Political action needed to deal with reality of peak oil

The world has reached a condition of supply and demand called peak oil. Basically, demand for oil and gas is now exponentially growing faster than the ability to produce the commodity.

It takes up to five years to bring an oil discovery to production. The situation is exacerbated by the location of new discoveries.

Most of the “easy oil” in the world has already been tapped and is becoming exhausted. Now drillers are forced to seek supply in remote and dangerous areas of the planet, including the oceans where deep-water drilling is expensive and hazardous.

The Canadian oil sands projects are an example of remote and environmentally unfriendly production sites. Already U.S. politicians are complaining about the so-called “dirty” crude with high sulphurous content that the oil sands ship to U.S. refiners.

Ironically, Canada is the second largest supplier of crude and natural gas to the U.S.

Geulph Mercury