The Peak Oil Crisis: New Years 2006

A neat summary of a year of Peak Oil news.

It’s a good time to review — looking backwards at what we learned in 2005 and forward at what might be in store for 2006.

During the past year, the average price of oil increased 33 percent almost matching the 34 percent increase of 2004. If one wants to think of peak oil just as steadily increasing prices, then we are clearly on our way. Since 2001, oil prices have nearly tripled.
The most memorable feature of 2005 from the peak oil perspective was the pair of powerful hurricanes that smashed into the Gulf oil facilities, momentarily sending oil to over $70 per barrel, and causing extensive damage to Gulf oil production and refining facilities that has still not been fully repaired

Among the noteworthy features of the storms however was how little they seemed to have harmed the US economy. Obviously a lot of people were directly affected by the destruction of one major and numerous smaller cities and towns. However, by moving quickly, the government was able to import, and withdraw from the national reserves, enough crude and refined products to forestall shortages. For now, the US economy gives every appearance of continuing to grow and most observers are forecasting further growth in 2006. From the peak oil perspective, however, this “good news” means more demand for oil in the year ahead and still higher prices coming sooner rather than later.

Energy Bulletin