I have only just got to read that last week The Independent reported that the world is heading for a catastrophic energy crunch that could cripple a global economic recovery because most of the major oil fields in the world have passed their peak production.
Photo: from Russ - he says himself he's not sure about this one - however I like it - the pristine mountain and can of oil......
Dr Fatih Birol, the chief economist at the respected International Energy Agency (IEA) in Paris says that higher oil prices brought on by a rapid increase in demand and a stagnation, or even decline, in supply could blow any recovery off course. See Independent 3rd Aug 2009.
None of this is new news to those of us following the research into Peak Oil - but it is good to see it getting more coverage - in the same paper Jeremy Leggett writes that there is one major similarity between the energy crisis and the financial crisis and one main difference. He says these two things tell us a lot about the role of cultures in how our modern version of capitalism plays out. The similarity is that we are dealing with two massive global industries who have their asset assessment systemically, and roundly, wrong. The difference is that few people and organisations warned about the credit crunch as it approached, where as with the oil crunch, a host of people – many in and around the oil industry – are shouting a warning, and so to are a few good organisations concerned companies span British industry. See Independent 3rd Aug 2009.