Much has been made of rising oil prices.
Some experts believe the coming holiday season is the justification for barrel prices spiking above $75 for the first time in a year. More drivers than anticipated will take to the road and more gasoline will be bought.
World is close to 85 percent of peak oil production, the car company forecasts
Other investors argue the prospect of stronger industrial demand in an improving global economy makes oil is undervalued.
Whatever the explanation, and whatever the price jump, prepare for oil to go higher over the long haul. That should set the stage for a boon in alternative energies.
The worldwide peak in oil production is on the horizon and relative scarcity is inevitable. No one knows when the peak will be reached – but its arrival in 10 or 20 years will do more than raise prices. It will lift the demand for alternative energy technologies more rapidly than government subsidies being doled out today.
At GM, forecasters believe the world is near 85 percent of peak production, says Byron Shaw, managing director at the company’s advanced technology office in Silicon Valley. Over the long haul, the company anticipates oil prices will stabilize near $130 a barrel, Shaw said this week at a meeting of the German American Business Association.
If so, it will change the market dynamics for solar, wind, biofuel and other new-gen energies in a hurry. It seems clear that with large-scale plants expected to take up to 10 years to develop the world needs to pick up the pace today.
I understand that peak oil is accurate and that we are now past the point of peak oil. I understand many of the current events have to do with this fact and it won’t be long before the main stream media and population wake up and understand what is going on. For me and my family, we are preparing for the next era.
We might be past peak oil. But probably not yet. That said, we will reach peak oil sooner than we will be ready for it. I’ve seen estimates that it is 10 years away. When it arrives it will bring a lot of fear and uncertainty