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Home » Environment

Does Peak Oil exist?

Submitted by on September 23, 2010 – 6:00 pm 4 Comments

Car free day in Wellington NZ was 22nd September

I’m still searching for the answer to the (other) big question:
Does Peak Oil exist?
If I’m going to try and convince others within my community to make plans for an alternative future without oil, I need to be really sure myself.

If I was to make up an answer using my own logic I would say: Yes. Why not? Because, after all, the whole world isn’t filled with oil, it’s only found in little pockets, right?  It is a limited resource.

The chap who first came up with the theory was very good at maths.  He did a lot of research, statistics analysis and some pretty serious thinking before he came up with this curve.  Not to be confused with oil depletion, M. King Hubert created this model in 1956 to predict that between 1965 and 1970 the United States would reach peak oil production.  He was correct.

Quite frankly, I wish they’d stop finding more.
No, I don’t want the world to spiral into some sort of economic nightmare but I wouldn’t mind if it made people think twice about using their car, myself included. I drive a Toyota Dinosaur (the grandad edition). A diesel, which, despite its age and size is surprisingly economic to run. Mostly because we tend to drive like grandads- or, to use the correct terminology, we use hyper-miling techniques- correctly inflated tyres, careful acceleration and deceleration etc. Or we don’t use it at all and take the bus/bike/feet. But for me to arrive at the decision of using alternative means of transportation I’ve usually thought more than twice- it’s taken a whole week of planning!
But that’s just us.  If you were to glance out onto our street on any one occasion you’d see that more than half the cars parked there were 4WDs.  This would lead you to believe that outside of our street, the roads are unpaved.  (After the recent earthquake, you wouldn’t be far wrong, but that’s not the point!) There has been only two occasions in my life when I have thought about owning a four-wheel-drive. Once, in 1992 after The Big Snow declared a day off for all Christchurch citizens when our streets became unpassable unless you had a 4WD, and the other time when my wee stationwagon got stuck up to its gumboots in mud and I had to be towed out by a Landrover. (I wasn’t thinking clearly on this occasion, obviously).    Of the 4WDs parked on my street, very few of them appear to have ever gone ‘off road’- so what’s it all about?  Are these folk all advocates of Climate Change and Peak Oil awareness working on the theory that the sooner it’s all used up, the sooner we can do something else?

The problem is, of course, that it’s not just for cars that we seek more and more oil.  Almost every aspect of our modern lives has developed since the discovery of oil.   We can do without plastic, we could do without a lot of cosmetics and we really could go back to using old methods of manufacturing; in New Zealand we really could eat locally and seasonally produced food and not really ‘go without’.  But what about medication?  What about technology?  Late night discussions have come up with reasonable theories on how to produce enough gas to cook on, but my shiny new computer is made from questionable materials and it has definitely accumulated a few miles in getting here-  I can’t do without it!  And seriously, I don’t think we can fix it or upgrade it using number 8 wire!

I know this is a good news website, and I seem to be painting a pretty dark picture here.  But, it’s not all doom and gloom.  What I imagine is a very positive future, a time when folk slow down and take time to do things that are worth while; when we relearn the skills that were cast aside in the last two generations.  Wind the clock back 20 or 30 years- cars were fewer, we all knew our neighbours (and traded with them over the fence) and photo albums were filled with images of kids all wearing the same jersey, year after year.  There was nothing wrong with that!

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4 Comments »

  • Rimu says:

    Some people can get confused about peak oil, if they look only at the size of oil reserves (“what, only half of it has been used?? heaps left, then!”) or at the idea that if the price is high enough then previously uneconomic deposits will become valuable.

    The problem lies not with either of those things – it’s about the rate that reserves can be turned into usable oil (hint: tar sands, etc is very very slow even there is a lot of it) and the amount of energy required to get access to the new energy. If more energy is required to get to the new energy then it’s a loser, no matter what the price of a barrel of oil is.

    Corn ethanol when grown in the USA, for example, yields roughly the same amount of energy as was used to grow, fertilise, transport and distil it – the only reason it turns a profit in energy terms is because of a generous subsidy in the form of readily available oil. Without the oil ethanol yields no net energy so it’s a waste of time. Corn ethanol in the US (Brazil has more sunlight, so it’s a different game) is one of the worst examples of this, but other sources of energy, while better, are also relatively inefficient compared to oil gushing out of a convenient land-based hole. Drilling in deep-sea arctic, say, is expensive not just in money terms, but in energy terms as well – for every barrel of oil that is extracted, much more oil needed to be burnt to get it than in Saudi Arabia. More on this http://en.wikipedia.org/wiki/EROEI

    The Deep Water Horizon rig that sank in the gulf of mexico had 700,000 *gallons* of diesel in a tank on it. Oil rigs don’t refine oil into diesel – it was just there as the rig’s energy source.

    Physics beats economics. Talk to people about the physics and the geology, not the economics/price.

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  • David Laing says:

    Another economic issue which is relevant is that demand for oil continues to rise, while the volume that can be supplied to meet that demand is either static or (if/when peak oil is reached – the greatest volume of oil that it is possible to supply) falling.
    While the demand for oil is very inelastic (an economic term which means that as the price goes up, the demand only reduces slightly), many people fear that there simply will not be oil around at the crisis point. (When more people want oil than there is oil available).
    This is because of it’s importance as strategic resource, which means that powerful countries will simply take what they “need”, and prevent others from access to ANY supply.
    As our entire economy runs on oil (food, medicine, clothing, plastics, transport, electronics etc etc), this is the point of potential huge (catastrophic) economic repercussions.

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  • Rebecca says:

    Great comments & v accurate. I’m very much against the idea of using corn (or other food crops) to create fuel for cars (etc)- why not just eat the corn & cycle there?!
    These are facts: I believe you, you believe you, but what can we do to convince the frequent-flyer-collecting folk?

    (Have you seen Al Gore’s film?- great arguments there too, till you see him in his little airplane, jetting about…)

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  • Denis Tegg says:

    I have started a blog on peak oil from a New Zealand perspective, including a list of reports and resources from credible sources. Good place to start ?

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