Chavez warns of coming world energy crisis AP Chavez: World Faces Major Energy Crisis Saturday October 15, 11:16 am ET By Ciaran Giles, Associated Press Writer Venezuela Leader Says World Faces Major Energy Crisis; OPEC Members Unlikely to Boost Production SALAMANCA, Spain (AP) -- Venezuelan President Hugo Chavez said Saturday that the world faces an energy crisis but there is little chance of his country and other OPEC members increasing production because they are already pumping near "their capacity." "The world will have to get used to a barrel price, I think, of above $50, and energy will have to be saved," he told reporters as leaders from Spanish- and Portuguese-speaking countries met in this central Spanish town. After soaring in August, crude oil prices have been between $60 and $70 a barrel for more than a month. "We're at the doorway of major energy crisis worldwide," Chavez said. "We'll have to develop other resources such as wind, solar and nuclear energy -- naturally for peaceful purposes." He said Venezuela was in talks with Argentina and Brazil regarding nuclear power. "Prices will continue to rise but oil is running out," he said. Chavez said a "lack of imagination in the United States and the war in Iraq, which has destabilized the market in the Middle East, has also driven up prices." Increased demand from countries such as China and India is making the problem worse, he said. "The whole world right now is producing petroleum at their maximum capacity," he said. "In Venezuela, for example, we can't produce a single barrel more." Venezuela, a member of Organization of Petroleum Exporting Countries, is the world's fifth largest oil exporter and a major supplier to the U.S. market. Venezuela's state oil company, Petroleos de Venezuela, says it pumps 3.2 million barrels of crude oil a day. But industry analysts put the figure lower, saying the country has never fully restored output since an extended strike in 2003 that sought to force Chavez's resignation. Increased production would not solve the price problem, Chavez said. "The cause of the increase in the price is not in the production. It's partly the intermediaries who make things dearer. It's also because of the increase in demand and the irrational capitalist consumerism model," he said. "The United States for example, with scarcely five percent of the world's population, uses almost 25 percent of the petroleum and combustion fuels produced in the world," he said.
There is a lot of truth to that article, and a lot of political blustering too. We had better be prepared for oil exporting countries decreasing their production 2-5% to keep the oil prices high.
I recommend renting the movie The End of Suburbia to get an idea of what's coming down the pike. The movie lays out a compelling analysis of how this problem started, where we are now, and what might happen in the future should this trend continue. The oil problem is not new. The United States has been preparing (militarily) for this since the 70's while at the same time, sticking our heads in the sand for alternative sources. The culmination was the "Carter Doctrine". Weapons of mass distruction - think again. It's the big "O" Without it, the United States ceases to function as a super power. Some say a complete overhaul of our "oil based" economy will take 50 years to correct. They also say we don't have 50 years of cheap petrolium left. That difference, made up on the backs of global economies, will manifest itself through decreasing lifestyles of the middle and lower classes who can't afford the power and products they've become accustomed to.
Intermediaries make some money in the process, there is also true that exaggerated U.S consumption keeps the demand growing and growing while the stock of oil produced remains the same or lower.
50 years of cheap petro left some people around here seem to think we havent had any of that for months
Highways themselves are becoming the next big crisis. Traffic jams are getting worse, time and productivity lost to commutes are growing, and the cost of building bigger better highways is climbing beyond reach. Robotic cars and central traffic control to better utilize highway capacity will help, but if the demand for road space continues to increase, those gains will be overwhelmed. We must either go totally metro and walk everywhere, or massively decentralize. Cities are obsolete and supporting them (roads, waste removal, pollution, etc.) is becoming prohibative.
most conservative estimate ive seen 8 Billion gallons of gas burned while sitting in traffic last year in the US alone (as reported by CNN this morning) MSNBC reported 13 billion in a report published 2 months ago that is idling it away. hearing that just reinforces my belief that the Prius may not be the answer, but is the closest by far.
