12/2010 7:26:56 AM PDT by ExpatGator (I hate Illinois Nazis!)
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To: Edgar3

You beat me to it.
Sounds just like the 70s, LOL.


13 posted on 10/12/2010 7:27:53 AM PDT by nascarnation
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To: mountainlion

Yes they do. Yet they fly around in private jets that burn more fuel per occupant in one flight than you or I could use in 3 years.


14 posted on 10/12/2010 7:28:02 AM PDT by b4its2late (Ignorance allows liberalism to prosper.)
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To: FrankR

You are dead on balls accurate with that post IMHO.


15 posted on 10/12/2010 7:29:12 AM PDT by b4its2late (Ignorance allows liberalism to prosper.)
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To: Liberty1970

Yep, just like global warming... A hoax.


16 posted on 10/12/2010 7:30:03 AM PDT by b4its2late (Ignorance allows liberalism to prosper.)
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To: b4its2late
geez
17 posted on 10/12/2010 7:30:57 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: b4its2late
What crisis? According to this: Texas university has eureka moment for coal-to-gas the supply will be endless and cheap.
18 posted on 10/12/2010 7:32:22 AM PDT by NonValueAdded ("It's amazing, A man who has such large ears could be so tone deaf" Rush Limbaugh 9/8/10)
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To: b4its2late

Geez, this sounds like the same tripe dished up when I was in college in the early 70s. They were citing how “unsafe” nuclear power was then, too. “China Syndrome” did for the nuclear industry what “Bambi” did for deer hunting.

I think the internal combustion engine has been one of the greatest contributions to personal freedom that mankind has ever known. From the days when I stuck a lawnmower engine on a home made go kart to present, some of my most joyous moments have been with a gasoline motor providing the power.

Of course, they have to go, according to these modern day Luddites. Want to go somewhere? Public transportation, bicycle, or walk. Want to fly? Leave it to the airlines and TSA. Water skiing? Power boating? Nope, possible water pollution too risky. Snowmobiles? Perish the thought! Too much of a Palin tie-in! Motorcycles? Too dangerous! No seatbelts, air bags, safety interlocks, and too much fun.

Nope, we can no longer have on demand, personal transportation for the masses. This should be rightly reserved for the elite. After all, they know what’s best.

For the rest of us.


19 posted on 10/12/2010 7:32:29 AM PDT by Tigerized (pursuingliberty.com)
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To: b4its2late
Two words:

Abiotic Oil.

'Nuff said.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

20 posted on 10/12/2010 7:32:43 AM PDT by The Comedian (Keep talking while I reload...)
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