Supurva Healthcare Group Inc (SPRV)

[davidmarkblack]

GAO Report to Congressional Requesters

Conclusions

The prospect of a peak in oil production presents problems of global proportion whose consequences will depend critically on our preparedness. The consequences would be most dire if a peak occurred soon, without warning, and were followed by a sharp decline in oil production because alternative energy sources, particularly for transportation, are not yet available in large quantities. Such a peak would require sharp reductions in oil consumption, and the competition for increasingly scarce energy would drive up prices, possibly to unprecedented levels, causing severe economic damage. While these consequences would be felt globally, the United States, as the largest consumer of oil and one of the nations most heavily dependent on oil for transportation, may be especially vulnerable among the industrialized nations of the world.

In the longer term, there are many possible alternatives to using oil, including using biofuels and improving automotive fuel efficiency, but these alternatives will require large investments, and in some cases, major changes in infrastructure or break-through technological advances. In the past, the private sector has responded to higher oil prices by investing in alternatives, and it is doing so now. Investment, however, is determined largely by price expectations, so unless high oil prices are sustained, we cannot expect private investment in alternatives to continue at current levels. If a peak were anticipated, oil prices would rise, signaling industry to increase efforts to develop alternatives and consumers of energy to conserve and look for more energy-efficient products.

Federal agencies have programs and activities that could be directed toward reducing uncertainty about the timing of a peak in oil production, and agency officials have stated the value in doing so. In addition, agency efforts to stimulate the development and adoption of alternatives to oil use could be increased if a peak in oil production were deemed imminent.

While public and private responses to an anticipated peak could mitigate the consequences significantly, federal agencies currently have no coordinated or well-defined strategy either to reduce uncertainty about the timing of a peak or to mitigate its consequences. This lack of a strategy makes it difficult to gauge the appropriate level of effort or resources to commit to alternatives to oil and puts the nation unnecessarily at risk.

Source: GAO Report to Congressional Requesters
February 2007
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
http://www.gao.gov