A parliamentary report from New Zealand is saying we have even less time to act than we might have thought.
Published by the Economics and Industry Team of the Parliamentary Library the report—entitled [url=http://www.permaculture.org.au/files/nz_peak_oil_study.pdf]The Next Oil Shock?[/url]—lays out the concept of peak oil explains that oil production is moving to increasingly harder to extract reserves and examines the economic implications of supply being unable to keep up with demand.
The analysts at the Parliamentary library don’t give us much time before it’s going to start to hurt:
“When a supply crunch forces oil prices beyond a certain point the cost of oil forces consumers and businesses to cut other spending inducing a recession. The recession destroys demand for oil allowing prices to drop. Major international organisations are warning of another supply crunch as soon as 2012.The world may be entering an era defined by relatively short periods of economic growth terminating in oil price spikes and recession.”
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