Saturday, June 5, 2010

Michael Ruppert Explains Peak Oil

What is Peak Oil?

Peak Oil is a phenomenon where the crude oil production volume has reached a peak.

Critics often argue that the earth has plenty of oil and that we will never run out of a supply. That may be true, but the amount of oil in the earth has nothing to do with Peak Oil. Even if the planet had an indefinite amount of oil, there would be no guarantee that humans would have the technology to get to the oil in a cost effective manner. Simply put, if you spend more energy digging into the earth to extract the oil than the amount of energy you pull from the earth, you can no problem extract the oil in a manner that will allow you to make money. If you can't make the money and produce a net gain of energy, the drilling is pointless. The oil is in the earth, but it's becoming more and more difficult to find the oil hot spots in a cost effective manner. That is the basis of Peak Oil.

Since our entire civilization has been built and based on oil, there is no way to maintain this current population without a steady suppky of oil. Oil has allowed the population to boom in the last 1000 years and if that supply is disrupted, that population bubble will pop.

This means that if the Peak Oil Theory is correct, the world population MUST crash.

In the video above, Michael Ruppert (from the documentary "Collapse") discusses the current oil situation.

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