Someone posted a message about oil production, which happened to be an important topic. He highlighted the issue of peak oil production in a comment in my blog, and mentioned that the oil supply might run out during the next few years.
First and foremost, oil is needed for the economy to run. A spike in oil prices will increase the costs of production, which lead ultimately lead to an increase in goods and services. However, from my perspective, the decrease in oil supply may be due to the politics amongst OPEC countries. According to the BBC news report whose link I produce below, Iran and Venezuela are backing oil cuts. Iran is intending to trade oil for EUROs, but I am not sure if it does Singapore any good to be trading oil with Iran in the near future, since we are America's allies. I am not sure whether we have accumulated enough EUROs to purchase oil. Venezuela on the other hand is trading oil for commodities. For example, Venezuela has inked a deal with Cuba for a supply of doctors and paramedics to set up clinics in shanty towns in exchange for oil (thirdworldtraveler.com). Since Venezuela is developing its medical industry, perhaps Singapore should send its over-supply of Life Science graduates to Venezuela to support its medical/biomedical industry in exchange for oil. I don't mind being shipped over to Venezuela. Can ogle at beauties from the land of Miss Universes. Okay, okay, I was kidding on the Life Science part. Don't take me seriously on it.
However, on a serious note, some "bioengineers" have attempted to engineer microbes to produce petroleum products. That may have some impact on the oil industry.
Citations
http://news.bbc.co.uk/2/hi/americas/6258243.stm
http://www.thirdworldtraveler.com/Iraq/Iraq_dollar_vs_euro.html
1 comment:
Hi Dr. Dee,
Its not that we're running out of oil...its rather we're running out of cheap oil...in fact, we still have > half of the oil in the ground, just that its the half that's progressively harder to extract.
Huge problems ahead.
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