by Grasshopper » Thu 21 Oct 2004, 15:50:00
After global oil production starts to decline, there will be economic adjustments as the price rises, and availability dwindles. I know many people who post here do not believe there is much hope, but I think our inventiveness will manage to bring us back from the brink. I think the "Mad Max" or "Olduvai" scenarios, or even a return to 18th century type technology are most unlikely. Oil companies will find ways to extract higher amounts from most reservoirs because there will be a strong incentive. The reserves of oil wells are calculated to an economic limit, which will be extended as the price rises (to close to the energy return; the ultimate limit). In the meantime, the effect of oil prices will encourage use of alternative fuels or sources of energy (and our present economic system will give us a better chance of success at this than any centrally planned one).
Most importantly, people will be inclined to use less. As long as oil is cheap, it will be wasted, the time is coming when people will think twice about driving anywhere, and eventually probably not think of driving at all, but take mass transport instead (this is where planning has to take place - making urban and intercity transit a low energy per person proposition). Intercontinental travel would become very expensive, and might revert to surface rather than air. I think people who believe that oil will peak, and who do not want chaos, should be investing in renewable energy infrastructure, or in ways to extend ultimate oil extraction so that disruption is minimized.
Possibly law enforcement will be more important during the first shock because some will believe they are being gouged, and that it's all a big lie. Punishments for rioting and murder might revert to execution or become much harsher than now if lawlessness threatened to endanger a lot of people. I think you have a right to protect yourself from losers.
I hope no big wars erupt (fighting over the scraps, so to speak), but by that point it should be apparent to world leaders that the dwindling return would not be worth the awful waste that is the result of all-out war (not to mention small wars).
Buckminster Fuller said many years ago, that we were endowed with our fossil fuel reserves so we could build a technology that could supersede our need for them. I believe he was an optimist, but I guess I am too. I think innovation in the democracies will help us get past the oil peak safely. If you don't think so, you're welcome to dream of your own future, but in the meantime appreciate the benefits of ridiculously cheap oil.