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Ziad's review
Investment Sector: Recreation Submitted by Ziad 
, President & CEO
at Blackhawk Partners, Inc
10 months ago Add Tag |
Peak Oil and its impact on our world of today
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Peak oil is the understanding that oil production follows a rough bell curve and at some point you achieve the maximum rate of oil extraction, after which production declines. As production declines oil shortages become increasingly worse over time and cause tremendous economic shocks.
My opinion is that although the concept of Peak Oil rings true in the most literally way (the cost of extracting petroleum will increase over time as the cheapest and easiest to extract reserves are depleted), the often touted economic and social repercussions are fear mongering and a result of very shallow analysis.
There are massive reserves trapped in harder to extract contexts, such as oil sands, and there are massive unexplored areas where there are thought to be large amounts of oil. Add to this the fact that there are hundreds of years worth of coal and nuclear energy. If oil gets too expensive, we use more coal and nuclear in the mid term while alternative energies catch up.
If oil was going to run out suddenly in 5 years and there were no such thing as coal, natural gas, or nuclear power then yes, there might be a pretty big social disaster. But there is coal, natural gas, and nuclear, and there is at least 50 years of oil too. As is almost always the case, the alarmists are either idiots or opportunists.
Your thoughts?
My opinion is that although the concept of Peak Oil rings true in the most literally way (the cost of extracting petroleum will increase over time as the cheapest and easiest to extract reserves are depleted), the often touted economic and social repercussions are fear mongering and a result of very shallow analysis.
There are massive reserves trapped in harder to extract contexts, such as oil sands, and there are massive unexplored areas where there are thought to be large amounts of oil. Add to this the fact that there are hundreds of years worth of coal and nuclear energy. If oil gets too expensive, we use more coal and nuclear in the mid term while alternative energies catch up.
If oil was going to run out suddenly in 5 years and there were no such thing as coal, natural gas, or nuclear power then yes, there might be a pretty big social disaster. But there is coal, natural gas, and nuclear, and there is at least 50 years of oil too. As is almost always the case, the alarmists are either idiots or opportunists.
Your thoughts?
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