Peak oil will have an adverse effect on all economies

[marmar]

from Nation Multimedia (Thailand):



The modern global economy has been built on cheap oil and its abundant availability. In spite of oil crises in the past, the world has so far survived unscathed. But what will happen to the world economy and to the Thai economy in particular in the aftermath of "peak oil"?

WikiLeaks cables, as reported widely on the wire services, indicate that Saudi Arabia might be reaching the peak of its oil production. This means that in the future oil supply will fall, while prices will rise continuously. The WikiLeaks cables detail a meeting between a US diplomat and Sadad al-Husseini, a geologist and former head of exploration for Saudi oil monopoly Aramco, in November 2007. Husseini said that the Saudis are unlikely to keep to their target oil output of 12.5 million barrels per day. Supply from Saudi Arabia has kept international oil prices stable. But Husseini also indicated that the Saudi producers are likely to hit peak oil - the point at which global output hits its high mark - as early as 2012.

"According to al-Husseini, the crux of the issue is twofold. First, it is possible that Saudi reserves are not as bountiful as sometimes described, and the timeline for their production not as unrestrained as Aramco and energy optimists would like to portray," says one cable.

"While al-Husseini fundamentally contradicts the Aramco company line, he is no doomsday theorist. His pedigree, experience and outlook demand that his predictions be thoughtfully considered." ...........(more)

The complete piece is at: http://www.nationmultimedia.com/2011/02/11/opinion/Peak-oil-will-have-an-adverse-effect-on-all-econom-30148420.html

[L0oniX]

1. No one here is going to care until it smacks them in the face and wallet.

Americans are behaving like lemmings.

http://journals.democraticunderground.com/L0oniX/1

[DCKit]

2. A real kick in the pants: Third-World countries will be far less impacted.

Barring continued droughts and flooding, those still plowing their fields with oxen and delivering goods and services on carts and bicycles will be laughing at U.S. for a change.