Now they might start sitting up. They wouldn’t listen to the environmentalists or even the geologists. Can governments ignore the capitalists?
A report published last week by Citibank, and so far unremarked by the media, proposes “genuine difficulties” in increasing the production of crude oil, “particularly after 2012.”(1) Though 175 big drilling projects will start in the next four years, “the fear remains that most of this supply will be offset by high levels of decline”. The oil industry has scoffed at the notion that oil supplies might peak, but “recent evidence of failed production growth would tend to shift the burden of proof onto the producers”, as they have been unable to respond to the massive rise in prices. “Total global liquid hydrocarbon production has essentially flatlined since mid 2005 at just north of 85 million barrels per day.” Read more