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World At PEAK-OIL Output!

Will Eventually Lead To Wars

 

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10-25-7 

(A-O Newswire) -- The world has reached the point of maximum oil output and production levels will halve by 2030 -- a situation that will eventually lead to war and disaster, a report claims. The German-based Energy Watch Group released a report Tuesday saying the world's oil production peaked in 2006 and from now on will drop by around 3 percent a year. It says that by as early as 2030, the global availability of oil will be half of what it was at its peak.

"It's a very serious result," said Hans-Josef Fell, a German lawmaker from the environmentalist Green Party who commissioned the report. "I fear the world will come into a big economic crisis in the coming years." The report warns that coal, uranium, and other key fossil fuels are also in declining supply. It predicts the fall in fossil fuel production will bring with it the threat of war, humanitarian disaster, and general social unrest.

The report does have detractors and skeptics, most notably within the oil industry. There have been numerous rumors and claims that the oil industry is hiding the fact that there are more oil reserves than publicly acknowledged. One particular claim, says that there is a tremendous amount of oil remaining in Alaska. This is apparently true according to one oil industry source who in the past confided as much to A-O, but the catch is in reaching the reserve deposits and getting it out of the ground and into the distribution system in an ultra-hostile environment. Alaskan winter weather makes it nearly impossible to reach and remove at least without losing vast amounts of money.

One oil geologist confided to this reporter three decades ago that there was believed to be an extremely large pool of oil underground in central and northern Illinois, but it is extremely deep and covered by an impenetrable layer of granite rock that simply cannot be drilled through. The same expert also reported that there was a belief there were also large oil reserves through northern Indiana as well as Ohio and even in Pennsylvania but again, impossible to reach or uneconomical to reach. The expert noted that if it costs $100 to $200 per barrel to bring to market and the price of oil is $20.00 a barrel, you're going to lose a lot of money that investors would rather not lose.

The geologist noted that the entire midwest region, from Illinois to Pennsylvania was believed to be part of a huge oil deposit reserve but that much of it was unreachable and hard to even detect. He indicated that present technology was simply unable to reach those deposits, not only there but in other areas of the world, including on land and under the ocean floors.

For that reason, most experts have been predicting a time of "peak oil" based in part on fewer new oil fields to be discovered where oil was easy to recover and increased usage/demand unable to keep up with demand, plus dwindling oil fields. When an oil field reaches a certain level, it becomes more difficult to extract both in time and effort. This appears to be happening now as reports from Saudi Arabia in the last two to three years indicate the Saudi fields are beginning to sputter. The Saudis are very secretive about this fact and consider it necessary to hide the fact that many of their oil fields are depleting to the point of sputtering.

As noted earlier in this article, the ramifications of dwindling oil supplies portends serious geo-political consequences as nations battle for the remaining oil supplies to keep their economies lubricated and functioning. For more on this story, read the CNN article, LINK here.  -

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