Peak oil

home-heating-oil

Peak oil is a term used to describe the time when oil demand is equal to or greater than available resource.

The implications to consumers, on a global scale, is a period of long term inflation.

The price of oil is a key driver to inflation and when oil is to close to reaching "peak" the price per barrel is likely to reach somewhere between $200 - $300 a barrel. Consumers will be paying at least twice as much for diesel and petrol and the same goes for heating oil and gas.

On the farm and at an industrial level there will be no escape pushing food and consumables up in price.

Analysts predict "peak oil" will happen before 2020 and some speculate it could happen as early as 2013. See http://www.google.co.uk/url?q=http://www.liveoilprices.co.uk/oil/oil_prices/07/2010/lloyds-peak-oil-report-supply-crunch-200-oil-in-2013.html&sa=U&ei=NmD_TKXfIsa2hAeByLW_Cw&ved=0CBQQFjAB&sig2=SfEwc-DYq1l9TjNk-yE2qg&usg=AFQjCNFHJ6PvYjtwxX9U9G-vdpoylBCXiw and/or http://www.energybulletin.net/stories/2010-09-30/oil-analyst-tells-forbes-peak-oil-2017

One things is for sure in 2011 the price of a barrel of oil will reach $100.

Obviously the government could relax the taxation on fuel but this would not be enough to maintain prices at a reasonable level. So what are the alternatives?

The only option we have, as consumers, is to change the way we do things. Buying local goods from local shops will ease the food distribution costs and forming community energy groups to generate electricity or to create / maintain a copse for firewood etc.

Longer term, and already under discussion, is to build more nuclear power stations which is less than ideal. So where do we go from here?

Pincher

CPR = Campaign for Population Reduction

Jon_Tiffany

As pincher says, look to the cause of the problem rather than treat the symptoms.

Population control is what is needed, but of course there are huge issues with implementing this, both in terms of what is ethical and practical.

Next best thing we can do is move away from our dependance on oil - reduce consumption, increase renewables and nuclear.

Be careful when buying local goods, in some cases they have a larger carbon footprint.

Firewood for heating is not a suitable for solution for the bulk of the population - not enough firewood and the pollution would cost lives.

home-heating-oil

New predictions suggesting £150 per barrel by summer 2011 "Live oil prices".. The government will need to lose some of the 64-66% taxation off the fuel price which will see more spending cuts. Inflation based recession that could last 15-20 years.. Not a pretty outlook.

Interestingly in 2008 the barrel cost reached $150 and the pump prices increased to £1.19 per litre so how did it get to £1.23 with an average oil price of $85 per barrel?