Oil and the End of Globalization?

Jeff Rubin sees peak oil stalling globalization, while Gwynne Dyer believes there will be sufficient energy sources with improved energy efficiency.

Published: 17-Apr-2010

Jeff Rubin in his recent book Why Your World Is About to Get a Lot Smaller and in his many public appearances has made a very passionate and compelling case for the concept of "peak oil."

The thesis he and others expound is quite straightforward and is based on the simple laws of supply and demand. In short, the rising demand for oil from the many emerging economies cannot be met from the existing known reserves nor is there any likelihood of major new discoveries to meet the shortfall.

Certainly the growth of China, India and others as major economic players in the world economy has led to dramatic increases in demand, not just for oil, but many other resources needed to sustain their growing manufacturing base.


IEA chief economist Dr. Fatih Birol is now warning oil production is likely peak in ten years.

International Energy Agency reports the rate of decline in oil production is now running at nearly twice the pace as calculated just two years ago.

Offshore oil platform on fire in the North Sea

Despite risks, new field discoveries have kept pace with declining oil reserve production, reports Reuters, but age of cheap oil is over.

NOAA satellite of Deepwater Horizon oil spill in Gulf of Mexico late April 2010.

What's left is hard to get at and risky to extract, as Deepwater Horizon blowout shows.


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