Chart of the Day

Via Kevin Drum, here’s a chart showing peak oil production throughout the world.

How an eventual decline in oil production will create mayhem with the world economy:

Global production of oil has hit a ceiling — or, at best, will grow very slowly for the next few years on its way to a ceiling in 2015 or 2020 or so — and this is going to cause severe volatility in the global economy. As world GDP grows, demand for oil increases and bumps up against the supply ceiling, prices spike upward, and the world goes into recession. Demand for oil then decreases a bit, the economy recovers, rinse and repeat.

The sooner we shitcan fossil fuels as an energy source, the sooner we’ll be on the vanguard of an all new green energy economy.

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  • Dave Krebs

    Here’s hoping we have President Obama in 2012 with Democratic majorities in both houses of Congress and the political will for a Big Government Clean Energy Program.

  • andrewdski

    I’m not sure why Mr. Bacon choose the chart he did, but it does not show peak oil production “throughout the world”. It only shows production in countries past the peak. The idea was to show how quickly production declines after the peak, to justify their projections, which are more pessimistic than the petroleum industry’s.

    The better graph is figure 7 from the report (http://bit.ly/r5z95n) which shows total global production. Doesn’t change the point of either your post nor Bacon’s. Perhaps the decline is a bit less dramatic, but it looks just as dire to me. Still seems best to be accurate.

  • D_C_Wilson

    I’m sure Michele Bachmann has an explanation for why the fact that oil production in the lower 48 states peaked in the early 70s is all Obama’s fault.

    • http://www.osborneink.com OsborneInk

      I’m waiting for someone, anyone to ask her about abiotic oil. Remember, she doesn’t believe in dinosaurs.

  • Ron Spridgen

    Bless you for posting this. We need more of this kind of stuff. Far to often the media, including the actual liberal media is stuck discussing the right wing agenda or right wing comments. Lets make them start talking about our issues! Screw their tired ,hackneyed ,knee jerk, bull hockey. Give them a real progressive agenda to talk about instead of the one they are forced to make up because progressives are to ….something….to press their case.

    Good on ya Bob Cesca