On the brink of a global collapse

Recently, I had the opportunity to watch a documentary called: Collapse (2009). It was a detailed discussion about the topic of “peak oil”. Peak oil is defined as the point at which 50% of all the oil in the world will have been consumed.  Not only that oil will run out, but the supply of oil can cause a major spike in prices as seen below in 2008. The effects could be devastating.

http://en.wikipedia.org/wiki/Oil_prices

The documentary presented that the amount of oil produced is directly related to Earth’s population. In other words, its similar to the supply and demand system.  If you take a look at the article/chart by clicking here you will see the correlation. With an ever growing demand for oil and the products it supports, we put ourselves at  risks for inflation or even a global crisis.

This article here, on a looming food crisis, provides a  wake up call to supply chain professionals. What if a major spike in oil prices occurs and all of a sudden suppliers are raising prices, or even worse, unable to continue operations ?  Considering that most products we consume are made thousands of miles away and the  fact that oil is running out or can become very expensive in the future should not  be ignored. Even if we are a hundred years away from the end of oil, we should think about moving manufacturing and food production closer to home.

 I am aware of the lack of credibility Wikipedia has but if you would like to do some quick reading on peak oil it can be found here.

About Adam Galloway

Making more environmentally conscious purchases is one of the greatest powers we have in curbing wastefulness.