Saturday, March 12, 2011

Oil is found in between a rock and a hard place---Is it a coincidence that is where we find ourselves in terms of our national energy policy??

Dependence on oil--the bane of our existence. There are a couple of interesting trends in this graph.  One is the change in oil consumption (red line) pre and post mid-1980's.  Pre 1980's the trend line increases at an increasing rate--steeper.  Post-1980's the trend line increases but at a decreasing rate--flatter (the big dip in early 80's is due to a severe recession).  Why would that be? Any thoughts as to why? 

Second, is post 1980.  The mirroring of the import line (green) with red consumption line AND the gradual decline of domestic production (black line).  It is hard to see, but imports have increased at an increasing rate significantly as consumption increased and domestic production decreased.

Oil is found, literally, in between a rock and a hard place. Is it not ironic that we find ourselves as a nation, in terms of our energy policy, in the SAME place figuratively AND literally? Just sayin'...   

Source: Wall Street Journal



4 comments:

  1. I think it's clear that the oil era is ending. As production declines and consumption increases at equally draining rates, it indicates that petroleum is an unsustainable energy source that needs to be replaced by renewable fuels, and soon. I wonder what Joey thinks about this...

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  2. Well Matt, I think that this is definitely a concern our generation needs to be worrying about. The new Chevy Volt is very comforting because this could be the beginning of the end for the need for gasoline. You can tell because so many cars are using alternate fuel sources. What do you think Korina?

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  3. Well Joey, I agree and am equally comforted by a new energy source. A new energy source could even be the spark of new businesses, which would always be of help to the economy. Hopefully this will help drop the unemployment rate in our country.

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  4. It is interesting to notice that in the 50's consumption and production were very close: Not many exports but that today that gap is considerably wider: heavy reliance on foreign imports. Like Matt said, the oil era might very well be ending. Along with peace

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