Tuesday, January 13, 2009

Mapping Our Oil Addiction

The Rocky Mountain Institute has produced an oil map webtool that lets you see how oil imports to the US have evolved since 1973.



You can also track the amounts spent on oil imports over time, and the dollar amounts of oil being imported from individual countries.

One thing this tool makes abundantly clear is how different the last few years' run-up in oil prices was. Prices spiked during the first and second oil crises - ca. 1973 and 1979, respectively. But in both cases, the price surge was a direct result of a decrease in supply. The last few years, however, saw prices spike higher than they'd ever been, even though supply remained roughly constant. How could this be?

Some blame speculation in the oil markets. But if this was the case, supplier countries ought to have responded to the surging prices by increasing exports - something they failed to do until prices got really astronomical last summer.

I think a more likely explanation is that the past few years have seen global demand butting up against the geological limitations on global supply. This is more commonly known as the phenomenon of peak oil. Supply limitations are the only way to countenance flat exports in the face of soaring prices.

Of course, prices collapsed last year after two things happened: OPEC finally increased production a smidge, and (more importantly) the global economy took a long walk on a short pier, causing demand to crash. So the pressure on global oil supplies has eased - for now. We'll have to see what happens when the economic picture gets rosier again. If oil prices again quickly begin to spike, we'll have a good indication that the era of peak oil has arrived.

11 comments:

tn requin said...

sleeping bag
tablecloth
travel luggage
car gps
car parts
GPS navigation
portable GPS
lcd tv
flat tv
digital picture frames
unlocked cell phones
wedding dresses
wedding jewelry
chaussures mode
chaussures Femmes
women's shoes
round tablecloth
discount handbags
chaussures sport
chaussures pas cher
fashion bedding
id lanyard
lanyard
creative gadgets
gift ideas
kids wall stickers
wall stickers
bath curtains
kitchen faucet
bathroom faucet

asuransi pendidikan said...

I think people fear idea management and innovation because there's a significant number of ideas that simply won't plan out.......Nice statement.....keep posting

albumfoto said...

this day I've been searching for information on various issues, this I found very good and I would like to congratulate you for your work.

design interior jakarta said...

I think that this post is one of the best that i have read in my life, congrats you did a great job,.

perusahan security said...

the difference between the content spammers and most corporate innovators is that the smaller

jual wine said...

I'm writing to you because I just came across a business that I think has great potential. It lets you save money on almost everything. Make money from almost everything,

coklat valentine said...

If growth is important to a firm, and if growth is dependent on offering existing products and services to new customers

belajar internet marketing said...

innovation is very natural and happens in the "real world" as new plants and animals colonize new ecological niches.

kuliner bandung said...

I wonder how you got so good. This is really a fascinating blog, lots of stuff that I can get into. One thing I just want to say is that your Blog is so perfect

konsultan perusahaan said...

We generally think most specifically about the risk associated with a new product introduction

how to stay erect said...

I would be aware that as somebody who really doesn’t comment to blogs a lot (in actual fact, this may be my first put up), I don’t think the time period “lurker” is very flattering to a non-posting reader.