“It is only a matter of time until inventories and OPEC spare capacity will become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supplies,” Goldman Sachs analysts led by New York- based David Greely said in an email.
Restraining demand? Or cutting off growth? Do we understand that continued dependence on oil will strangle any chances of economic growth in the future?
This isn't the first time we've been warned that we need to diversify our energy sources in order to avoid economic loss. Last year, Lloyd's of London issued a report warning that businesses must take our peak oil problems seriously. The report predicts oil prices above $200 per barrel by 2013, and it warns businesses to take action now or face "expensive and potentially catastrophic consequences."
How many warnings from credible sources do we require before we will get serious about weaning our economy from oil? Not just foreign oil, but all oil.
Yes, oil will remain a part of our economy for a long time because it is ubiquitous -- from pharmaceuticals and cosmetics to plastics and asphalt, we depend on oil for much more than just fuel. But diversifying our energy sources will increase both supply and competition. It is our only hope for a prosperous future.
Woodbridge, New Jersey