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Peak oil and the end of cheap oil

“In 2005, there were 33 petroleum-exporting nations. Now there are only 30.” Some Assembly Required shares pieces of the peak oil puzzle. Can you put them together? “Global oil exports have declined from 45.6 million barrels a day in 2006 to 43.7 mbd in 2011, in the face of increased demand from Asia and a fourfold increase in price. The competition for dwindling global oil exports is the driving force behind record high oil prices. For now, the US is still the largest net importer of petroleum products, but by 2030 China and India will want all of the available petroleum exports. All. The largest oil field in the Caspian has had a decline rate of 8.4% a year since it peaked 2 years ago. Production from the major fields in the Gulf of Mexico is declining more than 20% a year. The North Sea, over the last two years, has a decline rate ove[r] 9% a year… and Saudi Arabia… is expected to reach zero petroleum exports by 2030 as its internal consumption and its falling production leave nothing for export.” But years before then, warns Business Insider, “The End of Cheap Oil” will fuel economic stagnation, mass layoffs, high unemployment, business failures and government defaults, declining home and commercial property values, rising food prices, international tensions over energy supplies… All that and worse will happen when “fuel becomes too expensive for the economy to afford.” Wait. Isn’t all that happening NOW?

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