Winds of Change - What Does Peak Oil Mean?

I have been concerned about the signs of the times and higher oil prices. It is on the lips of every American today as crude oil continues to hover at $100 per barrel.

It is no secret and I believe at our current rate, our society is going to collapse in 20 years or less due to imbalance of perceived supply and demand of crude oil. We have lived in a consumerist economy since the end of WWII and that will be our own downfall.

I remember in the ’70s when we had the first ‘oil crunch’ and the lines at the gas pumps. That is literally going to be a drop in the bucket to what is coming and it really bothers me. It bothers me that ‘big business’ has done nothing to stave off this oncoming train wreck. The car industry and the oil industry have been bedfellows for forty plus years.

Environmentalists have been foretelling the end of days (for cheap oil) for decades, and their words have been drowned out by roar of the auto industry’s engines. We as consumers have been conditioned to buy vehicles with bigger engines and until recently, fuel economy was not an issue. More cubic inches equated to more horsepower which equated to more gas consumption. Boy did that make gas companies happy. (Still does)

Cut to the present day when we(the entire world) is now consuming almost as much crude on a daily basis as all of the worlds oil producers are willing to provide.(Notice I said ‘willing to provide’)

The uniqueness of this point in time when OPEC supply and universal demand is balanced, is called, PEAK OIL. Think of ‘peak oil’ as roller coaster ride. You get on board and slowly climb the top of the ride, OPEC is at the release lever and controls when the riders are taken for a ride. It is at that split moment when you are no longer going up, but haven’t yet embarked on the downward trek, is the peak.

In my opinion, ‘peak oil’ is going to be similar to a roller coaster experience. Once the OPEC created shortage scenario grabs hold, it will spiral consumers down with such speed and force that you will be willing to pay monumental prices for gasoline. This will cause riots, theft, and possibly even more wars. It will not be limited to gasoline. Crude oil is used to make so many other products, that it will cause prices to skyrocket across the board. Plastics, crayons, food storage bags, paint, soap, car parts and even compact discs and DVD’s will be impacted.

The secondary wave will be the cost of doing business. Transportation costs, groceries, durable goods, and so on will be in the cross hairs. All because of greed and money. We cannot develop alternatives to oil fast enough and bring them into the main stream. OPEC and oil producing nations literally have us over a barrel.(of crude).

I will be attempting to cut my dependence on oil in the coming months. I am taking less trips to town. I also am riding with friends and neighbors more. I am also planning to cut back on my home energy bills by utilizing alternative sources. I urge others to do the same. If we can show our neighbors that moving to a more conservative and greener lifestyle is painless, we are more apt to gain a foothold before major crises occur.