Peak Oil Update

Dear Friend:

Originally written in 2005:

I have been taking a closer look at the "peak oil" or "oil crisis" thing over the past few weeks and I tend to lean towards the idea that there is going to be a real oil crisis in the near future. Take these facts into consideration...

  • Whether you believe oil is running out or whether the peak oil thing is a fabrication in order to raise prices... the fact is that oil prices ARE rising and will continue to rise in the future. This winter, home heating costs are projected to rise by 50%. And there has been a 80% increase in the price of natural gas in the past two months. And we all know about all the other increases in gas, diesel, kerosene, etc. Sooner or later these increases are going to trickle down the consumer goods and services supply chain and hit you hard right smack dab right in the pocket book!
  • Other countries are experiencing a peak oil crisis right now with shortages and high prices. If you look closely, the US is now seeing the first REAL signs of the problems to come. It's not just someone standing on a soap box and shouting it's going to happen. It's actually happening now.
  • The graph below shows exactly how dependent we are on oil...
peak oil
  • Every night on the national news, there is a story about peak oil and the rising price of some kind of fossil fuel. If it is on the news every night, you know it is real - right? At least most of it is real anyway! (Can you believe I actually thought some of the news was real back then? Boy... how things have changed!)
  • I was watching C-SPAN the other day, and a US Representative from Maryland, Roscoe Bartlett, was on there talking about peak oil and the coming oil crisis. Everything I mentioned in the September newsletter, he was saying right there on national television. This is an elected official in the US House of Representatives! He had a complete panel of experts to back him up too - like John Spears (President of the International Center for Sustainable Development), John Howe (President of Howe Energy Co), Donald Wulfinghoff (President of Wulfinghoff Energy Services), Dr. Kenneth Deffeyes, Richard Heinberg, and Matthew Simmons. Rep. Bartlett is a smart man too - he knew what he was talking about and could rattle off figures without even skipping a beat. 

Youtube videos of his speech...

The Saudis say they now have twice as much oil as previously thought which will alleviate the peak oil crisis. Not so fast!... even if it were true, most estimates say that it will only add 10 years to our supply. These reserves have not even been verified. And... some say that the oil that they are talking about is oil of a lower quality and thus more expensive to extract and refine. The high price of oil now makes that more expensive oil in the ground economical to produce and thus it gets moved to the "proven reserves" column. The point is... these new reserves are not going to lower the price at the pump any. If the price of oil were to drop, these new reserves would again become unrecoverable. This is exactly what happened in the late 70's and 80's in the US - the foreign oil was so cheap that a lot of the oil rigs in the US shut down because it was cheaper just to buy the cheap foreign oil.

So... what can you do about the approaching peak oil crisis?...

It's called sustainable living. Basically, you are going to have to provide for all of your own needs like shelter, electricity, water, food, transportation, clothing, health care, etc. When the oil runs out or gets too expensive to afford, then all these things will go bye-bye. If you can't provide for yourself, then you will be at the mercy of "others". The books in our bookstore will help you get through the tough times to come. And... they will save you a ton of money in the meantime. I've been helping people save money on electricity for 13+ years now with my book "Electricity - Make it, Don't Buy it".


Bill Anderson