Euro
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- #61
@Toro
Oil has gone up by 900% in 13 years, yet America didn't collapse. When oil was at $20, everyone thought that if oil doubled, the economy would go into a deep recession. It didn't happen.
But the US have been more and more dependent on import of oil. The world will produce more oil for every day but it will peak around 2020.
The US oil production peaked in 1970 and has decreased and will decrease every year from that time. To understand this you must the understand the concept of peak oil.
"Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. This concept is based on the observed production rates of individual oil wells, and the combined production rate of a field of related oil wells. The aggregate production rate from an oil field over time usually grows exponentially until the rate peaks and then declinessometimes rapidlyuntil the field is depleted. This concept is derived from the Hubbert curve, and has been shown to be applicable to the sum of a nations domestic production rate, and is similarly applied to the global rate of petroleum production"
71% of us oil consumption takes place in the transport sector. The transport are heavily dependent on oil. Without oil or high oil price transport of nescessay freights will be impossible. Nesesccary goods wil become to expensive to imoprt and transport because of the high prices.