The Oil Drum

This is a guest post by Eugene Linden. Eugene's most recent book is Winds of Change: Climate, Weather, and the Destruction of Civilizations. Prior books include The Future in Plain Sight: Nine Clues to the Coming Instability. Over the years, Eugene has written for publications ranging from Parade to Foreign Affairs (for more complete list, please visit Eugene's site). In recent years Eugene has been publishing more and more on the web. Apart from his writing, he does a good deal of speaking, and also serves as chief investment strategist for Bennett Management, a family of hedge funds.

"The Speech I'd Like to Hear from a Presidential Candidate on Energy and Climate Change" by Eugene Linden

“As I stand here today on the shore of Lake Lanier in Georgia, I’m sure that many of you are wondering why I’ve chosen to talk about climate change when we face so many immediate problems. Climate change seems far away while the housing and credit crisis, unprecedented oil prices, expensive healthcare, a global food crisis, and the never-ending war in Iraq are right upon us.

These are all urgent issues, and the American people have every right to demand that a Presidential candidate address these problems with leadership and credible programs. Indeed, I’ve spent the great majority of my time in this campaign trying to lay out the way I would confront such issues should the voters entrust me with the Presidency.

But many of these problems, particularly energy prices, our national security and soaring food prices cannot be addressed in isolation. Moreover, changing climate feeds into a number of these immediate issues, and the threat of climate chaos may not be as far off as we might hope.

(New readers, click "there's more" below for the whole article...)

Global Total Liquids production and oil price, January 2002 to present. Production data from the IEA, data files supplied by Rembrandt Koppelaar. Monthly average WTI oil prices from Economagic.

With oil reaching $135 / barrel, Oil Drum readership exceeding 30,000 unique visitors per day and many wild stories circulating in the MSM as to why oil prices are so high this post strives to explain why oil prices are rising exponentially:

• Supply and demand
• Decline of older fields
• Declining net energy and energy density
• New mega-projects
• OPEC spare capacity
• Peak exports