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Peak Oil Task Force Report - City of Bloomington - State of Indiana

Peak Oil Task Force Report - City of Bloomington - State of Indiana

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Daily changes in the spot price <strong>of</strong> crude oil, 1983‐2009. Source: International Monetary Fund, Bloomberg as<br />

cited in the New York Times, July 10, 2009. 28<br />

Some observers might see the rapid fall <strong>of</strong> oil prices in the latter half <strong>of</strong> 2008 as pro<strong>of</strong> that<br />

the theory <strong>of</strong> peak oil has been falsified, but we believe they are wrong. It is hard to know<br />

how long the current recession will last. However, if the recession begins to lift soon, oil<br />

consumption will once again begin to accelerate. Then rising demand could collide with<br />

falling production, triggering another rapid run‐up in oil prices and possibly bringing about<br />

another recession soon after the current one ends. However, if the recession is prolonged<br />

(for, say, another five or even ten years), then oil production could fall below even that<br />

required to meet depressed demand. In that case, rising oil prices could prolong the<br />

recession still further. At that point, if not before, the world will probably begin to sit up<br />

and take notice that the Age <strong>of</strong> <strong>Oil</strong> is coming to its inevitable end. By the end <strong>of</strong> the present<br />

century, if not before, most <strong>of</strong> the energy that is now being produced to fuel our vehicles<br />

and charge our electrical grid will have to come from renewable resources.<br />

28 Ibid.<br />

<strong>Report</strong> <strong>of</strong> the <strong>Bloomington</strong> <strong>Peak</strong> <strong>Oil</strong> <strong>Task</strong> <strong>Force</strong><br />

22

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