How fragile our existence really is

Last week, two unrelated events in Ontario Canada occurred at approximately the same time:

1. CN rail workers went on strike
2. There was a huge fire at an Imperial Oil refinery

The net effect of these two unrelated events, are estimates of upto 1/3 of the provinces petrol stations having been closed, rationing of gas, and a 20% increase in purchase price in essentially 1 week.

Analysts are saying it is a combination of additional factors that has caused this: hard winter weather - the frozen St. Lawrence river (in ice-free conditions, oil could be shipped in); the rail strike just compounded the problem, and the low amount of oil inventory kept on hand (i.e. reserves by fuel companies) because it keeps costs lower for petrol companies.

What it illustrates, I think, is how fragile our existence is. Ontario is a province that relies heavily on gasoline for transport (ultimately employment, since most Canadians need a car to get to their jobs), heating, and energy production. Practically the whole economy is based around oil.

Most of the world's oil is produced in countries with unstable politics: Russia, the middle east, South America, Africa -- all major oil producers, and almost all with unstable political climates.

I am a betting man (mostly through world stock markets - which have taken a 10% tumble as of yesterday, which will undoubtedly further fuel political problems); I would bet Oil is in big trouble, and that means Canadians are in for a rough ride.