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March 17, 2005

Peak Oil?

Despite record prices, it's tough to find new supplies of oil


The United States and Europe have repeated calls for producers to pump more oil. And the Bush administration finally scored a victory this week on its plans to expand domestic production when the Senate authorized drilling in the Arctic National Wildlife Refuge in Alaska.

But that will not be enough. Production in most regions outside of the Persian Gulf is declining or is being kept steady by billions of dollars in costly recuperation technology.

International oil companies, starved of potentially oil-rich regions to explore, are handing back huge amounts of cash to shareholders instead of drilling new fields.


The inflattion-adjusted high prices of 1981 were the effects of the oil cartel. This is supply and demand. Drilling in the Alaskan wildlife refuge is a band-aid.

Do you see any leadership on energy from either party?

Posted by rickheller at March 17, 2005 08:53 PM
Comments

At this point, I see energy as more of a point for mutual bashing than constructive leadership.

On the other hand, it's probably just as well, as right now the most constructive steps that can be taken is funding all sorts of R&D. That policy is being followed in bipartisan fashion, although with different patronage targets on top of the likely shots.

That could well change if/when oil prices rise or atmospheric research is clear enough to dictate clear action.

Posted by: Jon Kay at March 17, 2005 11:33 PM

Neither party has shown any leadership. Nor has anyone else (e.g., the media, private interest groups, etc.). Specifically, I haven't heard the term "energy conservation" since the 1970s. Where are the calls for us to conserve gas? Is anyone urging American consumers to reduce their consumption -- consumption of ALL products, every one of them influenced to some degree by the price of oil?

No. Instead our society continues to embrace and encourage unlimited consumption and a general mindset that bigger is better (cars, houses, airplanes). No one in the mainstream has asked Americans to understand our responsibility for the price of oil.

Posted by: Steven Brown at March 18, 2005 07:37 AM

Once upon a pre 9/11 time, the primary publicly expressed concern related to fossil fuels was environmental. But NOW it's clearly also an economic and national security issue.

So I'm disappointed that there has been so little movement towards encouraging conservation related to the biggest fuel comsuming activities. It's pretty hard to deny we Americans as a group have lost no sleep over driving bigger more powerful cars and filling our houses with more and more electronic toys.

I think a move to re-commit to increasing fleet fuel efficiency standards is overdue, even if it meant increased taxation on the least efficient vehicles. Let's face it, most of the people out there (not all, mind you) are driving hummers just because they can, and because they want to. I think under current circumstances there's substantial virtue in trying to shape policies that make people not want to...

Posted by: bk at March 18, 2005 01:47 PM
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