Wednesday, August 5, 2009

Gas Prices Surge and Peak Oil is Nearer Than Feared

crude oil barrelThe cost of America's addiction to oil is rising.

In 2008, America spent $453.3 billion on imported oil.

But the cost of that addiction continues to increase.

Oil prices surged this week to over $71 a barrel.

Higher oil prices appear to be the "new" norm, despite the slow US economic recovery.

As most motorists know, this has resulted in higher gas prices over the past month at the local stations.

In just the past week the average US Regular gasoline price rose to $2.56 a gallon, according to the US Dept of Energy. This was a jump of over 5 cents in just one week.

But what if the rate of oil output reaches its maximum and can only decline?

The stark reality of "Peak Oil" may be closer than ever before.

Dr. Fatih Birol, chief economist for the International Energy Agency, told reporters in Paris this week that:
"...the public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years – at least a decade earlier than most governments had estimated."
Dr. Birol also noted that most existing fields have reached their peak capacity and the oil existing oil "alternative" is to use the much dirtier use oil derived from tar sands.

All of this means the US needs to move aggressively in promoting renewable fuels like ethanol. Ethanol is available Now. Flexible Fuel Vehicles work Now! And ethanol is made here in the United States!

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