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Many oil experts, by applying Hubbard’s
theory to the entire planet, believe the world is either close to or
has already passed peak oil production. In fact, according to the
EIA (Energy Information Agency) global production peaked in May of
2005 and has declined since. This is in spite of the dramatic rise
in oil prices since 2005.
CERA (Cambridge Energy Research
Associates) is a well respected private energy consulting firm.
Their latest study indicates existing global oil fields have
declining production rates of 4.5% per year. While some will
consider this number manageable it means the world needs to find a
new Iran worth of production every year to maintain current output.
Using CERA’s demand growth model and
conservative decline estimates, we will need 59 million barrels per
day of additional oil by 2017. This is the equivalent of
discovering a new Saudi Arabia every year. The likelihood of this
happening is incredibly remote. The result that many experts
predict is that in the next decade the cost of energy will rise
dramatically.
Some observers, such as petroleum
industry experts Kenneth S. Deffeyes and Matthew Simmons, believe
the high dependence of modern transportation, agricultural and
industrial systems on cheap oil will cause severe increases in the
price of oil which will have negative implications for the global
economy.
Do you want to protect your portfolio
from the ravages of Peak Oil? Do you want to profit from the rising
cost of energy? Call DeWinter Financial to speak to an advisor that
understands peak oil.
Call Bill DeWinter
- Toll Free:
1.888.665.7534
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