future prospects

Posted on February 10, 2010
Filed Under future | Leave a Comment

redu hwy 50 car 001

From The Guardian

In the years approaching the credit crunch, whistleblowers were limited to a few insightful economists and financial journalists. Now whistles are blowing again about another grave threat to the global economy and the security of nations. They warn of an oil crunch: an unexpected crash in global production such that supply can no longer meet demand, even if China and India throttle back.

This time the warning is not limited to a prescient few individuals. Major British companies, led by Virgin, Scottish and Southern and Stagecoach, are flagging the danger, in today’s report from the UK industry taskforce on peak oil and energy security . So too are the CEOs of oil companies themselves, in the case of Total and Petrobras, and growing numbers of other senior oil industry figures, usually recently retired. Even theInternational Energy Agency is sounding the alert, in a coded sort of way.

With modern economies geared to their rivets on just-in-time supply of copious amounts of affordable oil, society surely ignores this risk issue at its massive peril.

But that is what BP, Exxon, Saudi Aramco and many other institutions of the hydrocarbon era would have us do. And theirs is the perceived wisdom. I do not know of a single company, outside the taskforce group, where peak oil is on the agenda as a serious risk issue. As for government, Whitehall’s official line is typical, as things stand: there is 40 years of oil supply, no need to worry, and certainly no crisis. To be fair, that view may be in the process of changing, in the light of recent events in the energy markets.

continue reading

Comments

Leave a Reply