May 13, 2009

Is $200 oil is coming? Better keep focus on biofuels

Read an interesting article on oil prices and supplies. It is just a reminder as to how far behind the barrel we are with our dependence on foreign oil. (We've doubled our dependence since the 1970s.)

It is also a good reminder as to why we should never take our eye off the end goal - of of using more renewable fuels like ethanol.

The article, which you can find here, notes that Matt Simmons, an energy analyst and author ('Twilight in the Desert'), recently told Reuters: We are three, six, maybe nine months away from a price shock. We are not talking about three to five years away -- it will be much sooner. These prices now are dangerously low. The lower prices fall, the less oil will be produced and the greater the chance of an oil spike.

The article's author does not focus on replacements for oil (and gets a fact wrong on ethanol). Instead, he reminds us all that we're loosing the battle - loosing the race with time. That demand for oil is growing and outpacing what we can produce (or find), that prices will spiral upwards and we'll all be paying the oil piper soon enough. Just like last year.

Sound like a call to action?

(Wondering how much oil ethanol replaces? Check out this post.)

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