In the past month, three major peer-reviewed journals have published articles relating to limited world oil supply:
- In Science, Technology is Turning U. S. Oil Around But Not the World’s, by Richard A. Kerr;
- In Nature, Climate Policy: Oil’s Tipping Point has Passed, by James Murray and David King; and
- In Energy, Oil Supply Limits and the Continuing Financial Crisis, by Gail Tverberg.
The fact that these articles have been published is significant, because articles in the mainstream press, such as Bloomberg’s recent article, Peak Oil Scare Fades as Shale Deepwater Wells Gush Crude, seem to suggest that our oil problems are past. While the US oil supply situation may be a little better, the world supply situation is still very bad, and oil prices are still very high around the world.
Furthermore, high oil prices tend to have a recessionary effect, and can lead to debt defaults. These issues are described in both the second and third articles above. Thus, there is a substantial chance that high oil prices are contributing to the debt default problem in Europe, and to forecast low world economic growth.
In this post, I briefly describe these articles. Continue reading