Friday, May 25, 2007

Even The Oil Executives Know The Gig Is Up

Oil and Gas Executives say government involvement in supporting the development of renewable energy sources is necessary to alleviate the problem of declining oil reserves, according to the results of a survey conducted by KPMG LLP, the audit, tax and advisory firm.

In the KPMG survey, which polled 553 financial executives from oil and gas companies in April 2007, twenty-five percent of the respondents said that at least 75 percent of government funding into energy should be directed at the renewable sources sector and a further 44 percent said that at least 50 percent of funding should be allocated in the same way. These feelings stem from the overwhelming majority, or 82 percent, citing declining oil reserves as a concern.

"These executives are deeply concerned about declining oil reserves, a situation they see as irreversible and worsening," said Bill Kimble, National Line of Business Leader, Industrial Markets for KPMG LLP. "They see renewable energy sources as a lifeline but our survey shows that the execs recognize they cannot count on them as a solution in the short-term. Consequently, oil and gas companies are sending a clear signal to the government that intervention is needed."

Translated into english, this means we are running out of oil. Demand is increasing quicker than new oil deposits are being found and we are going to run out of oil. Not tomorrow. Some of the big Saudi oil fields are producing less oil. This will mean higher prices, and more inflation.

The democratic party should seize on this report. The freaking oil executives think we need to get into alternative fuels. They are starting to diversify themselves because they know what's going on. Our denialist administration, and very stupid members of congress like Senator Coburn who reject global warming are irrelevant.

Oil will not last forever to meet demand. We need alternative energy investment. We will not fight wars in the middle east, and our air will get cleaner as a result. It's a win win for everybody.

Or, we could pretend it doesn't exist, be totally screwed when there isn't enough energy to power our economy, and then say we should maybe do something, while we move to the tropical climate of Buffalo.

Sometimes doing the right thing is the smart political thing too.