by shortonoil » Tue 29 Apr 2008, 10:09:05
sjn said:
$this->bbcode_second_pass_quote('', 'I')'m pleased to see a few more coming to accept this aspect of depletion. There is an awful lot of resistance, I think mainly due to the gravity of the problem. Many just don't want to accept it.
There is a strong tendency to claim that ERoEI is irrelevant because oil is just a source of liquid fuel and doesn't have to be a primary energy source, that nuclear or solar (or more likely other fossil fuels) could provide the additional energy. While technically true, it ignores the system effects and the inevitable treadmill from having to constantly put more energy in, just to remain in place; energy that is then unavailable for any other activity. In fact this is where we are now. Increasing amounts of all resources are being redirected to make up for the primary energy deficit, this includes raw materials, food and water, and additional load on environmental sinks (polar ice cap loss) I did mention system effects!
Many don’t want to accept it because it requires a paradigm shift in how we view our energy supply, and our world in general. Even though contemporary economic models have been failing for the last six years with regard to energy, there are those who are still tenaciously holding on to them.
In spite of an annual 34% increase in price over the last six years, we have seen almost no increase in world production. This belies basic economic theory; as price goes up, so will supply. To compensate for this “
in your face” blatant contradiction, we have seen one ad hoc and ridiculous excuse after another paraded out as an explanation. It is the speculators, the terrorist, and of course, “above ground factors”!
Not once has anyone postulated that maybe they are measuring the wrong metric. They continue to appraise barrels of oil, like they were some kind of a sacrosanct and unchallengeable deity. Then they sit around slack faced; perplexed in the failure of their projections. Even on the front page of this forum today we see another article that tries to explain the phenomena we are witnessing. This one they call a “resulting mismatch”.
$this->bbcode_second_pass_quote('', '[')b]Even Amid High Oil Prices, Troubling Signs in Production
As oil prices soared to record levels in recent years, basic economics suggested that consumption would fall and supply would rise as producers opened the taps to pump more.
But as prices flirt with $120 a barrel, many energy specialists are becoming worried that neither seems to be happening. Higher prices have done little to attract new production or to suppress global demand, and the resulting mismatch has sent oil prices spiraling upward.
, (which I use judiciously, because the studies at this time have not yet been completed) world oil production and Available Energy decline similarly to what has been experienced in the US, world economic activity either is, or will soon begin a 4.8% annual decline. This decline will last at least a decade and will undoubtedly result in the worse depression that has ever been witnessed in modern history.
Perhaps some Abe Lincoln or Winston Churchill will arise to face this new and terrifying threat. Of course, our course may continue to be plotted by the likes of the CEOs of Goldman Sachs and J.P. Morgan. In that case, expect the very worse!