If you don’t understand what is going on with the price of gasoline and demand for the world’s oil supply, then join the club.
While waiting to see how much damage this week’s hurricane will do, it is a good time to review recent developments in the world’s petroleum and economic situations for their relevance to peak oil.
As world oil production has never peaked before, there is no historical basis for making informed judgments as to what is going to happen.
The situation is not good. Our average gasoline price just climbed past $4 a gallon and all indications are that it will continue to rise. After Goldman-Sachs made headlines by telling us that oil is going to $150 or maybe $200 a barrel in six months or maybe two years, […]
The evidence is mounting that the U.S. might just encounter the first real crisis of the oil depletion age before the year is out.
It is conventional wisdom for most of the people following the peak oil story that we still have a few years to go before the real troubles begin. Some say 2011, others 2015 or later, but in general, among those calculating the depletion vs. new supply balance most have been […]
Earlier this week Hurricane Dean slammed into the Yucatan peninsula and crossed over into the Bay of Campeche where some 1.5 million of the 10 million barrels the U.S. imports every day are produced. While it is too early for a full damage assessment, at best a few days […]
Last weekend across southern South Dakota the pumps went dry. Gas terminals from Sioux Falls to Yankton to Sioux City were empty. “There is simply not enough fuel coming down the pipeline into the delivery system” said a BP station owner. Eventually the tankers were sent to Nebraska to find […]
There has been much discussion about gasoline inventories in the US lately and rightly so. Every Wednesday morning the Department of Energy releases a snapshot of US oil and product inventories at the end of the preceding week. As US gasoline inventories fell dramatically during the past few months, it […]
Across the world alarm bells are starting to clang. Above every gas station, a large sign is proclaiming that prices are on an unstoppable climb towards un-affordability. In Paris, the International Energy Agency has announced that the demand for oil is likely to exceed the supply later this year, unless, […]