Good point, Whiterook. I've read that the biggest oil field in the world, in Saudi Arabia, is nearing end of production; it's been configured for years now with a process that pumps water deep underground to force the last remains of oil higher up. When those types of fields collapse, it's usually suddenly. Most of the other major middle east oil exporting countries are also beyond peak capacity.

I was wondering last year, after hearing reports of record revenue by the oil companies, why they weren't reinvesting that money in drilling for new reserves. I think now the short answer is that there are no new reserves, at least nothing substantial enough to meet the world's growing demand. The only thing drilling can guarantee is a hole in the ground.

I've also read that there are two types of people in the oil business: "surveyors", who look at oil reserves as would a geologist; and "speculators", who look at oil reserves as does Wall Street - which is why you can't get a financial analyst to admit that we're up against a real problem; to do so would collapse the markets. When we read about 'estimated reserves' of oil in various fields, these figures are highly manipulated to ensure the oil company's stock price doesn't collapse, since the company's valuation is based on future reserves (i.e. their stock of inventory, if you will.)

Regarding energy and world politics, look at any geopolitical hot spot in the world and you will see an energy-hungry super power involved in either military intervention or covert action to ensure those energy reserves are available to the west. Central Africa is a prime example. Notice the voting irregularities that happened in Kenya last week? Hmm, could it be because of natural gas reserves?

The sober fact is that the world's energy demand is increasing, while known reserves are nearing end of life, with no substitutes in sight. It doesn't take a conspiracy theorist to understand the plight we're in.

~Joe

1998 VW Jetti TDI owner