Reply #18: Actually

[rustydad]

Hubbert predicted in the 1950s that the Continental USA would peak in the earily 1970s and it did in 1973. He also used the same math to predict that the world would peak earily in this century. We may be at peak now or soon. World Peak is different than a countries peak because oil is traded on the world market. As long as the world could extract more than the world demand countries beyond peak only had to pay the extra cost of shipping in oil, no big deal. But when world demand is greater than world supply then TSHTF. The cost will rise until the demand is brought into balance with supply. Those who can pay will pay, those who are priced out, are priced out.

This is called demand distruction. It can happen do to pure economics or because a country is destroyed by war or disease or other means. Our presence in Iraq does not mean we will harvest their oil and give it to gas guzzeling North Americans on the cheap. Far from that, oil companies never discount to anyone. What Araq does do for the bush boys is provide a military base from which we hope to influence the politics of the ME and prevent any disruptin of oil exports. And by controlling OPEC we can embargo any country that does not do our bidding. Think foriegn exchange. The USA needs the world to 'loan' us 2 billion +/- a day so we can have our toys and build our military. Most of this comes from Japan and China. Can they afford to do this forever? Or can they afford not to? Controlling the oil of the ME is to hold a huge hammer over the rest of the world, or so think Chenney and company. Bob