Comment 26237

By adam1 (anonymous) | Posted August 06, 2008 at 00:56:51

Gullchasedship, to answer your question, here are some researched facts that should help you in your quest to understand the oil situation:

Oil prices skyrocketed in the 70's in North America because US production reached its peak. It took a while for North America to shift its oil supply to overseas sources (namely the middle east). This resulted in the spike you see if you look at historic oil prices.

So, the price spike in the 70's was due to a national oil peak, but the price spike we see today is due to the oil peak on a worldwide scale. If I am correct, the stats say a new oil rig hasn't been installed in the US for over 40 years. Only now, Bush has lifted restrictions on rig installations offshore near highly populated coastal areas. A lot of people are upset at this as you can imagine.

Canada isn't due to peak for another 20 years. The tarsands in Alberta are booming... but unfortunately most of that oil is very hard to extract. Now that price per barrel is high enough, it has become profitable to extract the tarsands oil as well. Our increased oil production from the tarsands is also why Canada has been cushioned from the recession in the past few months.

I hope this clears things up. Feel free to do your own research and let me know of any inaccuracies in my post.

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