Tags: Hirsch World Oil Crisis Coming Soon

Hirsch: Oil Crisis Is Coming Soon, to a World Near You

Thursday, 04 Nov 2010 04:05 PM

Oil guru Robert Hirsch says peak oil production will arrive a lot sooner than most of the world would like.

“World oil production hit a plateau in mid 2004 and stayed in a narrow fluctuation range in spite the Great Recession,” Hirsch said during a recent presentation. “We believe that world production will likely stay on its current plateau and ... decline in 2 to 5 years.”

Hirsch’s personal preparedness measures include being completely out of bonds, almost out of stocks, adding some gold and annuities, moving closer to mass transit and shopping — and trading in his gasoline guzzler for a Prius.

World GDP and world oil-production growth rates have been tightly coupled for decades, Hirsch notes. However, he believes the correlation will work in reverse: Declining world oil production will drag down GDP.

“Our best-case mitigation does not overtake expected world oil-production decline for over a decade,” Hirsch says. “If the rate of world oil-production decline is higher that 4 percent, the challenges will be even worse; if lower, then less.”

Exporters will be flooded with money when world oil-production decline is recognized due to very high oil prices, Hirsch observes, but no one yet knows if oil rich nations will withhold exports in order to husband their resources.

“We are all going to be heavily impacted, and most people will learn about this in one of three ways,” says Hirsch. “Oil prices shoot up dramatically, a major leader outside the U.S, may announce it or the U.S. president may announce it.”

According to the Petroleum Economist, former diplomat Mehdi Varzi, director of oil and gas research for Kleinwort Benson Securities, says Iran — one of the world’s largest oil exporters — must reorganize its oil-and-gas sector along more commercial lines in order to avoid a drop in oil-production capacity.

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Oil guru Robert Hirsch says peak oil production will arrive a lot sooner than most of the world would like. World oil production hit a plateau in mid 2004 and stayed in a narrow fluctuation range in spite the Great Recession, Hirsch said during a recent presentation. We...
Hirsch World Oil Crisis Coming Soon
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2010-05-04
Thursday, 04 Nov 2010 04:05 PM
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