Congressman Roscoe Bartlett [R] in the video above addresses the US congress on the liklihood that we have hit peak oil.
Congressman Bartlett has been banging this drum since 2005 but he received an unlikely ally in the International Energy Agency yesterday! The IEA is not known for being alarmist and is typically extremely conservative in these matters however yesterday’s Medium-Term Oil Market Report from the IEA contained some interesting nuggets which suggest that they are coming around to the “Peak Oil is here now”, way of thinking.
Nobuo Tanaka, Executive Director of the International Energy Agency speaking at a press conference at the World Petroleum Congress, emphasized that market fundamentals were the main underlying factor behind high oil prices. “OPEC production is at record highs and non-OPEC producers are working at full throttle, but stocks show no unusual build. These factors demonstrate that it is mainly fundamentals pushing up the price,” he added.
In other words, no build up of stocks means it is a simple case of supply and demand, not speculators, which is causing the current price increase.
This is not good news.
The report goes on:
Over 3.5 mb/d of new production will be needed each year just to hold global production steady. “Our findings highlight again the need for sustained, and indeed, increased investment both upstream and downstream — to assure that the market is adequately supplied,” stated Mr. Tanaka.
But figures for new production have been falling year-on-year, never mind increasing 3.5mb/d.
Ok, so if we say peak oil has arrived and we are never again going to see a barrel of oil go below $120 per barrel (in fact it will trend ever upwards over time), just what are you going to do now that you have that information?
Will you start an efficiency drive in your company? Remember your financial accounting – saved overhead goes straight to the bottom line!
Will you buy a hybrid car? Will you install solar/wind generation capacity at your place of work/home? Will you go vegetarian?
We are headed into challenging times but for people and companies who make the right choices, there is, as ever, money to be made!