Posts Tagged ‘Oil’

A tasty excerpt from an illuminating analysis of


Peak Oil and Peak “Cheap Oil”  by Erik Townsend that I found at www.chrismartenson.com. A very credible argument that explains why oil might very well make it back to $200 a barrel but is not likely to go much higher as that is the price point where governments of oil producing nations are likely to begin nationalizing oil producing assets and controlling energy markets as a matter of national security…  It seems bad enough for oil… Haven’t seen anything yet about the coming water shortage crisis… And lets not forget that California is due to sink into the Pacific any day now… Do you believe now in the deadliness of the future?

The Excerpt:

Market force vs. Military force

One of the strongest arguments made by Peak Oil speculators is that prices will rise in large part because emerging economies (particularly China) are industrializing, radically growing their vehicle fleets, and generally likely to create enormous new demand for decades to come. On its face, this is a sound and well-reasoned argument and the fundamentals in those countries strongly support this conclusion. But this argument assumes that oil prices will continue to be set by a free-market supply and demand system. I think that a dangerous assumption.

I’m convinced that as Peak Cheap Oil arrives, a series of peak oil price shocks will cripple developed economies, including the United States. (more…)

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