(E) Looming World Oil Shortages

Jura Folks (a-infos-@chaos.apana.org.au)
Wed, 18 Sep 1996 10:11:38 +1000


from rw08961.html

World Oil Reserves Exaggerated

According to the Petro Chemical Industry Report reserves of economically
exploitable oil have been grossly over exaggerated. Instead of a further 45
years, before the reserves run out, it will be 10 years. The report states
that OPEC countries have greatly overestimated their reserves. As according
to oil price agreements, they can only sell a portion of their estimated
reserves. Other contributing factors, are the increasing costs of
exploiting oil reservoirs. Initially oil spurts to the surface, but over
time and continuous exploitation, such expensive measures as pumping steam
into reservoirs is required. Copies of the report are extremely expensive -
$34,000 for a copy so ensuring only the corporate and state elite are aware
of the looming crisis. Important indicators of the severe limitations of
existing oil reserves are that oil super tankers, which have a working life
of 20 years, ceased being produced in the 1970's. Oil companies have also
begun investing heavily in alternative sources of oil such a $200 mill. oil
from shale project in Nth Qld, Australia.

The Next Depression In 10 Years!

An important ramification of the oil crisis will be inflation on an
enormous scale destablising economies globally. The "oil shocks" of the
1970's caused by OPEC price rises contributed to the end of the post WWII
long boom. Such mounting inflation will destablise the banking system
causing bank collapses which in turrn will bring down large and small
corporations. Only with difficulty were major banks in Japan recently
prevented from collapsing via massive loans from the Japanese Govt. Given
the cushioning of the recessions since the 70's, by Govt. fiscal measures,
relatively inefficient by capitalist "law of the jungle" standards
corporations have continued in business, rather than collapsing and being
devoured by their corporate rivals.Whilst the debts of the 3rd World
Countries have constantly grown. Consequently, this depression of the 21st
Century, caused by "geophysical oil shocks" will be much more severe than
the depression of the much smaller and less degenerate world economy of the
1930's.