The peak oil crisis: The summer ahead

Last week they began kidnapping foreign workers at an alarming pace —22 foreigners kidnapped in 36 hours— and overran offshore platforms and production ships. On Monday, the strongest militant group issued a chilling ultimatum. “All foreign and local nationals working with multinational oil companies and their contractor should vacate Ijaw territory (the oil producing region) immediately.” “All foreign embassies should withdraw their nationals from our homelands.” “Nothing can protect them --- No more hostages taking -- Any national caught shall be summarily dealt with.”

By the way, these guys have a good track record for doing what they say they are going to do. The next morning, three major oil pipelines were bombed, shutting down another 150,000 barrels per day of oil production. Total production shutdown by the insurgency is now on the order of 900,000 barrels per day. The insurgents have demonstrated that they have the capability of shutting down most, if not all, of Nigeria’s oil production.

Should this happen, we might find our imports running a million barrels a day short this summer....