Bleak News from the Oil Zone

 Skrevet av Kate Incontrera - Publisert 01.11.2007 kl. 00:46

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"Be afraid…be very afraid," warned Byron King.

Last week, our intrepid correspondent hit the Association for the Study of Peak Oil (ASPO) convention in Houston…and he reports that, unsurprisingly, the news was pretty bleak.

{ad align='right' size='250'}"Slide after slide, chart after chart, speaker after speaker told the tale of the world's oil fields peaking in output and, in due course, going into irreversible decline. From the North Slope to the North Sea, Saudi Arabia to Siberia, Canada to China, Iran to Indonesia, output of oil greatly exceeds new discovery. Many of the world's largest oil fields and provinces, such as Saudi Arabia's Ghawar, Kuwait's Burgan, Russia's Romashkino, Mexico's Cantarell and others, are decades old, with no real replacements anywhere on any horizon," he tells us.

Legendary oilman T. Boone Pickens was at the conference and on top of saying that world oil production peaked last year, he commented, "I think we are going to see $100 oil before we ever see $80 again. There might be a recession that would pull the price back to $80, but we'll see $100 first."

"Someone asked Mr. Pickens if there is some way to control demand for oil," continued Byron. "He replied, 'The only way to kill demand is with prices. Much higher prices. Looking ahead, higher prices will allocate the available supplies.'"

As the price of crude goes through the roof, interest in alternative energy (other than ethanol) is getting stronger.

Kate "Short Fuse" Incontrera
The Daily Reckoning


Kate "Short Fuse" Incontrera is the managing editor of The Daily Reckoning. Each Saturday, she also brings you The Daily Reckoning's Views From The Fuse, a weekly wrap-up of contrarian insights and ideas.

Kate studied literary theory and writing at Towson University and the University of Cambridge. After receiving her degree in English, Kate joined The Daily Reckoning team in 2004.

Copyright © 2007 Kate Incontrera

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