Tuesday, January 15, 2008

Cheap Oil No More

"Matt Simmons ... lays out the case quite persuasively that global [oil] production peaked in 2005 at 74,298,000 barrels a day and now is a couple million below that, while daily consumption has continued to climb and is rapidly approaching 88 million barrels. To fill the gap, he reports, various sources are being tapped, all of which share one quality--they're not sustainable", Alan Abelson at Barron's, 7 January 2008.

I agree with Simmons, the era of cheap oil is over.

5 comments:

Independent Accountant said...

Andrew Cuomo in New York is concerned about the documentation problem, see my 8 and 10 December posts which mention Cuomo. Yves Smith at Naked Capitalism, link provided, has followed this situation and has a 12 January post about it.
I agree with you, this looks like the S&L mess redux. Another person following this is Fred Cederholm, a CPA who posts at Financial Sense, which I also link to.

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