Petrol insiders now nervous about Diminished Russian Fossil Fuel Supply
Russian oil production, for years a vital source of new supplies for world markets, is showing signs of a slump, adding to uncertainties that have helped push oil prices to record highs.
The supply of oil coming from Russia falling since the start of 2008 was the first time that had happened in ten years. The decline was a full percentage point over the same time last year which is a huge amount.
Declining production from the world's largest oil producer and one of its largest exporters puts further pressures on an already strained market and adds to the potential for higher prices for a global economy coping with a slowdown.
Gasoline prices are about 6 cents higher than last week, and 51 cents higher than a year ago! . Diesel prices are going up even faster Diesel prices are 10 cents higher than last week and $1.18 higher than a year ago.
The fall of the dollar and the various bubbles that are bursting here in the USA have resulted in some reduction in the demand for fuel from the world's largest fuel consumer. however this is being counteracted by a faster increase in demand from places like India and Asia and we could see a rise in prices if there is any supply glitch. This factor is even more likely to cause trouble since even Saudi Arabia's petroleum output is lower than it was one year ago.
Meanwhile, closer to home?
Mexico is having major problems with supply as well at its field in Cantarell.
Cantarell, which currently produces one of every 50 barrels of oil on the world market, is in such a steep decline that analysts foresee Mexico becoming an oil importer in the next decade or sooner. That would batter Mexico's economy, which depends on oil exports to fund 40% of its government spending.
Possibly the bottom of the barrel on bad news about the oil industry is the lack of good news. It seems to have peaked out as well. And the future for fossil fuels is pretty bleak. Meanwhile, the shift to biofuel is rapidly accelerating world starvation. We are talking about major world catastrophes in the making and well underway which are not being talked about or worked on at anywhere near the order of magnitude necessary.
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