This particular chapter takes a more detailed look at the various oil demand projections by comparing each organisation’s take on the main economic forces that shape their final numbers. Despite the huge uncertainty, there is near universal agreement on some of these forces. But opinion is divided on the biggest question of all – will supply be able to meet demand.
Posts tagged "Economy"
Peak Oil Files – 4 – Future Demand
This chapter looks at the recent history of the many organisations that make energy demand forecasts. Their track record has a lot to be desired but understanding the huge uncertainties involved highlights just how easy they are to get wrong.
Peak Oil Files – 3 – In High Demand
This chapter attempts to cover the last 150 years of oil consumption with the aim of discovering the main economic forces that have helped shape how and where oil is used today. By understanding these forces we can begin to understand how future oil demand will unfold.
Peak Oil Files – 2 – Energy Security
This chapter attempts to explain why oil depletion is not simply a problem of “will we run out” but rather a more complicated supply and demand problem concerning energy security. The size of the tap is more important than the size of the tank.
Peak Oil Files – 1 – The Importance of Oil
This is the first chapter in an in depth, multi part, info-graphic based series that attempts to explain all the ins and outs of peak oil, why it is inevitable and what is likely to happen in the coming years. It is intended to be much like a book with separate, complimentary chapters that help properly educate people on all the ideas and issues surrounding the topic so that whoever watches will have a good enough understanding to be able to make some sensible decisions/comments. The emphasis is on “properly educate”, I want to help create a definitive guide that people can turn to when they want to learn about this incredibly important issue.
This particular chapter attempts to explain why oil is the lifeblood of today’s modern economy and how any major fluctuations in oil price can expose the many inherent weaknesses in this globalised system that feeds, clothes and houses us.
12 year old Canadian Victoria Grant explains the Debt Crisis
World Oil Supply Debate – ASPO & John Hofmeister
An excellent debate between Dr. Tadeus Patzek (Chair, Petroleum and Geosystems Engineering, University of Texas – Austin, ASPO USA Vice President) & John Hofmeister (Ex CEO of Shell, Founder of Citizens for Affordable Energy) covering the topic “The World Oil Supply: Looming Crisis or New Abundance?”.
Despite the debate there was much agreed upon, largely that global trends, such as growth in demand from China and India, will force oil prices upwards and that current US energy policy is inadequate in addressing this problem (but agreeing on the what the future policy should be is another story).
Jeffrey Rubin On Why High Oil Prices Stop Growth
This almost 30 minute interview from In Conversation with Allan Gregg economist Jeffery Rubin talks about his book “The End of Growth”. His basic thesis is that high oil prices (100+ a barrel) will cause economic growth in the developed world to flat line (while China and India will slow to 4-5%) and the world is stuck with high oil prices because the marginal barrels being produced from the Canadian oil sands and the US light tight oil need these high oil prices. Basically it’s a catch 22 situation, to have traditional economic growth rates you need enough cheap oil, but to have enough oil we need to develop expensive sources and for that we need to have high oil prices. It’s basically a continuation of the energy return on energy invested (EROEI) argument.
But Jeff argues that this situation will have many silver linings. The higher transport costs will reverse the trend of globalisation and make local industry more competitive. It will also force us to have better urban planning and higher population densities that is a characteristic of the more livable world cities. The demise of the suburbs and high food prices will provide an economic incentive to turn much of this prime agricultural land back to the purpose they were originally used for – farming.
The Great Disruption – Paul Gilding
I finished reading Paul Gilding’s book The Great Disruption earlier today and I believe it is the most important book I have read since Tim Flannery’s The Weather Makers and would heartily recommend both. In the absence of the book I have found a video of a 30 min talk Paul gave to the World Affairs Council (with another 35 mins of Q&A). Or you can view the abridged 16 min version at the bottom.
The main ideas of the book are that the environmental movement has failed to cause a cultural change that will enable us to take pre-emptive action and avoid the serious impacts of climate change and resource depletion. Despite decades of effort, the world is still in denial. But when looking at human psychology and serious world events this is not actually surprising. As Paul argues – we are slow, but not stupid. The obvious prior example is World War II. Hitler and the stirring of Germany was not a new idea when war was declared in 1939. Prior to that there was much denial about the real threat of Germany, most notably the political policy of appeasement. But once war was declared things changed remarkably quickly and policies and achievements that seemed impossible before all of a sudden happened. Paul believes we are in much the same situation and it will take a great deal of climate pain for the world to wake up from its state of denial. Once this happens the world will go to war decarbonising our economies and it will happen at a pace that seems incomprehensible now. Paul argues that this will happen because there is no other choice. This is the key problem now, there is a choice.
But the story doesn’t end there. Paul argues that the climate problem is not the base problem, but the symptom of a much larger issue – the worldwide pursuit of endless economic growth on a finite planet. The economic model on which we base our societies is flawed and at some point needs to change to a steady state economy. Again this is not a new idea, it was acknowledged my many of the fathers of economics. But listening to politicians of today, the mantra of growth is so firmly embedded in our attitudes that it will take many years of failed growth for the idea that we have reached our planetary limits to sink in. While the transition will likely be unpleasant, the destination of an economy that has limits on the resources it uses and the pollution it produces is a positive one. It will mean a redistribution of wealth and a more equitable society. Despite the commonly held view that more money equals happiness (true only if it pulls you out of poverty), research shows that more equitable societies are much healthier societies. It could mean that advances in productivity translates into less time working.
One can argue that the book has a slightly optimistic outcome, one where we are successful in meeting the climate challenge. We could fail, just a few different decisions taken in WWII might of resulted in the citizens of the UK saluting the Fatherland. It does gloss over the difficulties to come. But (again as Paul touches on) if we are to be successful in meeting the upcoming challenges we will have to be outwardly positive and optimistic even if we sometimes inwardly doubt ourselves. It is equally incorrect to assume that society will just collapse without a fight and we are often pessimistic of what we can achieve when we really put our minds to it.
Where the truth lies I don’t know, but this book has articulated many of the feelings I have on where the world is at. You can argue about the details but the underlying ideas in the book are spot on. It is an important book as it has helped me come to the realisation that those of us not in denial need to spend less time fighting those that are (as the evidence will become overwhelming) and more time preparing for the great disruption.
I urge you to buy the book The Great Disruption. The link goes to amazon so you have the most amount of reviews to read, but please try and buy from your local bookstore (unless you have a kindle/ipad).
China, Climate Change, Climate Destabilisation, Climate Science, Economics, Economy, environment, fossil fuel, GDP, Global Warming, Growth, Paul Gilding, population, Renewables, sustainability, VideoDoes Civilization Have a Promising Energy Future?
This video taken from Wonderfest 2008, Festival of Science poses the question “Does Civilization Have a Promising Energy Future?” to a series of speakers including the now US Secretary of Energy Steven Chu who moderates the panel. While there isn’t much new (at least for me) in this talk it is an excellent round up of the general issues facing energy and climate change today. In particular there are some good descriptions, including perhaps the best climate change metaphor I have heard to date (which I won’t spoil, watch the first 10 mins for it). So thank you Dr. Chu I think I will have to steal that one.
Speakers include:
Steven Chu (mediator) – Nobel Laureate & Director, Lawrence Berkeley Lab
Dan Kammen (conservation) – Professor of Energy Resources, UC Berkeley
Mike McGehee (solar) – Assoc. Prof. of Materials Science & Engineering, Stanford,
Lynn Orr (carbon capture) – Professor of Petroleum Engineering, Stanford
Per Peterson (fission) – Professor of Nuclear Engineering, UC Berkeley