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Thursday, July 14, 2005The End of Cheap Oil
This is unfortunate. I drive a toy SUV and it already costs me ~$31 to fill my tank. I'm going to really have to consider the two-hour train ride to school. It probably would take a little less time (a half hour) if I confined myself to riding the train during the peak rush hour times only.
Three decisive factors are pushing the price of crude up permanently: 1) The geological depletion of conventional oil (inexpensive to extract); 2) the entry into a world of terrorism and of permanent wars for the control of oil; 3) the strong increase in demand due to Asian growth and the maintenance of Western consumption.