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High oil prices "here to stay"

High Oil Prices are "here to stay" according to a Lib Dem MP. John Hemming, Member of Parliament for Birmingham (Yardley) is calling together a summit of geologists and campaigners to review when oil production globally will peak.

"The issue", he said, "is not 'when we run out of oil', but when the global production of oil peaks. After that point oil will no longer be priced as something cheaper than mineral water, but as an essential resource that has taken millions of years to produce, but only decades to burn. As soon as the production peaks then there will be tight constraints on what can be consumed that will get tighter every year."

"Oil is a key part of our economic structure and energy supplies. It is essential not just as an energy supply, but also as a raw material for the production of plastics and other chemicals."

Wrking with the campaign group Powerwatch and the Association for the Study of Peak Oil, he will be calling a summit of geologists and other interested parties to meet in the House of Commons to look at the question "when will oil supplies peak globally".

"I asked the government the question, ' when will oil supplies peak globally'", he said, "and they said they really did not know, but someone else thinks 2030. Even oil companies such as Chevron don't think we have that much time. There are some people who thinik the peak of supply will be next year. This issue underpins the whole of our economic structure. I am calling together this meeting so that a proper and well researched examination of the issues can occur."

"There may be temporary blips when oil prices go down, but the situation is changing to one where prices are normally high and high prices are here to stay."

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