OIL, GOLD and the US DOLLAR

grammatical typos:  how does = how do .. when plural

 Quickly I would refer you to a site that has a lot of information on it, some fascinating links, and given its title, an obvious opinion.

https://www.lifeaftertheoilcrash.net/

  I really think most petroleum engineers, who laughed at Dr.Hubbert initially, are almost all convinced he was very accurate on his estimation of the fast rate of oil field exhaustion. Major fields have and are proving it true every day, Cantarell being the most recent example in Mexico.Saudi Arabia is resorting to some rather extreme water pressure techniques that are sure signs of declining field supply.

 The shrewdest oil investor T Boone Pickens, a billionaire, is a firm believer in it...and T Boone  does know oil.

 Some people hold out hope that radical technological invention would allow for better extraction and or discovery.The discovery part has kind of been given the lie, as there have not really been massive finds since the North Sea, and that was a long time ago in technological time.

 You have to add to the prospect of diminishing supply exponential increase in demand from developing countries. Africa did not have a heck of a lot of cars in 1950...and they are not even considered usually when people speak of escalating demand, as everyone thinks of China, India and Brazil (but point to Brazil as a semi solution with ethanol). Ethanol is at best an energy neutral "solution" to me, really not a solution at all.

 Distinct from the physical realities of oil and its exploitation, you add in serious national interests in play determined to make certain their countries have control of necessary oil to assure their continued development. China (PetroChina) and Russia(Gazprom) are simply making certain that the integrated oil companies do not control the discovery and extraction of such a precious resource. Heard of Darfur, and the tragedy that is going on there? PetroChina is right there in the middle of it, for one reason.China is correct in concluding that supplies of oil are absolutely essential to their continued growth and intoxicating prosperity.The military and economic future of every country is determined by the amount of oil readily available to its economy and its military.

 Throw in a guy like Chavez in Venezuela who has political reasons as well to nationalize  such a crucial resource in his country, booting out the majors after they had invested billions in development of such fields, and you have a real squeeze on the integrated oil companies' abilities to even get access to oil.

  But simply put, peak oil is the fact that oil fields initially seem blessed with almost unlimited, easily extracted oil, butare pumped out far faster than scientists originally estimated.

  Given that virtually synthetic material, all plastics, etc etc are made from oil, all food is transported to market by oil,  etc etc, and one wonders how such a non renewable commodity was ever considered to be worth a mere $10 a barrel a few years ago, when people were willing to pay $3.50 a cup for coffee.

 

Thanks for the response and will check the link you cited.   Have a great day!