If you have been reading or watching the News over the last few days, you would have noticed that the price of crude oil has been going through the roof. We have been given explanations, like, the oil companies are profiteering, companies like Coles are profiteering, increased taxes on fuel, oil companies increasing their refining costs, blah, blah, blah. All plausible explanations, but not the real one, because the real reason is very, very scary and that is why we don’t hear about it in the media.
Here is my simple explanation why the cost of crude oil and therefore everything else we use (food, goods, services) are also going up. Demand has outstripped Supply, or in another term you may have read about, Peak Oil. Look, I will make it even simpler for everyone. Here is a graph that Dave Cohen of ASPO USA has kindly let me use. It was used in a recent post to help explain why the oil prices have run-up of late and to quell the debate.
Source: EIA supply and demand data
So you want it simpler? Well, I will do my best. Here is a picture of the Lemon Meringue Pie that Kim made for my birthday yesterday (by the way, it was wonderful). I will use it for a peak oil analogy.
I won’t go on about the alternatives (ride a bike comes to mind), and I have probably harped on about this long enough, but have a look at Dave Cohen’s original post titled “The Age of Aquarius“, and get the real facts. While you are in a peak oil kind of mood, have a look at ASPO Australia for more local news on the issue. In the next few days, I will post some things that we can do to adapt to the shrinking supply of oil in our daily lives.