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Is Peak Oil real?

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General interest discussions, not necessarily related to depletion.

Is Peak Oil real?

Postby raisinbran » Wed 02 Apr 2008, 20:46:12

Of course this question is moot for this forum.. "Of course it is! That's what this entire site is about!"

I also believed in peak oil. I've followed the story intensely for nearly a year... digesting nearly every bit of updates, new data, and chart analyses I can find. I know plenty about it and it is becoming more and more real as the price of oil is going up.

So why do I ask this question?

Let me propose another viewpoint, a viewpoint I rarely have ever seen considered in all of the peak oil material I have ever read. I want to know what you all think.


We know that the greater part of the financial system of this country is controlled by Wall Street, the Government, the Fed, etc. The bills we use to pay for everything is controlled.

Our gas, our cars, our food, much of what we live on, is also controlled, by a relatively few people like big oil companies and automakers.

But for some reason, very few people seem to understand that oil production, like all these other things, can also be controlled. Few would argue how extraordinarily important a resource oil is.

For example, if a few guys in Shell or Exxon wanted to deprive the entire country of its oil, all they have to do is simply cease their operations. The effects of such a move would be tremendous. The control of oil production has tremendous power. It's like a few guys can "pull the plug" on society any time they want to. They control it.

Yet, quite frankly, the entire idea behind peak oil is simply that oil production is beyond our control, beyond the government's, beyond saudi arabia's control, beyond the oil company's control. Furthermore, the entire idea of peak oil is predicated on the assumption that the U.S. government and many other countries always pump all the oil they ever find. Its as though the US government and all the oil companies simply pumped all the reserves everywhere, without giving thought to the idea that they could ever run out. And then, oops, years later they realized they pumped too much, and now they are screwed.

Now don't get me wrong, peak oil does make sense scientifically and geologically. Oil certainly does appear to be finite, and all the reasoning behind it makes it seem like, yes, the world will start declining in oil eventually.

But what I'm wondering is "Is that what is really happening?"
Certainly governments, companies, and people in control of things realized how much power controlling the oil can have. They can bring any country or any people to its knees easily by just depriving them of oil.

Back then, they probably also realized that if their own government ever ran out of oil, they would be at the mercy of other countries. For example, today the U.S. appears to be at the mercy of many other countries, even Mexico. Certainly, if mexico wanted to screw the U.S. today, all they would have to do is stop exporting oil. Saudi Arabia, Canada, etc. all could also if they wanted to.

Peak oil, the entire theory, suggests that people in office in the U.S. back in the 50's or so were dumb enough not to have foreseen that eventually the sovereignty of the U.S. would crumble because it would rely on other countries for oil when they just used up all of theirs.

While we don't know what the politicians were thinking, what I'm getting at is the entire theory somewhat plays down, or ignores altogether, the political influence that is exerted on oil production.
It's as though no politician, president, visionary, corporate executive, etc. only a humble geologist named Hubbert, ever considered the possibility that oil could run out and have devastating political consequences eventually. It's like nobody saw this disaster coming.

When power is the prize, the rules of the game seem to change completely.
Last edited by raisinbran on Fri 06 Jun 2008, 21:54:26, edited 1 time in total.
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Re: Is Peak Oil real?

Postby Cashmere » Wed 02 Apr 2008, 21:26:27

I agree with the possibility you've posed.

But, assuming it's possible, you'd have to supply the following - - -

Why?

Why stage the moon landings? National pride, demonstrable evidence that Capitalism is beating Communism . . .

Why run a false flag 911? Obtain grounds for unlimited war.

Why mislead the public about the state of the economy? Keep the game going longer.

Why withhold oil and drive the world economy into the ground?
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Re: Is Peak Oil real?

Postby mos6507 » Wed 02 Apr 2008, 21:37:15

Here is your answer to everything:

Image

;)
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Re: Is Peak Oil real?

Postby Schadenfreude » Wed 02 Apr 2008, 21:45:55

A market like oil cannot be controlled without the cooperation of producers and consumers alike.

OPEC was formed to control the oil market. How well did OPEC do? At best, they were able to keep prices somewhat stable, avoiding the pronounced swings that oil is subject to. But even in that, they were not always successful.

If you assert that the ability of powerful interests can thwart the basic laws of supply and demand in the biggest market on Planet Earth for an extended period of time, then you have shown all of modern economics to be a fraud. And while economics may not be a popular subject here on PO.com, it is most assuredly NOT a fraud. Human beings actually do obey the Law of Supply and Demand in their daily actions of buying and selling goods.
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Re: Is Peak Oil real?

Postby TheDude » Wed 02 Apr 2008, 22:03:21

What's the ring say mos6507? "Hugs and kisses, Bandar"?

Image

Image

:lol:

Image
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Re: Is Peak Oil real?

Postby greenworm » Wed 02 Apr 2008, 22:41:36

Funny how this thread makes it down to the open discussion viewing area. :lol:
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Re: Is Peak Oil real?

Postby Tyler_JC » Wed 02 Apr 2008, 22:41:41

Please stop drinking the conspiracy kool-aid, it's not good for your mental stability.

Don't you think that the world's 10 trillion dollar energy market is a little too complicated to be manipulated by a few masters of the universe in Washington?

I understand that some people feel the need to create a God to explain the complicated world around them but this one is a little much.

Think about this from a game theory prospective.

The energy market is a classic prisoner's dilemma, the temptation to defect is simply too great for everyone to fall in line.

If ONE country or company breaks the rules and overproduces, and the result would be unbelievably profitably for the producer, the ENTIRE system collapses.

Which is more likely? That the entire world is just a collection of people attempting to maximize their happiness or that the entire world is full of weak people who obey an overlord that neither I nor anyone else has ever heard of. :roll:

Again, I'm begging you, take a break from the internet.
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Re: Is Peak Oil real?

Postby BigTex » Wed 02 Apr 2008, 23:45:12

$this->bbcode_second_pass_quote('raisinbran', 'L')et me propose another viewpoint, a viewpoint I rarely have ever seen considered in all of the peak oil material I have ever read. I want to know what you all think.

Suppose, for a minute, that much of what we see in this world is controlled. Of course we know the media is controlled, few would argue against corporate media, influencing the kind of message that we hear, for example, "War on Terror."


It is controlled, but not in the way you are thinking. It is controlled by the profit motive, and people happen to like stupid shallow programming that reinforces their fantasies about the nature of reality. Thus, that's what they get. No surprise there.

$this->bbcode_second_pass_quote('', 'W')e know that the greater part of the financial system of this country is controlled by Wall Street, the Government, the Fed, etc. The bills we use to pay for everything is controlled.


Sort of, but actually I think that what we are currently witnessing shows that Wall Street, the Government and the Fed are not nearly as in control as they would like to be. If they were truly in control, the markets wouldn't drop every time Bernanke opened his mouth.

$this->bbcode_second_pass_quote('', 'O')ur gas, our cars, our food, much of what we live on, is also controlled, by a relatively few people like big oil companies and automakers.


The U.S. energy and auto industry, along with their shareholders and employees, is not "relatively few people." That's a LOT of people.

$this->bbcode_second_pass_quote('', 'B')ut for some reason, very few people seem to understand that oil production, like all these other things, can also be controlled. Few would argue how extraordinarily important a resource oil is.


Most peoples' frame of reference is the 1970s, where there was an attempt to control oil production for the purpose of inflicting economic punishment on the West for political misdeeds. Those who were alive in the 1970s both understand that oil production can be subject to attempts at control, and also how extraordinarily important oil is. What they don't understand is the distinction between the forces at work then (political) and the forces at work now (ecological).

$this->bbcode_second_pass_quote('', 'F')or example, if a few guys in Shell or Exxon wanted to deprive the entire country of its oil, all they have to do is simply cease their operations. The effects of such a move would be tremendous. The control of oil production has tremendous power. It's like a few guys can "pull the plug" on society any time they want to. They control it.


Here is where your argument veers off track a bit. Shell and Exxon control a small amount of world oil production. If they stopped production, the price of oil might jump, but not like company shareholders would jump at Shell and Exxon executives' throats to find out why they were doing something so stupid (especially since it would appear they were missing out on HUGE profits because of the price spike that might follow their mini-embargo).

$this->bbcode_second_pass_quote('', 'Y')et, quite frankly, the entire idea behind peak oil is simply that oil production is beyond our control, beyond the government's, beyond saudi arabia's control, beyond the oil company's control. Furthermore, the entire idea of peak oil is predicated on the assumption that the U.S. government and many other countries always pump all the oil they ever find. Its as though the US government and all the oil companies simply pumped all the reserves everywhere, without giving thought to the idea that they could ever run out. And then, oops, years later they realized they pumped too much, and now they are screwed.


Peak oil is not about oil production being beyond our control. Peak oil is about the idea that a point will come where production will cease to increase. It really doesn't matter whether it is or is not beyond anyone's control.

$this->bbcode_second_pass_quote('', 'N')ow don't get me wrong, peak oil does make sense scientifically and geologically. Oil certainly does appear to be finite, and all the reasoning behind it makes it seem like, yes, the world will start declining in oil eventually.


Oil is finite. Like many things we extract from the earth and consume.

$this->bbcode_second_pass_quote('', 'B')ut what I'm wondering is "Is that what is really happening?"
Certainly governments, companies, and people in control of things realized how much power controlling the oil can have. They can bring any country or any people to its knees easily by just depriving them of oil.


That is true, and that is what OPEC did in the 1970s. In the wake of that action, however, unanticipated things happened. Energy efficiency increased dramatically, and there was a stampede to pump as much oil as possible, which ultimately caused the price of oil to crash. I think that the 1970s experience taught many OPEC members that oil embargoes might not be the political tool they thought.

The thing that usually keeps a long term embargo from working is it's hard to keep members from cheating when prices begin to go up. When greed is the counter-force to a conspiracy, I pick greed to win every time.

Given the recent propensity of the U.S. government to attack countries with oil that resist our will, I am skeptical about a non-U.S. conspiracy. Actually, the country we probably have the least control over is Russiaa and they are pumping like crazy to get a big enough bank to re-arm and get a new cold war going. You might call that the "Putin-swinging-his-nutsack" problem.

$this->bbcode_second_pass_quote('', 'B')ack then, they probably also realized that if their own government ever ran out of oil, they would be at the mercy of other countries. For example, today the U.S. appears to be at the mercy of many other countries, even Mexico. Certainly, if mexico wanted to screw the U.S. today, all they would have to do is stop exporting oil. Saudi Arabia, Canada, etc. all could also if they wanted to.

If Mexico wanted to screw us, they would stop exporting Mexicans, not oil. We can get oil other places, we can't get Mexicans from anywhere except Mexico. Why would Canada forego the revenue they get from selling oil to the U.S.? Same for Saudi Arabia (especially since that dictatorship would have been toppled long ago without U.S. muscle to maintain it).

$this->bbcode_second_pass_quote('', 'P')eak oil, the entire theory, suggests that people in office in the U.S. back in the 50's or so were dumb enough not to have foreseen that eventually the sovereignty of the U.S. would crumble because it would rely on other countries for oil when they just used up all of theirs.

Energy independence doesn't mean anything to a net oil exporter, which we were through 1970 or so. Once you begin importing oil, there's no problem when you've got good buddies like Iran and Saudi Arabia selling you all you want (through the early 1970s, anyway).

$this->bbcode_second_pass_quote('', 'W')hile we don't know what the politicians were thinking, what I'm getting at is the entire theory somewhat plays down, or ignores altogether, the political influence that is exerted on oil production.
It's as though no politician, president, visionary, corporate executive, etc. only a humble geologist named Hubbert, ever considered the possibility that oil could run out and have devastating political consequences eventually. It's like nobody saw this disaster coming.

It's called a blind spot, and we have a large one in what we refer to as our rational minds. We worship the secular deity called exponential economic growth. This deity will bless us with endless prosperity and will make room for all the new human beings we want to make.

Read "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay if you doubt that smart people can make incredibly stupid decisions on a large scale and for long periods of time.

$this->bbcode_second_pass_quote('', 'F')urthermore, why do we always assume that the government has little influence on controlling our oil today? We seem to always assume that the U.S. uses every drop it can get its hands on and releases it to the public, because "they're desperate".

I'm not sure what this means. The U.S. is like a late-stage alcoholic when it comes to oil, except rather than stumbling down to the liquor store before closing time, we drive our aircraft carriers to the weakest oil producer in the world and announce we are there to protect them and their oil so that it will be safe for our consumption. The chief drunk is Dick Cheney, who tells us our way of life is non-negotiable. His retarded sidekick agrees with him and continues chasing the "evildoers" who hate us because we are free. The clusterfuck is much broader than you may realize.

But the U.S. government has plenty of influence on oil production, though I'm sure they would like to have more (I'm picturing Dick Cheney declaring a "War on Peak Oil").

$this->bbcode_second_pass_quote('', 'B')y the way, what sources do we actually use as data and numbers to back up the idea of peak oil? Usually sources released by the IEA or EIA, which are government sources. How do we know they are always accurate, and not fabricated?

We don't know they're not fabricated. But why would they be fabricated? Who would benefit from that? Who could pull that off? What would be the purpose of an elaborate reporting hoax whose only effect would be to destroy the economies that are the lifeblood of the oil exporters in the first place? Further, if there actually were plenty of oil and it was miraculously being withheld from the market, I PROMISE you that someone would cheat, and probably cheat in a big way.

It's sort of like I'm not certain that my whole world isn't just a "Truman Show" style hoax, but I'm pretty sure it's not, and I am comfortable working from that assumption.

$this->bbcode_second_pass_quote('', 'W')hen power is the prize, the rules of the game seem to change completely.

The pursuit of power is the only purpose of the rules in the first place. They don't change in that setting; they were designed for that setting.

Welcome to peakoil.com. :)
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Re: Is Peak Oil real?

Postby Alcassin » Wed 02 Apr 2008, 23:49:41

Peak Oil is uploaded to current version of matrix :) :P
Peak oil is only an indication and a premise of limits to growth on a finite planet.
Denial is the most predictable of all human responses.
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Re: Is Peak Oil real?

Postby Plantagenet » Thu 03 Apr 2008, 00:10:50

$this->bbcode_second_pass_quote('raisinbran', ' ') It's as though no politician, president, visionary, corporate executive, etc. only a humble geologist named Hubbert, ever considered the possibility that oil could run out and have devastating political consequences eventually. It's like nobody saw this disaster coming.


Hubbert was not a "humble geologist." He was a brilliant and very famous scientist. He saw this disaster coming, and he laid out the mathematical principles that described the phenomona 60 years ago.

The politicians still don't seem to get it. The Congress just staged a dog and pony show on capitol hill so they could go on TV and blast the oil companies over the price of oil, demanding the oil companies produce more oil at lower prices on the one hand while the locking up the best oil producing areas in America withthe other hand.
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Re: Is Peak Oil real?

Postby Tyler_JC » Thu 03 Apr 2008, 00:54:46

Politicians get it. They just don't know what to do about it.

[shameless plug] At the Tufts University Alternative Energy Conference last Saturday I got the chance to talk about peak oil with a congressman from Connecticut. He says that in earlier sessions, his colleagues did not think about energy issues as one of their top 5 issues. That's changed with $100 oil.

Now it's one of the leading sources of emails from constituents. People are calling up their representatives and demanding solutions.

As such, committees are sprouting up like dandelions to come up with some kind of solution.

They are getting mountains of advice. Some of it is good advice, some of it sucks. Some of it comes from solar power companies, some of it comes from environmentalists, and some of it comes from lobbyists from the Clean Coal Industry. :roll:

They aren't scientists, they are civil servants. It takes them a while to separate the wheat from the chaff. I'm confident that given enough time, they will be able to find the appropriate solution.

Unfortunately, we don't have 500 years...

On the other hand, we don't really need their support, we just need them to get out of the fucking way while private industry solves this.

The LEED headquarters in California has a world class water purification system that converts gray water into usable drinking water...and the city of Santa Monica won't let them turn it on.

I wish the government was incompetent. It's worse than incompetent, it's a brick wall.

Thankfully, that wall is starting to come down.
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Re: Is Peak Oil real?

Postby PenultimateManStanding » Thu 03 Apr 2008, 02:36:13

$this->bbcode_second_pass_quote('Tyler_JC', 'P')oliticians get it. They just don't know what to do about it. ..



As such, committees are sprouting up like dandelions to come up with some kind of solution. ..



I'm confident that given enough time, they will be able to find the appropriate solution.

Unfortunately, we don't have 500 years...

On the other hand, we don't really need their support, we just need them to get out of the fucking way while private industry solves this.
THERE IS NO SOLUTION. Government can't solve it. Private Industry can't solve it. Powerdown is inevitable. Its just a matter of how bloody and miserable it will be. Truckers are already hitting the financial wall at 4 dollar diesel. They are protesting and striking . Wait 'till 5 dollar diesel, then 6, 7, 8, etc. Problems are sprouting like mushrooms everywhere and it will just keep getting worse.
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Re: Is Peak Oil real?

Postby mos6507 » Thu 03 Apr 2008, 05:53:55

$this->bbcode_second_pass_quote('BigTex', '
')If Mexico wanted to screw us, they would stop exporting Mexicans


There are more than enough here already, especially when you consider the next generations of pending overshoot.

$this->bbcode_second_pass_quote('BigTex', '
')It's sort of like I'm not certain that my whole world isn't just a "Truman Show" style hoax, but I'm pretty sure it's not, and I am comfortable working from that assumption.


That makes you a minority on this forum.
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Re: Is Peak Oil real?

Postby Narz » Thu 03 Apr 2008, 06:57:44

$this->bbcode_second_pass_quote('Tyler_JC', 'D')on't you think that the world's 10 trillion dollar energy market is a little too complicated to be manipulated by a few masters of the universe in Washington?

Masters of the universe! :lol:

Good thread here. I tend to believe there is more government control over things than the average free market fanboy believes but not nearly as much as the average conspiracy nut believes. Peak oil is like gravity, you can fight it but you can't beat it permanently. Well, the only way to permanently beat it would be with a stronger force, like magnetism.

The real question is, what will that new force be (for some the assumption is that it will be nothing & we'll all die horribly except for a few diehards with 16 years worth of Uncle Ben's stashed away in which case we wait for the dust to clear & then colonize the Brave New World of empty condos and tumbleweed & plastic bags eriely blowing in the wind) and will we be able to implement it in time to avoid mass pain & suffering.
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Re: Is Peak Oil real?

Postby Tyler_JC » Thu 03 Apr 2008, 16:58:50

$this->bbcode_second_pass_quote('Narz', '')$this->bbcode_second_pass_quote('Tyler_JC', 'D')on't you think that the world's 10 trillion dollar energy market is a little too complicated to be manipulated by a few masters of the universe in Washington?

Masters of the universe! :lol:

Good thread here. I tend to believe there is more government control over things than the average free market fanboy believes but not nearly as much as the average conspiracy nut believes. Peak oil is like gravity, you can fight it but you can't beat it permanently. Well, the only way to permanently beat it would be with a stronger force, like magnetism.

The real question is, what will that new force be (for some the assumption is that it will be nothing & we'll all die horribly except for a few diehards with 16 years worth of Uncle Ben's stashed away in which case we wait for the dust to clear & then colonize the Brave New World of empty condos and tumbleweed & plastic bags eriely blowing in the wind) and will we be able to implement it in time to avoid mass pain & suffering.


I wonder how many of the hard core doomers have ever actually talked to people in the energy industry about Peak Oil and its related consequence.

Researching stuff posted on internet blogs by unaccountable loonies is entertaining but it pales in comparison to first hand knowledge.

I happen to think energy technology and policy is interesting. That's why I'm on this forum. It's also the reason that I spend so much time seeking out energy conferences. I'm lucky to live in an area that sees a lot of green tech conferences pass through from time to time.

I'd be more than happy to put anyone in touch with some of these industry folks if they'd like to learn more about these technologies.

The MIT energy conference is coming up on April 11th and 12th and if I can make it, I'll be sure to make a thread about it. There is a free preview for the public on Friday, April 11th from 5-8pm. I hope that all Boston Area Peak Oilers will attend. Maybe we can get a chance to ask real questions and get real answers from people who know what the heck they are talking about.

8)

http://www.mitenergyconference.com/
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Re: Is Peak Oil real?

Postby PenultimateManStanding » Thu 03 Apr 2008, 18:43:46

$this->bbcode_second_pass_quote('Tyler_JC', ' ')
Researching stuff posted on internet blogs by unaccountable loonies is entertaining but it pales in comparison to first hand knowledge.
This in inexplicable. The list of credible reports and credible information is quite long and the implications are clearly very deadly serious. To characterize "hard core doomers" as "researching stuff posted by . . .unaccountable loonies" can be countered with "first hand knowledge" obtained from "in the field" polyannas who, as Matthew Simmons put it, don't read books. So no Tyler, talking to some shill with rose colored glasses at a conference pales in comparison to simply following the news and connecting the dots.
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Re: Is Peak Oil real?

Postby BigTex » Thu 03 Apr 2008, 19:34:05

$this->bbcode_second_pass_quote('PenultimateManStanding', '')$this->bbcode_second_pass_quote('Tyler_JC', ' ')
Researching stuff posted on internet blogs by unaccountable loonies is entertaining but it pales in comparison to first hand knowledge.
This in inexplicable. The list of credible reports and credible information is quite long and the implications are clearly very deadly serious. To characterize "hard core doomers" as "researching stuff posted by . . .unaccountable loonies" can be countered with "first hand knowledge" obtained from "in the field" polyannas who, as Matthew Simmons put it, don't read books. So no Tyler, talking to some shill with rose colored glasses at a conference pales in comparison to simply following the news and connecting the dots.


Economic system premised upon unending exponential growth + World of finite resources = Big Problem.

Not necessarily a problem today, but it is a fundamental and structural problem with industrial civilization that is inherent in its design.

That's not some screwball internet conspiracy theory.

I just fail to see how ANY energy technology that is LESS efficient than fossil fuels is going to do anything except accelerate the date where fantasy and reality begin to experience friction.

Tyler, are you a cornie? (it's okay if you are, it's just not clear whether you are saying that a techno-fix is the solution or if a techno-fix just buys a little more time to live large).

Looking at the issue from a completely different angle, I think the alternative energy technologies are very interesting, and I think we are likely to see some wonderful examples of human ingenuity in coming decades. I don't mean to discount the sincerity and novelty of these efforts.

It just strikes me a little like a lemonade stand sitting in front of a million dollar home. It's charming, it's entrepreneurial, it's something for the kids to do, but the lemonade stand will never provide enough income or profit to support the house in front of which it is sitting.

And if we assume that peak oil represents the lemons and the lemonade stand represents industrial civilization, then the kids running the stand might not even have the opportunity to build a lemonade stand empire that WOULD support their parents' house because there simply aren't enough lemons to do it with.
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Re: Is Peak Oil real?

Postby PenultimateManStanding » Thu 03 Apr 2008, 20:35:51

$this->bbcode_second_pass_quote('BigTex', '
')Not necessarily a problem today
I don't know about that, the list of current problems grows longer week by week: bankrupt truckers, bankrupt airlines, insolvent financial system already breaking down, food riots, export restrictions announced in rice producing countries, etc. This is stuff that was only a prediction a couple years ago, now it is reality. My doom-o-meter was idling last year at this time, it's reading high alert now. Added 200 pounds rice today to the pantry.
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Re: Is Peak Oil real?

Postby Narz » Thu 03 Apr 2008, 20:50:31

Tex, what's a "cornie"?

$this->bbcode_second_pass_quote('PenultimateManStanding', '')$this->bbcode_second_pass_quote('BigTex', '
')Not necessarily a problem today
Added 200 pounds rice today to the pantry.

What about water PMS? What kind of water storage system do you have? As you've already considered I'm sure, not only do you need water for drinking & bathing but also, to prefer most of the food. And how about waste disposal? How will you be able to get rid of your waste (human and otherwise) without alerting your neighbors as to your stash?
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