by Peak_Modernity » Tue 27 Dec 2005, 15:54:49
I'll take a stab at some of his points.
$this->bbcode_second_pass_quote('', 'T')he World Energy Outlook 2005, published by the International Energy Agency “expects global energy markets to remain robust through 2030. If policies remain unchanged, world energy demand is projected to increase by over 50% between now and 2030. World energy resources are adequate to meet this demand, but investment of $17 trillion will be needed to bring these resources to consumers.”
Assuming supply can be increased to meet demand, no one is going to invest $17 trillion and expect to sell oil cheaply. As I'm sure you have read, Peak Oil is all about reaching the limits of cheap and easy to extract oil. It is possible that we will use shale oil, coal-to-oil and other uncoventional sources to raise production of usable oil, but expect to pay dearly for this privilege.
He also uses phrases like "running out" or "157 year supply". These are highly misleading. For any resource it is the neccesity and rate of extraction/production that are important. Peak Oil means that at some point there will not be enough oil for everyone who wants it. This will be seen in the form of rising prices. At this point in time and for the next 5-10 years we will remain very sensitive to high oil and gas prices due to our reliance on oil for a good bit of our economy.
Think of it like this, you're driving a car with a 200 mile range on a tank of gas. You need to go 200 miles to get through the desert, but the tank is only have full. You can step on the pedal harder, but you won't make up any of the needed distance. You may find someone on the side of the road to sell you a few gallons, but they are going to get a premium for it. This is a rough example of our economy. We need to go 200 miles to avoid serious a recession or depression, but will have less than a full tank to work with. This is a strange concept to understand, because people tend to think on the extremes of running out or swimming in oil, but really comparing oil depletion to dehydration is also very fitting. If you can't have all that you need, some of the effects are almost as bad as have none.