Wednesday, November 15, 2006

Contra "Peak Oil"

MSN also carries a Reuters release of a study from Cambridge Energy Research Associates attacking the simplistic application of the peak oil concept. From the release:

"Cambridge Energy Research Associates said in a report that the world has some 3.74 trillion barrels of oil left -- enough to last 122 years at current consumption rates and triple the amount estimated by “peak oil” theorists."

snip

"'Oil is too critical to the global economy to allow fear to replace careful analysis about the very real challenges with delivering liquid fuels to meet the needs of growing economies,' said Peter Jackson, director of oil industry activity for Cambridge, a Massachusetts-based consultant to the oil, natural gas and electric power industries.

The said the peak in global daily oil production will not come before 2030 and will be followed not by a steep decline, but rather by an “undulating plateau” of ups and downs in output before a gradual dropoff, according to the report.

Jackson said the main flaw in “peak oil” theory is that it fails to account for exploration, technology, rising estimates of the size of existing fields and geopolitical shifts."

I believe Cambridge is the think-tank that Daniel Yergin is associated with and he has a great deal of credibility.

RTWT

1 comment:

Matt Mullenix said...

I can hear prices falling as we speak!