Heading Out

Seeking the winds that help to sail on Shakespeare's tide.

Tuesday, March 15, 2005

Hubbert's Peak - was it today?

Glancing through The Energy Report I see that things seem to be coming together (or falling apart, depending on your point of view) faster than anticipated. It appears that the supply capability and demand curves may have finally met. What this means is that from now on demand is going to be only satiated by available supply. There is no longer a surplus, and so only by pumping more - up to total available capacity - can demand be met. And at the most that will take us only through the summer. In the same way that the Texas Railroad Commission became irrelevant so, today, it appears that OPEC may have reached the same fate.

The people who, before the New Year were saying that we were going to see $30 a barrel oil, and those who promised us only last week that we would be awash with oil are all proved wrong (but who will remember when next the media seek an expert?).

Now we really find out if the Saudi's are going to be able to deliver on their promises.


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