As we wander through the maze of arguments around Peak Oil, some things look quite certain.
Fuel shortage in Katmandu
Gas shortage in UAE impacting cement companies
A multi-dimensional worldwide rice shortage
Rising wheat prices
The pursuit of ethanol may be contributing to the price increases of some crops
Poor countries are feeling the pain:
Inflation in Asia
The global economy is reacting to above-ground factors impacting energy, which are having consequences both in the energy sector itself and the food market. The plateau we are on won't last forever, we may be starting down the slope, however slowly. And it may only get worse a lot quicker than we expect if Philip Verleger is correct. (PDF Warning) He cites 6 reasons that oil prices are going to increase dramatically:
First, global economic growth would boost energy and particularly
oil use at near-record rates if supply were available.
Second, twenty years of underinvestment have created supply constraints that make it impossible to meet growing demand.
Third, spreading nationalism in countries holding the largest reserves of easily accessible oil and gas further worsen the supply problem.
Fourth, needed investment in private-sector capacity expansion is being discouraged by uncertainty created by efforts to reduce global warming gases.
Fifth, supply will be limited by conflicts in oil-exporting countries.
Finally, efforts to substitute away from hydrocarbons or to conserve will be hampered by the problem’s enormity. The stage is set for a period of very high energy prices.
But, not to worry, our erstwhile President wanna-be's have all been briefed on Peak Oil, not that they fully get the implications or have a coherent policy. Maybe we can get them to sign on to the Oil Independent Oakland Action Plan (PDF Warning), which will be presented next week to Oakland's Public Works Committee. Joe Moore, our Progressive Alderman, and his kindred independent spirits on the council should sign on to this instead of pursuing foie gras and Big Box bans. It seems to me that this ward, and this city, have more to worry about from rising energy costs than they do from farmers force feeding ducks and retailers that will find it difficult to continue heating the oversized warehouse stores.
How about it Joe?