The Most Important Thing You Don't Know About Peak Oil (Mindfood)
Thursday, March 17, 2005 15:14
By now, most people who have been paying attention probably realize that Peak Oil is upon us, even if "peak production" hasn't technically been reached yet (due to the fact that increasing demand is already on the verge of outpacing supply). From here, gas prices keep going up. Of this, I no longer have any doubt.
What I have doubted are the predictions that it will be accompanied by a cataclysmic crash in which the world suddenly turns upside down and civilization as we know it goes bananas. Why not a gradual (though still painful) transition to other energy sources and/or more sustainable ways of living as people adapt over the span of decades? This post does do a good job of stating the logic as to why a more drastic version could happen. Basically, it's not the oil itself that would cause a sudden collapse, but the panic reactions of countries and masses of people when realization sets in.
Should the oil markets themselves begin to 'connect these dots', then all our lives are going to be impacted violently and immediately. The commodity traders for various interested firms live solely by anticipating conditions and events, not by debating them and verifying them. The old mantra is, you "buy the rumor, sell the news". This is the reason you'll never see "Peak Oil" covered by a respected media outlet. Because as soon as it is recognized that for all practical purposes the situation is already upon us, then a fast and viscious "resource grab" will be initiated. The price of oil in the markets will begin to rise dramatically. This will initiate a circular hedging / hording mentality in large end-users, governments, and multi-nationals. This will then have a myriad of devastating effects, but all average Joe Consumer is going to notice is that the price at the pump will experience a brief and dramatic blip upward, gas lines will form for a short time at the corner-stations, and then suddenly the corner gas-stations will go dry altogether. [...]
If this scenario sounds over-dramatic, keep in mind that what I'm talking about is a dawning recognition of something that many analysts have already come to realize: that the "oil grab" is in fact already on, that it's not a temporary 'bottleneck' or passing 'shock', and that the losers in this game will not survive. A global game of 'blind man's bluff' is underway, with all the players pleading ignorance of the issue for as long as possible so they can get their pieces in place... all the while anxiously watching for the first itchy-trigger finger that's going to set the whole thing off. [...]
The world powers are positioning themselves for war. The war is over who can take the most oil.
And a few words of wisdom for those of us who may think we'd like an apocalypse...
Also, those who secretly long for the coming collapse will be in for a shock. The initial oil shortage, when it does come, will certainly be a serious inconvenience, but the events which proceed after that are going to humble us all to the core.
by Zan Lynx (2005-03-18 11:45)
People need to realize that America doesn't actually need foreign oil. We've got plenty in Alaska. Nature up there is nice and all, but oil drilling won't destroy all that much of it. The benefits outweigh the costs. Anyone who really wants to preserve nature instead of human needs should take themselves out of technological society and live like the Amish, or be totally hypocritcal.
We've also got oil shale which can be mined like coal. That's probably more environmentally destructive than oil drilling in Alaska, but we've got it.
And finally, we should change power generation to nuclear plants.
For transportation with minimal oil use we can use either nuclear powered engines on trains or use electrical power from nuclear generation at a power station. As oil prices rise, we'd need to move goods by train instead of truck and then use electrical powered trucks to deliver from the train to end-users.
But for America what we should do immediately is open drilling in Alaska and leave the Middle East to Europe and China. Then we should build a hundred or so nuclear power plants.
I doubt the scenario described by that article will happen. The US would go into oil rationing and we've got the Strategic Reserve to buffer any drastic dips in supply. Once oil rationing starts you can bet environmentalist objections will cease to matter.