M. King Hubbert was a celebrated oil geologist who in 1956 correctly prophesized that U.S. petroleum production would peak in the early 1970s, then irreversibly decline. In 1974 he likewise predicted that world oil fields would achieve their maximum output in 2000; a figure later revised by his acolytes to somewhere between 2006 and 2010.
If the curve of global oil production is indeed near the point of descent, as these experts believe, it has epochal implications for the world economy. More expensive oil will undercut China's energy-intensive boom, return OECD countries to the bad old days of stagflation, and accelerate the environmentally destructive exploitation of low-grade oil tars and shales.
Most of all, it will devastate the economies of oil-importing third-world countries. Poor farmers will be unable to purchase petroleum-based artificial fertilizers just as poor urban-dwellers will be unable to afford bus fares. (Already, rising oil prices have brought chronic blackouts to cities throughout the globe's southern hemisphere.)
The only certain beneficiaries of this coming economic chaos will be the big five oil corporations and their corrupt partners: the Nigerian generals, Saudi princes, Russian kleptocrats, and their ilk. Crude oil truly will become black gold.
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