The media talks about ” climate change ” all the time but rarely talk about ” Peak oil ” . When most people think of oil they of oil shooting out of an oil well . This is the cheapest form of oil to produce. This type of oil is mostly found in the middle east countries like Saudi Arabia.
In the United states yes there is a lot of oil but the problem is its far more expensive type of oil . Shale oil is not really oil in the first place . Its shale rock that’s turned into oil . We my be the Saudi Arabia of shale oil but Saudis have the cheap oil .
Oil production of cheap oil in the United States peaked around 1970. The largest oil field of cheap oil was discovered in mid 1960s in Saudi Arabia. In order to have access to this oil . We made a deal with the Saudis in 1973 . This was called the ” Petro dollar ”
The petro dollar was an agreement where OPEC countries trade their oil for dollars. In return our military would protect their oil . In a effect the dollar was now backed by the demand for oil in order to trade in oil they needed dollars. The petro dollar allows us to print as much money as we want to fund the government. Also we can just print money to buy the cheap mid east oil .
Many people often say there is plenty of oil . If they were the case why would we be looking for oil is places like the arctic ? Most of the oil that is left is an unconventional form of oil. These unconventional forms of oil have been know about for decades but only to recently have they been profitable. When it comes to oil it’s not about how much you have its about profitability . An example would our shale oil which has profitability around $80 dollars a barrel oil is currently trading around $50. Many oil producers have stopped producing at these low levels due to like of profits.
There is this false idea in America that oil companies drill for America , they don’t they do it for profits. They don’t ” drill baby drill” for America but this myth is spread in the mainstream media. Which is funded by big oil .
People can debate climate change all they want but Peak Oil is an undeniable truth that is largely ignored . We learned the effects of high oil prices in 2008 which played a role in the great recession. Peak oil is here but we could have done something about it but it’s too late.