Okay folks, here's the real story:

World wide CHEAP oil production is starting to PEAK. This simply means that supply RATES, not the SUPPLY ITSELF, can't keep up with DEMAND.

SUPPLIES are not going up. DEMAND IS going up, and SUPPLY RATE is not keeping up.

How to remedy this? There's not much you can do. China and India are increasing demand, and no one is increasing supply. Why isn't anyone increasing supply? There simply isn't more petrol to supply!

Dr. Hubbert predicted a Domestic Crude production peak for the USA in the seventies. He was right. He also predicted a world-wide peak right about now. I ask you, do you think he was right? Keep in mind that everyone agrees you can only see the peak after it has passed.

Don't forget the biggest problem is that Crude extraction must be THERMODYNAMICALLY profitable. That is, even if you have $1,000,000, if you want to extract a gallon of gasoline from the ground, if it will cost you (you have to burn) a gallon of gas or diesel to extract it, it's not worth it, no matter what the $$$.

Here's more on the subject:

http://www.peakoil.net/
http://www.peakoil.org/
http://energycrisis.org/
http://www.lifeaftertheoilcrash.net/


You may consider this earth-shaking. You may consider it bunk. Whatever you do, please consider it.

Nate