by Aaron » Sun 18 Apr 2004, 12:58:09
$this->bbcode_second_pass_quote('OilWatch', 'A')aron I think that's a bit of an overstatement, here's why:
The only reason why the world is using light sweet crude so readily is because it is the cheapest economical from of energy at the current time.
However, once the price of light sweet crude reaches a certain level, it makes other alternatives affordable. I.e.
Shale oil..
So let's say at a price of $35 / barrel, shale oil becomes economical to extract. The bell curve that the total recoverable light sweet crude follows, has now been drastically increased because shale oil is now economical to produce. So before, let's say there was 1 trillion barrels of recoverable light sweet crude, now there are 2 trillion barrels of recoverable oil (or maybe even more, some sites say there are 3 trillion barrels of recoverable shale oil) Doesn't this drastically change the peak?
Peak oil is based on the fact that light sweet crude is the only source of oil out there, when it isn't.
Exactly... other, less desirable, forms of oil become viable at a high enough price. Shale, Tar & sand fields are abundant, and the process of extraction is well understood and feasible. This is the same as saying that they are less efficient energy carriers than sweet crude. I agree… This margin is the real peak oil argument. Being forced to less efficient alternatives means for each percent of efficiency lost, a matching loss in capability must follow. It is simply not possible to maintain the growth economic model we have enjoyed this last century with a decrease in net energy available.
The transportation sector is a good example of this concept, as it relies almost exclusively on oil and gas as an energy source. The entire global economy is based on transporting goods and people where they are profitable. Each incremental loss of net energy returns, translate into higher commodity prices. So it costs more to deliver goods and services than it did before. The problem is that most sectors of economic activity are predicated on the current level of net energy return, and must change to accommodate any significant losses. That sounds all nice and sterile, until we equate this reasoning with reality.
Anyone care to comment on what sort of changes might be required to handle the move to a stable social model which can tolerate sharp and lasting decreases in available energy?