I just started a new book, American Theocracy by Kevin Philips. It is about how politics, religion, oil and borrowed money have put this country in its current predicament. I had previously read Bad Money which was written in 2006/2007 and predicted the financial collapse. A true test of an author is when they see what is coming. Anyone can write about what happened and explain it after the fact. Philips was a tried and true Republican that finally got sick of the lies and bowing down to Wall Street and Big oil. His point of view is refreshing. Here is a one paragraph explanation of Peak Oil. Even a moron should get it. But, somehow the MSM, politicians, intellectuals, and the average citizen either don’t get it or don’t want to get it.
“A short explanation of the “peak” concept is in order. Geologists define it as the point at which at least half of a field’s reachable oil has been extracted. After this stage, getting each barrel out requires more pressure, more expense, or both. Output shrinks accordingly. After a while, despite nominal reserves that may be considerable, more energy is required to find and extract a barrel of oil than the barrel itself contains. By then, production becomes uneconomic – at least until the price of oil rises or the cost of extraction drops.”
Is that clear enough? Peak oil does not mean we have run out of oil. Half the oil in the earth is still there. All the easy to obtain oil has been extracted. Why do you think BP was drilling in one mile deep ocean? When you hear someone say that the US has hundreds of billion of barrels of oil in the Bakken Shale, don’t believe it. Most of it can not be extracted. It will only be economical to extract it at a $200 per barrel. At $200 per barrel, our way of life comes to a grinding halt. It is just over the horizon and we just go on like nothing will happen.
This is bigger than Social Security, Medicare, and deficits because it will affect us by 2015. It is depressing to watch the ineptitude, myopia and stupidity of our leaders and the disinterest of our population. We’ll get what we deserve.