Daniel Yergin Day, July 13, 2006

SAN FRANCISCO (MarketWatch) — The front-month futures contract climbed past $76 a barrel Thursday for the first time ever on the New York Mercantile Exchange, with August crude touching $76.30 and last trading at $76.21, up $1.26.

In regard to efforts to deny the reality of Peak Oil, I have previously described what I call the “Iron Triangle,” which I define as: (1) most auto, housing and finance companies; (2) most of the mainstream media and (3) most major oil companies, major oil exporters and the energy analysts that work for the major oil companies and major oil exporters.

In my opinion, the Iron Triangle has a vested interest in denying the reality of Peak Oil, and they are, in effect, working together to encourage Americans to continue buying large vehicles, in order to continue driving large distances to and from large mortgages.

My reasoning is as follows.

The auto/housing/finance group wants to continue selling and financing large autos and houses.

The media group wants to continue selling advertising for large autos, houses and loans.

The major oil companies are concerned that if they admit to the reality of Peak Oil, they may face punitive taxation. The major oil exporters are afraid of military takeovers, if they admit to the reality of Peak Oil. The energy analysts are hired guns. This group provides the intellectual ammunition for the other two groups.

Energy Bulletin