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October 18, 2005
Another Way to Say Peak Oil
By: Rowan Wolf
For those who simply cannot get the message of peak oil, they can now turn to Alan Greenspan:
"Even before the devastating hurricanes of August and September 2005, world oil markets had been subject to a degree of strain not experienced for a generation. Increased demand and lagging additions to productive capacity had eliminated a significant amount of the slack in world oil markets that had been essential in containing crude oil and product prices between 1985 and 2000. In such tight markets, the shutdown of oil platforms and refineries last month by Hurricanes Katrina and Rita was an accident waiting to happen. In their aftermath, prices of crude oil worldwide moved sharply higher, and with refineries stressed by a shortage of capacity, margins for refined products in the United States roughly doubled." Greenspan speaking to the Japanese Business Federation 10/17/05
As Hurricane Wilma threatens the Gulf of Mexico once again, oil prices are jumping back up. And since projected global growth is tied to increasing petroleum demand, it is no wonder we see the headline IMF sees 4.3% global growth in 2006, rising risks. I think we can all agree with the understatement that ended Greenspan's remarks:"We, and the rest of the world, doubtless will have to live with the geopolitical and other uncertainties of the oil markets for some time to come."
Posted by Rowan at October 18, 2005 9:39 AM Category: Peak Oil