Peak Oil Crisis
Gas going up? Of course it is and here's why.
People need to wake up to this major issue. We don’t have a fuel that can replace oil. Bio-fuels require our farm lands and still can only create minuscule amounts of fuel the world would need to keep growing. Hydrogen requires electricity to be produced and to put hydrogen cars in to the market requires oil based manufacturing. If this process was started years ago the world might have had a chance.
You don't need to run out of oil you just need more demand and shortages before prices skyrocket and destroy the economy.
Oil is used for everything. You need it to make those new cars that don't run on it. You need oil to power those tractors that farm your food and transport it. You need it to make those computers and computer chips. Banks rely on oil production because the economy runs on it. Delivery companies can’t ship products to consumers without it. You can’t buy the product if you can’t get to the store. As you can see it’s a major fallout effect.
The 70's Gas crisis stemmed from just a 5% shortfall in production causing oil to nearly quadruple. With that in mind expanding businesses will be impossible. Without having enough fuel, shipments will come to a slowdown meaning product can neither be sent nor received. Prices will be so high that people will only buy necessities rather than splurge on that “new cell phone” which triggers loss of jobs because demand for leisure products comes to a standstill.
The same thing happened in California a few years ago with natural gas: a production drop of less than 5% caused prices to skyrocket by 400%.
The article explains that experts expect that 2005 is the last year that prices will remain reasonable. When Gas prices go up so does everything else. To cut costs expect more jobs to be outsourced around the globe.
With credit debt mounting on America and people getting in over their heads with mortgages expect there to be major fallout around the globe. The stock market will suffer the most because the market is all about potential growth of a company to make their values rise. Now imagine there isn’t enough fuel to enable large profits for companies. It becomes clear that in the near coming future we will have a major crash.
Last Update 12-26-2015
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