by chapter1
Peak Oil holds that, due to fundamental limitations of geology, the easy and cheap oil is mostly gone, and "we" must now drill for expensive, hard-to-reach oil. "Lemon socialism" is a shorthand for "privatizing profits and socializing losses." In the case of oil drilling, it means that the drilling companies will keep the profits from the high price of oil, while shifting the cost of drilling to others. The damage to the Gulf is a classic (and tragic) example. Drilling in mile-deep waters is necessary (if we are to continue to maintain supply in the face of Peak Oil) and it is expensive. Most of the expense is due to mitigating risk. So BP and friends keep profit for themselves, while ignoring risk-- i.e., shifting it to society. In this case, the costs were paid by all of us, especially shrimp fishermen, folks dependent on Gulf tourism, etc. In a minute, I'll tell you the bad news.
continued at Daily Kos....
