Oil Colappse

In mid 2008, we see the raising of oil price. Almost $100/barrel on wall street, and in Indonesia, gasoline price is Rp.6000/ltr. Then for the chain reaction, every price are climb up, rice, vegetables, fruits, bus, taxi... then in the end, everything is expensive!!!. it also became more worse condition with exchange rates of Rp Vs $..!.

first, let we see the sort history of oil. Oil has been used since antiquity; for example Herodotus recorded that asphalt from a nearby river was used to construct the walls of Babylon.

However, the first modern oil well is usually traced to Sir Edwin Drake in Titusville, Pennsylvania in 1859. The Industrial Revolution was already in progress, fuelled by coal and driven by the steam engine. But then in the 1860s, a German engineer found a way to insert the fuel directly into the cylinder inventing the Internal Combustion Engine, which was much more efficient. At first, it used benzene distilled from coal, before turning to petroleum refined from crude oil, for which it developed an unquenchable thirst. The first automobile took to the road in 1882 and the first tractor ploughed its furrow in 1907. This cheap and abundant supply of energy changed the world in then unimaginable ways, leading to the rapid expansion of industry, transport, trade and agriculture, which has allowed the population to expand six-fold in parallel. These remarkable changes were in turn accompanied by the rapid growth of financial capital, as banks lent more than they had on deposit, confident that Tomorrow’s Economic Expansion was collateral for To-day’s Debt, without necessarily recognising that the expansion was driven by an abundant supply of cheap largely oil-based energy.(adopted from Streetswiki).

So, lets face it. our life connected with oil, car, airplane, boat, even internet are need an oil. without oil, we die..!. every aspect of life need oil, today, oil become major issue on world, even for a war (Iraqi wars or dessert storm campaign). Oil is lord and we are his slave!, each people even country fight for it, from north pole to south, from Venezuela to middle-east. And of course Indonesia too. But now, the condition be reverse, economist predicted, with the high of oil price, revenue are good, but they are wrong. oil is not renewable resources, but nonrenewable ones, its limited. Economist say, give more investment to oil exploration, then harvesting, but the real condition is oil field on the world are rare and limited, not every place have it. Indonesia in 60s, is the rise of oil age, Pertamina become oil icon, but now, oil age has pass away. For fulfill domestic need, we import the oil from foreign. We produce oil but we cant fulfill it. Indonesia is one of greedy consumers of oil.

Now, we face the oil-down. The advanced and improvement of oil technology are fast right now, but the oil field are limited. in few years letter the oil produce become lower, but the needs are high. It will be catastrophic for the world if we dont realize. We should be change it right now. For me, it only two way to resolve it, first, find and research a new resources to change the availability of oil or second, squeeze oil from coal (coal-liquidfaction) and oil-sand for extended oil age.



P/S :
1. Oil is refer to Petroleum
2. For further info, see.
3. Pic kiddanap here.