The energy watch group has released a new paper on global oil supply the conclusion of which is quite grim.
The conclusion of the paper basically says it all the end is nigh and most agencies dealing with energy are not admitting the truth.
The major result from this analysis is that world oil production has peaked in 2006.
Production will start to decline at a rate of several percent per year. By 2020, and even more by 2030, global oil supply will be dramatically lower.
This will create a supply gap which can hardly be closed by growing contributions from other fossil, nuclear or alternative energy sources in this time frame.
The world is at the beginning of a structural change of its economic system. This change will be triggered by declining fossil fuel supplies and will influence almost all aspects of our daily life.
Climate change will also force humankind to change energy consumption patterns by reducing significantly the burning of fossil fuels. Global warming is a very serious problem. However, the focus of this paper is on the aspects of resource depletion as
these are much less transparent to the public.
The now beginning transition period probably has its own rules which are valid only during this phase. Things might happen which we never experienced before and which we may never experience again once this transition period has ended. Our way of dealing with energy issues probably will have to change fundamentally.
The International Energy Agency, anyway until recently, denies that such a fundamental change of our energy supply is likely to happen in the near or medium term future. The message by the IEA, namely that business as usual will also be possible in future, sends a false signal to politicians, industry and consumers – not to
forget the media.
So we have supply dropping by several percent while demand is growing. There is little to no excess capacity in the system and western governments are doing nothing to prepare or brace us for the impact.
This really makes you wonder what the people at Export Development Canada have been smoking Oil prices are not going to weaken and unless the Bank of Canada torpedoes the interest rates a strong Canadian dollar is the new norm. The Gov the media continues to sing their happy tunes like Nero while modern society burns, (or is that, stops burning!)Recommend this Post
Wednesday, October 31, 2007
Posted by Kubera Jones, AKA several other guys. at 10:21 AM