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IPFS News Link • Energy

The Great Oil Bubble has Burst (what did you think was going to happen?)

• New York Times
Actually the price of a barrel of crude has been falling: from a peak of $145 in early July, it came down to $117 and was trading yesterday at $120. That's almost a 20 per cent drop in little more than three weeks.

1 Comments in Response to

Comment by Ernest Hancock
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I am of the opinion that Peak Oil is all bullshit. I remember producing a radio show on Peak Oil and interviewing potential guests (big Peak Oil names) and I had one question I began asking them all,... "Who's dip stick are you using?"

The question that I had was very valid in my mind. I wanted to know where they were getting their information. If the Saudi Oil Fields are drying up, then how do you know? I'm sure there are ways of knowing, but who is providng the information?

Abiotic Oil is another favorite topic we had on the air in detail. The idea that oil is a byproduct of the heat and pressure inside our planet and that the old oil fields are filling up again is becoming more popular with increasing evidence.

Soooo, I am of the opinion that there has never been a shortage of oil and that every drop willing to be purchased has been made available. The "Oil Bubble" has been very profitable for the oil companies but have sparked a lot of alternative energy excitement. It may be that the alternative energies coming online has been behind the "make the money now" mentality of Big Oil. But I suspect that the real boom in alternative energy is the ability to get "off Grid" and that an entirely new trend towards rural living is about to take flight,... and Big Oil is not invited.

But I've seen this before. The late 70's and early 80's saw the start of alternative energies being heavily invested in only to have Oil prices plummet while the subsidies for fossil fuels increased (don't think trillions of dollars in military spending to protect our access to "cheap oil" isn't corporate welfare?)

The eventual shift to alternative energy is going to have several unseen factors propelling the interest. Not the least of which will be the ability to get away from all of the manipulation we are forced to suffer in our lives.