"The reality will be different, and has already begun to assert itself. The cost of a kilojoule is vertically integrated into everything we do, and that cost is rising steadily. As it rises, the cost of finding new energy sources rises with it. The cost of producing new technology also rises. The cost of energy transportation rises, as the cost of transmission losses increases. The cost of heating, cooling, agriculture, fishing, logging, mass transit and a myriad of other activities rises - and as it does, unless compensation increases with it (it won't because the same effect is occurring within industry) - it consumes an increasing portion of the average income. That is, the rising cost of energy begins to marginalize larger portions of the population."
Message 26089681
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Revealed: Opec’s fears that rich countries’ appetite for oil is waning
"In plain language, it means that it acknowledges that governments’ measures to save fossil fuels – a move to biofuels, but also to nuclear, wind, solar and other renewable energy sources – and consumers attitude – read, for example, buying smaller cars or moving into public transport – are hurting, Although the cartel pointed to the generic “crisis” as the reason of the permanent loss in demand, the changes it described – government policy and consumer’s behaviour – are not the result of the financial crisis, but of the oil prices crisis of 2008."
blogs.ft.com
Jim |
