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Page added on July 18, 2011
Peak oil now More About Demand Than Supply
We have all seen the headlines stating boldly that we will sooner or later face a crisis with the supply of oil unable to meet the demand. A new study in “peak oil” is going to question this theory and investigate whether we should not actually start to think of “Peak oil demand.”
As the world reacts to concerns about the oil price, energy security and climate change, we will see even faster advances in alternative technologies such as fuel cells and electric vehicles. The study aims to research whether or not this could result in the demand for oil starting to drop long before the supply runs out.
The multi-client study will be conducted by Kevin J Lindemer and Ricardo Strategic Consulting. It will assess the impact of alternative energy sources on the demand for oil and how it will influence users, energy producers and governments if the world could cure its oil addiction.
Those who support the peak oil demand theory will probably not agree. They say that the global population is still increasing rapidly and that countries such as China and India are growing at an astronomical rate – factors that only serve to increase the demand for oil. They, therefore, predict that we will soon be unable to produce enough oil to satisfy the growing demand – causing oil prices to skyrocket.
The study should shed some light on these conflicting views and help all of us, including the humble car owner with his used car loan, to plan for the road ahead.
5 Comments on "Peak oil now More About Demand Than Supply"
Zoli on Mon, 18th Jul 2011 1:01 pm
The flaw in the theory of peak demand is that it asumes that in the event of scarcity, prices rise, and they stay high. I have to disagree because with such an inelastic good as oil is, it takes very little movement away from the suply/demand equilibrium to make the price spike, or plumet. A price spike creates recesion, and the recesion kills demand, lowering the price. Seeing the low price again causes people to believe that it is OK to buy the gas guzler.
Rick on Mon, 18th Jul 2011 3:16 pm
This article is incorrect. The author should start reading: http://thearchdruidreport.blogspot.com/
Lee on Mon, 18th Jul 2011 8:56 pm
Aside from the fact that this business of “peak demand” has appeared many times since $100/barrel price spike that culminated in 2008 (and anyone who reads PeakOil.com, EnergyBulletin.net or other such collections of news knows that demand has already outstripped supply), has anyone else noticed how these really quite mis-informed articles always start “We have all seen the headines…”, or some other similar play on those words?
Is this is just the standard opener to the oil-industry-funded fill-in-the-blanks article pro-former that is sued to attempt to debunk peak oil?
(By the way; what a string of hyphenated acronyms!)
Lee on Mon, 18th Jul 2011 8:58 pm
Would help if I had typed “used” instead of “sued” too.
Harquebus on Tue, 19th Jul 2011 1:58 pm
The energy required to make the hydrogen doesn’t make it worth it.