So why are companies taking such risk?

Oil supplies are running out and the "low cost" reserves have long since gone.

Analysis of rise and decline of oil exploration and extraction for individual countries shows that there is a forty-year gap between the peak in oil discovery and oil extraction. It takes forty years for identified reserves to be extracted. Oil discoveries were highest in the 1970's. The number of oilfields located since then has declined dramatically. This has not been for want of trying. If the same trend holds true for the whole world as it does for individual countries, then it certainly looks as if oil production has peaked and is now in decline.

Shocks like the one caused by the BP explosion and leak will inevitably lead to higher extraction costs and higher prices. When we spend more money on oil, the less we have for everything else. This holds true for individuals and countries. If we, as individuals, have to pay out twice as much for petrol as we are now doing, we will have less to spend on other things. This will impact the whole economy.

Oil exporting countries currently use about half of the world's daily production of 85 million barrels. Because these countries have a major advantage compared with countries that import oil, their economies are going to expand and grow. As this happens, they will use a higher proportion of their own oil resources, leaving less for those countries that import oil.

So what should we be doing?

As a start we should be supporting local producers and reducing oil usage for transporting basic commodities such as food. We should be changing emphasis from global trade to local sustainability. We should be moving away from high oil dependant agricultural systems. We should be directing financial resources to create renewable energy supplies, while we are still in the financial position to do so.

Broad Bean Salad with Haloumi

Ingredients
500 grams of broad beans
500 grams of frozen peas
2 tablespoons of olive oil
3 tablespoons of chopped mint leaves
500 grams of haloumi, sliced
2-3 handfuls of cherry tomatoes
2 tablespoons of fresh lemon juice black olives
2 leaves of thinly sliced silver beet.

Method
Blanch broad beans in boiling salted water for 3 minutes. Rinse in cold water. Remove skins. Place beans, peas, olive oil and mint in a large frying pan. Cook for 3 minutes, stirring constantly. Place cherry tomatoes and silver beet leaves in a large bowl and combine with the bean mixture. Set aside. Fry haloumi slices for 1 minute on each side till golden brown and add. Squeeze lemon juice over the salad and toss to combine ingredients.

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Young broad beans
are delicious raw.
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Broad Bean Salad with Bacon

Ingredients
2 ½ cups of broad beans
3 slices of chopped streaky bacon
1 bunch of rocket
1 onion, sliced thinly
Fresh basil leaves
2 tablespoons of red wine vinegar
2 tablespoons of olive oil
1 teaspoon of wholegrain mustard
1 clove of garlic, crushed
100 grams of feta cheese
Salt and pepper to taste

Method
Cook beans in salted boiling water for 8 minutes. Drain and rinse in cold water then remove skins. Place in a salad bowl. Fry bacon. Combine bacon, rocket, onion and basil with the beans. Make dressing in a small jar with a lid. Place vinegar, oil, mustard, garlic, salt and pepper in the jar, replace lid and shake vigorously. Pour over salad, toss, sprinkle feta over top and serve immediately.