by Daniel_Plainview » Sat 29 Jan 2011, 17:17:59
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')Even the Cornucopians must admit that (1) most of the easy-to-extract and easy-to-refine light sweet crude has already been extracted; (2) the majority of what remains is expensive-to-produce heavy sour oil; and (3) over time, this trend will only exacerbate the economic viability of producing oil.
Once we head down the steep post-peak "Net Hubbert" curve, it's GAME OVER.
No, it's not "game over" if that means "DOOM" or even "doom", as you seem to be implying. (I'm a moderate, NOT a cornie).
It means oil will continue to get more expensive, and at least for a while, the price gains will accelerate. It means people will have to adapt. It means inconvenience, and LOTS of whining, I am certain. It means people will have less to spend on trinkets and having a weekly commute in an SUV of 500 or more miles.
Acting like one day there will suddenly be NO alternatives and everyone will simultaneously lay down and die, or suddenly decide to kill each other for the gas in their neighbors tanks is just silly. It's an economic problem.
Once the (painful) transition is made, this will be a GOOD thing. For one thing, if the const of living increases a lot, people will have a lot less kids and quit consuming so much stupid crap that hurts the planet.
Now, do I wish our society were smart enough to see the obvious problem coming, come up with intelligent sustainable energy policies, and DEAL with this well up front? Absolutely.
Our stupid society kicks the can down the road and struggles with MANY major problems at the last minute as a result. The decline of cheap oil is just one more example of our societal stupidity - NOT doom.
While I agree with much of your position, I merely want to stress that current Western civilization is founded upon the concept of "cheap oil" (think EROEI). IOW, the concept of "cheap oil" strikes to the very core of modern functioning civilization. "Cheap oil" is what has allowed suburbs, skyscrapers, SUVs, the Internet, fast-food & soccer moms to flourish and permeate the very fabric of society.
When "cheap oil" becomes "expensive oil," what do you think will happen to the suburbs and the inefficient buildings / skyscrapers / McMansions that have become the fabric of modern Western capitalism? These edifices of capitalism will be crushed ... which will cause real estate prices to collapse ... which will cause banks to fail ... which will cause sovereigns to fail ... which will cause fiat currencies to fail. This, in turn, will make it far more difficult for oil companies to raise the funds for exploration, extraction, refining, and distribution.