Change of plans, I was going to post the final part of "Thinking In Systems" tonight but April Fool's Day gave us all a prank. It was announced this week that the Ghawar oil field in Saudi Arabia, their crown jew of easy oil, has had its output greatly over estimated by the "smart people". See the Saudi's never allowed anyone to audit their production, so people involved in the fossil fuel industry have made their best guesses. Turns out they were wrong. It will take me most of the week to read up and write a good summary for the Green Wizard community on why this new is shaking up investors and why we may be in for sizable price spike in gasoline and heating oil in the next two years.
In the mean time I am going to repost a article I wrote a while back that discusses an important concept when discussing Peak Oil and that is "Return on Investment" (aka ROI).
Imagine you get a phone call tomorrow. Its from a lawyer, who tells you your Aunt, you know the one everyone in the family always called a bit crazy, has died and left you her sizable fortune. A very sizable fortune. After you take a moment and jump up and down in excitement, he then explains the conditions of the Will and you figure out why everyone thought she was crazy.
Instead of hiding all her money under her mattress, your Aunt put it into the bank. Well, lots of banks. The lawyer gives you a list and its dozens of pages long. Banks in your city, banks in the suburbs, even banks several counties over. A few in the next state. The list also has the amounts in each account, some with several thousand dollars, some with much less.
You can visit any account and take out money BUT the catch is you can only do it once a day.