Friday, April 23, 2010

A Chilling Oil Graph

Recently the U.S. military warned of potential oil shortages by 2015. Peak oil doesn't mean there isn't oil left; rather, the argument has to do with the amount of energy required to extract oil relative to the amount of energy gained from the extraction. As oil becomes more expensive to extract, the relative gain in energy declines.

I have read many times that rising oil prices were the final catalyst for the unleashing the subprime defaults as lower-income borrowers struggled to pay for energy and make mortgage payments. Rising oil prices threaten any and all economic recoveries...

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