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The huge impact of the energy price on every economic transaction is widely unrecognised. This is a huge problem. This lack of knowledge is also the reason that policy makers don't see that the times of cheap oil are over. There plenty of oil left, but it's not light, sweet and close to the surface. It deeper than ever (expensive exploration), heavier in structure and/or more sour than ever (expensive refining to remove the get the right products and/or remove the high sulphur contamination). Cheap oil is over. And only a few policy makers see this. Lord Hunt in the UK and several USA senators are positive exceptions. Why is energy its impact and availability so less disclosed and by this less discussed? The reason is that we see the oil industry as leading opinion maker on this subject? Does anybody believe that the oil industry would stimulate the transition to a new fuel less (as in: renewable) energy model? Will the butcher tell us to become a vegetarian? Will the goose advice the traditional Christmas diner? We're just na´ve. Beyond any level. The knowledge on our energy system and it impact and perspectives is as good as we had knowledge on the financial system before 2007/2008. We're just that kind of people who likes to hit the wall. We hate GPS navigation in economics. Both in finance and energy. We trust the sector as we think that's convenient. History (2008/2009/2010) has showed that sector based mono type knowledge leads to collapse of the sector and that this specific sector takes everything down with it. We need independent research, we need independent thinkers/researchers, we need less mono type media, we need media diversity, we need political diversity. We needs knowledge. Independent knowledge. Otherwise we hit the wall also the energy wall (like we've hit the credit wall) without knowing what's happening. The DOE (Department of Energy) of the USA has asked in 2005 to R.L. Hirsch to head a research on the need for time energy transition. This were the two famous Hirsch reports of the DOE with content like "Six Major Factors in Energy Planning". Hirsch emphases very strong that after society at it whole sees the needs for a new energy system, that the actual transition will take at least 10 and probably 20 years. We most stop with giving any the oil industry any credibility at all concerning the subject of PeakEnergy. For exactly the same reason we should not trust the medicine industry regarding health promotion programs. For the same reason we should not ask the financial industry to regulate itself (as that brought us into deep trouble), we must not ask the oil industry to draw our future perspectives (as that will bring us into deep trouble). We must stop being na´ve to the bone, just to cover our laziness in independent thinking and sector independent research. Each nation should realize a Ministry of Energy as soon as possible (as in: operational before the end of 2010). All financial media should list the prices of all energy commodities each day. Just like schools needs to educate on functioning and impact of the financial system, the should educated on the functioning and impact the energy system. Each elementary school kid should have an energy education kit as soon as possible: they will talk at home on the subject. It their future very much. They deserve the same wind fall we have had. Any Chamber Of Commerce should preach loud and clear to it's business members: cut on energy use, than your operations will stay in profitable. Any Minister of Economy and every Minister of Finance also (just to save the economy and by this the governmental funding and by this the governments). First we need to see the actual situation, not the historical, nor the wannabe situation. For readers: download and read the Global Resources Analysis and the Global Future Analysis on For viewers: just take 15 minutes to watch this very compact and impressive video on the interaction between energy, finance and economy Let's not repeat our passive attitude on finance again regarding the credit crisis. That passive attitude regarding our financial system has cost us all (also the financial industry) a lot of wealth and the damage of it is not even started yet, although the people wishful thinkers, with only historical and no structural change data already shout of the roof tops that the problems are over. We will see nations and currencies default and each default will lead to more defaults. We need knowledge on energy impact and on energy its actual status. Even manufacturers don't know the energy coefficient of their products, by this they don't know the further cost price of their products and by that they don't know the further market position of their products. Energy is Unknown is a very valid statement.

Author: Gijs Graafland

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