Making the Greek tragedy look like a storm in a teacup!


© LHF Graphics – Fotolia.com

This article is a Peak Oil article in all but name (in my humble opinion, of course!) And where has it been posted? On the comment section of The Daily Telegraph, sometimes known as ‘The Daily Tory-graph’. (Actually, this paper has been very radical with some if its revelations in recent years. For instance, it was the first to spill the beans on MP’s Expenses for which it did a huge public service!)

The comment focusses on the Greek sovereign debt crisis and the adverse effects it has had on the world financial markets. It then goes on to warn that there is a bigger shock waiting to happen – the rising price of oil. It does review the impending confrontation with Iran, which could push the price of oil through the roof when the Straits of Hormuz end up being shut in response to a possible Israeli-US air strike.

However, the writer Liam Halligan points out that high oil prices are something more than just the result of geopolitical issues. It is actually as a result of supply and demand. Demand for oil, as he quite rightly points out, is very much on the rise, especially given the propensity for western countries to resort to quantitive easing (meaning that there is too much money in the system chasing too few commodities, including crude oil.) Then, as I stated myself the other day, you have the new emerging economies of China and India who now have a growing demand for oil consumption.

He then mentions the supply side and points out that the rate of decline of discovery of new oil and gas fields since the ’60s has been steep. The reality is also that super-giant oil fields in countries such as Saudi Arabia have now reached their production peak. What I also liked was his shrewd observation re the tar and shale discoveries. Despite the hubris spoken about these by others, he points out that the EROEI is really quite low – making them expensive and inefficient (plus there are environmental issues as well.)

Hmm, I’m not the only one to think this as well then! Another one in the eye for the Peak Oil-deniers methinks?

Soaring oil prices will dwarf the Greek drama by Liam Halligan

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About Owen Law

My pen-name is ‘Owen Law’ (real name: Nicholas Davies.) I’m a science fiction writer specialising in dystopian/apocalyptic visions of the future. I’m from Shropshire, England (on the borders with Wales) and I’m in my forties. I have a background in public services and training. I’ve been working on my first novel, Dragon Line, since 2008. I’ve also written several short stories, one of which you can find on this blog (‘Matilda Leviathan‘). I now reside on the border of Shropshire and Wales, and my interests include writing (of course!), current affairs and environmental issues.
This entry was posted in Article Recommendations, Energy Crisis, Oil Price, Oil Shock, peak oil and tagged , , , , . Bookmark the permalink.

4 Responses to Making the Greek tragedy look like a storm in a teacup!

  1. tellthetruth1 says:

    Was gonna add a point but you’ve already mentioned it! Great page Nicholas, thanks for the news.

    • Admin says:

      You’re very welcome – what point were you going to make anyway? I’d be interested to know.

      • tellthetruth1 says:

        Haaaaa! Set meself up there, didn’t I; like I didn’t know you were gonna ask! Well, there I was, reading through the page and got to the bit where I thought, ‘Hang on, it ain’t long that I heard people saying we’re running out of oil.’ (There are for and agin arguments there, but hey, isn’t there on every subject?) You mentioned that point in your penultimate paragraph. By the way, have you ever read a book called The Energy Non-Crisis? It’s by Lindsey Williams. I’ve yet to get to it. Got tons of backlog reading to do. I thoroughly enjoyed reading your short stories. Very interesting indeed. Watching Iran/Israel/USA and others like a hawk at present.

      • Admin says:

        Hi, you’re absolutely right. There are always ‘for and against’ arguments with anything and it is important that they are openly debated. This includes Climate Change as well as Peak Oil (and why I welcomed posts from Roger the Surf who is a Climate Change Sceptic.) In terms of Peak Oil, it is a major misconception that the ‘theory’ states we are running out of oil. That’s not actually what it states, however. What is actually suggests is that the amount of oil that can be extracted cheaply from the ground will eventually reach peak and thereafter supply will go into long term decline. In the meantime, global demand will then outstrip it, causing oil to become scarcer as a resource. The fear behind this is that the repercussions on the global economy (as oil and fossil fuels underpin economic growth in the industrial age) would be quite catastrophic. This is not quite the same as running out of oil, but all the same it could be detrimental if we don’t find another cheap form of renewable energy to replace it. If we did, this could perhaps offset the Climate Change problem as well (although that’s another issue in itself!)

        I’m glad you like the short stories – I hope the underpinning themes only remain fiction, however! I’ll check out the book by Lindsey Williams as well when I get chance. I know what you mean about back-logs though!

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