In the last blog I was speaking about Peak Oil risks, and our ability to prepare for it by finding resilience in growing your own food (and becoming a rebelfarmer!). Today I was pointed to a blogger that calculated the peak oil not as usually by the point of maximum production, but by the point of maximum affordability. His question was: how much barrels of oil can you buy with S&P500, an index of the 500 important industrial stocks? This graph shows that since the 50’s we have experienced two peaks of affordability: before the oil crisis of the 70’s and one, the highest, in 1999. Since 1999 we can buy less and less oil for the same amount of stocks. The blogger argues that it is highly improbable that we will ever reach a higher affordability than in 1999. This would mean that 1999 was our “true” peak oil, as the oil price, corrected for inflation with this methodology, will only continue to go up from this moment on. Comments03/09/2011 17:40:01 Absence and death are the same - only that in death there is no suffering. Leave a Reply |