246
PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
Table 9.1 Change of economic status of the United States over the past
six decades.
The U.S. in 1950
Self sufficient in oil:
World's foremost oil producer
World's foremost oil exporter
Self-sufficient in nearly all
resources
World's major exporter of manufactured goods
Major producer of premium
automobiles
World's foremost creditor nation
The U.S. in 2008
Lacks self sufficiency in oil
World's foremost oil importer
World's foremost importer of
non-petroleum resources
World's largest importer of
manufactured goods and
manufacturing jobs outsourced
to other countries
Auto-industry in financial trouble
World's foremost debtor nation
Bad management by the government and by the private sector of
the resources over the past six decades also adds to the equation
and has contributed to the current situation.
As a result, oil depletion is real not only in the United States but
also on a worldwide scale and most studies estimate that oil production will peak sometime between now and 2040. This range of
estimates is wide because the timing of the peak depends on multiple, uncertain factors that will help determine how quickly the oil
remaining in the ground is used, including the amount of oil still
in the ground; how much of that oil can ultimately be produced
given technological, cost, and environmental challenges as well
as potentially unfavorable political and investment conditions in
some countries where oil is located; and future global demand for
oil (Gordon, 2007).
The world may never actually run out of crude oil only because
oil will eventually become less expensive than lower cost alternative sources of fuels (Speight, 2008, 2009, 2011). The time frame of
such development is dependent upon the realization that alternative fuels will become a way of life. However, alternative fuels
and transportation technologies face challenges that could impede
their ability to mitigate the consequences of a peak and decline
PETROLEUM TECHNOLOGY, ECONOMICS, AND POLITICS
Table 9.1 Change of economic status of the United States over the past
six decades.
The U.S. in 1950
Self sufficient in oil:
World's foremost oil producer
World's foremost oil exporter
Self-sufficient in nearly all
resources
World's major exporter of manufactured goods
Major producer of premium
automobiles
World's foremost creditor nation
The U.S. in 2008
Lacks self sufficiency in oil
World's foremost oil importer
World's foremost importer of
non-petroleum resources
World's largest importer of
manufactured goods and
manufacturing jobs outsourced
to other countries
Auto-industry in financial trouble
World's foremost debtor nation
Bad management by the government and by the private sector of
the resources over the past six decades also adds to the equation
and has contributed to the current situation.
As a result, oil depletion is real not only in the United States but
also on a worldwide scale and most studies estimate that oil production will peak sometime between now and 2040. This range of
estimates is wide because the timing of the peak depends on multiple, uncertain factors that will help determine how quickly the oil
remaining in the ground is used, including the amount of oil still
in the ground; how much of that oil can ultimately be produced
given technological, cost, and environmental challenges as well
as potentially unfavorable political and investment conditions in
some countries where oil is located; and future global demand for
oil (Gordon, 2007).
The world may never actually run out of crude oil only because
oil will eventually become less expensive than lower cost alternative sources of fuels (Speight, 2008, 2009, 2011). The time frame of
such development is dependent upon the realization that alternative fuels will become a way of life. However, alternative fuels
and transportation technologies face challenges that could impede
their ability to mitigate the consequences of a peak and decline