Commentary By Ron Beasley
I was talking to someone I know a few days ago who has worked in the exploration division of one of the major oil companies for over 20 years. She said that they all felt that peak oil had arrived about two years ago and that most of their exploration dollars were being spent to find natural gas. As a result I was very surprised to see a peak oil denier on the pages of the New York Times this morning. Michael Lynch sounds just like the global warming deniers when he says Peak Oil Is a Waste of Energy. Like the global warming deniers he simply dismisses science and nothing he says is worth quoting.
Now peak oil may be more important than anything else we discuss here because when it arrives it will be like running into a brick wall. I thought I knew about peak oil but I didn't know the half of it. The following video from Chris Martenson explains peak oil and how it relates to peak discovery. It's over 17 minutes long but well worth watching. (h/t theblogprof)
Peak oil is not as important as the point when demand exceeds supply. That's the real brick wall and it will happen soon and happen fast. It won't be just the price of gasoline. It takes a 15 barrels or more of oil to produce and transport the food for just one person to give you one example.The sudden price hike will damage the economy but the unavailability of oil will be devastating.
Update
Not even the Wall Street Journal is buying Lynch's nonsense.
On several occasions I have read about the U.S. exporting oil. Why are we exporting oil if we are having to beg to get it from the Saudi's, etc.?
ReplyDeleteThanks Kirkrrt
ReplyDeleteMartenson discusses Mexico and says while their production is going down their consumption is going up. By 2011 the two lines will cross and Mexico will no longer be an exporter.