Facts back moving beyond oil

Myths about the current world oil situation and rapid fuel price increases are causing confusion for consumers, businesses and government policymakers. Unfortunately, many people don’t have ready access to alternative points of view. This author strongly recommends that the reader do some research on the Internet to verify the truth of the following claims.

MYTH #1

The first myth asserts we have plenty of oil, and that discussion of depleting supplies is not a serious matter.


REALITY

Oil production in the United States actually peaked in 1971, and ever since we have been making up for shortfalls in domestic production by importing oil from other countries. But when the world oil production peaks, if it hasn’t already, there is no other location from which we can import oil to make up the difference. This situation is so serious that the U.S. Department of Defense has categorized “peak oil” as a serious threat to the nation. Competition for depleting supplies has already been a major factor in several military actions around the world.

MYTH #2

The second myth states that nothing much is going to change for decades, that people will continue to consume petroleum-based motor fuels the way they have been for the foreseeable future.

REALITY

Even the oil majors such as ExxonMobil are having trouble finding more oil, and they admit it. A new report published by ExxonMobil titled, “The Outlook For Energy: A 2030 View,” predicts a plateau in non-OPEC oil production in the next five years. Because oil companies are now engaged in extraordinary efforts to bring more oil to market (such as drilling at depths of over 10,000 feet below the sea), the peaking of world production will be temporarily extended into the future.

But world oil supplies will soon thereafter rapidly drop off because these extraordinary technical efforts have only postponed the inevitable realization that there is not enough oil to meet increasing world demand. Future supplies available to countries that import oil will be further squeezed because the oil-producing nations like Saudi Arabia will use increasing percentages of their oil for domestic consumption.

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