I dont know if this topic has been covered before on this forum. However feel free to insert this post into such a thread if one has already been made.
Anyway I am skeptical about this whole peak oil stuff. In particular the sort of dire predictions proponents of peak oil make. Because anybody with a good knowledge of basic economics would figure out the following like I have;
As supply of oil is outstripped by demand prices rise. However those higher prices force consumers to cut back on the use of oil. This is achieved in part by means such as development of more fuel efficient vehicles. To give an example Volkswagen has just developed the XL1 which uses just 0.9 liters of fuel for every 100 kilometers. So there can be a large amount of improvement that can be made in regard to fuel efficiency.
Also sources of oil which were not economical to exploit at lower prices suddenly become profitable to exploit when prices reach a certain level. These sources of oil would be the following; deep sea, heavy oil, oil shale, and oil sands. Not to mention substitutes to petroleum would be used more extensively as well (Biodiesel, LPG and so forth).
Sure oil prices will be higher in the long run and the era of cheap oil has ended. However I dont think the dire predictions that the peak oil crowd are making will come to pass, because of what I have described above.
Well that is my $0.02 on the subject.
Anyway I am skeptical about this whole peak oil stuff. In particular the sort of dire predictions proponents of peak oil make. Because anybody with a good knowledge of basic economics would figure out the following like I have;
As supply of oil is outstripped by demand prices rise. However those higher prices force consumers to cut back on the use of oil. This is achieved in part by means such as development of more fuel efficient vehicles. To give an example Volkswagen has just developed the XL1 which uses just 0.9 liters of fuel for every 100 kilometers. So there can be a large amount of improvement that can be made in regard to fuel efficiency.
Also sources of oil which were not economical to exploit at lower prices suddenly become profitable to exploit when prices reach a certain level. These sources of oil would be the following; deep sea, heavy oil, oil shale, and oil sands. Not to mention substitutes to petroleum would be used more extensively as well (Biodiesel, LPG and so forth).
Sure oil prices will be higher in the long run and the era of cheap oil has ended. However I dont think the dire predictions that the peak oil crowd are making will come to pass, because of what I have described above.
Well that is my $0.02 on the subject.
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