I believe in Peak Oil. Currently, the whole theory has taken a bit of a hit lately, and certainly a lot of the doubts have been well deserved, the entire school of thought committed the cardinal sin: letting the hype get ahead of the facts. So let’s get back to the facts.
Peak Oil isn’t so much a theory as much an observation. At first it’s pretty easy to extract oil from a well. You sink more wells, and more oil comes out of the ground. But eventually you hit a point of diminishing returns. The wells stop producing as much oil as before, and over time you get less and less oil, until the cost to extract oil exceeds the profit of selling the oil. This growth, peak, and fall pattern can be seen in fields, reigons, and even national production. The problem arises if global production follows this growth, peak, decline pattern. Hence the name, Peak Oil.
To date, global oil production has been on a fairly steady march upward. But every step of that march has been getting harder and harder, and most of the marching has been done by Saudia Arabia. And unless they’ve been holding out on telling us about a major game changing discovery, Saudia Arabia’s nearly out of steps. Peak Oil proponents argue we are near, at, or just past the Peak.
The detractors argue otherwise. And they have a few good points, the biggest one being that we’ve done this song and dance before during the late 70’s. And then Gulf oil was found, along with Mexican oil, and then the biggie, Saudia Arabia. Oil shortages lead to high prices which lead to exploration which lead to more oil. Recent record oil prices have directly lead to more exploration, culminating in a wave of new finds. And although oil isn’t near the previous lows, it certainly isn’t anywhere near the record highs.
The problem with the Peak Oil critics is that they’re not looking at the future. European demand might cool, but the US isn’t yet prepared for dramatic oil usage reductions, and China and India are desperately trying to hop onto the US standard of living, or something approaching that. And that takes lots of energy and lots of plastic, both of which require oil. Lots of it.
Thankfully, we still have plenty of the stuff, and we’ll have plenty more for some time to come. Peak Oil doesn’t mean the end of the world, it just means the end of cheap oil. What that means for our future selves will probably be impossible to predict. But it will definitely be different then to good old days of 1998 ($1 a gallon for Premium. PREMIUM!!!! Good Times).
Posted by larimdame
Posted by larimdame
Posted by larimdame 

