Energy Reality

America, wake up. This is not the seventies. You are not going to wake up tomorrow with a full gas tank.

Peak oil. We have talked about that before, because of the political and technical problems facing the oil industry, many believe the world is near it's peak of oil production. I am a big believer in this concept, but I just learned a new concept that I believe in even more.

Even if the production of oil continues to increase (a very big if), the increase in the oil exported will probably decline. Why, because the countries that are exporting are using their riches to build up infrastructure, subsidize gasoline and energy prices in their own country, and build a middle classes. Guess what, these new middle classes are buying cars and homes and consuming energy, which leaves less oil to export, which drives up the price of oil, which brings them more wealth, which increases the middle class, etc. You get the pattern. Well, the amount of oil being exported is in serious decline. So if you don't believe in the peak oil theory, perhaps you should believe in the decline of exported oil theory. The facts on this are pretty clear.

When you accept the day of the oil gorilla is over, we will start talking about life after the big oil gorilla.

Next time. Thorium. It has the potential to be the next energy gorilla.