Energy Giant Shell Says Oil Demand Could Peak in Just Five Years
bloomberg.com
bloomberg.com
Overall, this should be considered a good thing.
As people convert to alternatives which are cheaper - due to renewables improving - the demand for oil in some industries decreases. Which then drives further innovation into those areas and further alternatives. In fact, this is exactly what critics of peak oil have been saying for years.
(This isn't saying demand for oil will go to zero, just that it is likely to start decreasing.)
From Wiki.
Peak oil, an event based on M. King Hubbert's theory, is the point in time when the maximum rate of extraction of petroleum is reached, after which it is expected to enter terminal decline.
This is worrying in terms of climate change because "difficult to harvest" usually means "energy-intensive to harvest." For example, tar sands require expending around 20-30% of their energy content to extract them in usable form, which means that CO2 emissions from burning that oil are effectively 20-30% higher.
If peak demand means we'll be able to leave the most difficult oil in the ground, that's excellent news.
Good note. Oil is fairly inelastic. I would say terminal velocity on that would be just before it costs the same amount of energy to extract energy. That can be converted to dollars just as well. That's a good thing about renewable and alternate energy, it erodes that inelasticity so when terminal velocity hits, we aren't all breeding horses again.
Some of the $3trn shows up as assets in pension funds and SWFs, but much of it is hiding in the balance sheets of oligarchs and middle eastern monarchs.
I'm not sure how likely/unlikely this is, but that's the theory.
https://www.theguardian.com/environment/2014/mar/06/could-fo...
Hm.
I also know that several of the small brownfields in the North Sea are being operated now at a loss, because that costs less than plugging and abandonment.
So it's perhaps not that far fetched to think that 2/3rds of current proven reserves will not be developed if the current economic situation persists.
A carbon tax would really help here to start driving down demand more to try and drive down the price more.
This is assuming that the extracted oil is burned, though, right? If a new industry emerges making, say, huge plastic spaceships, then it may still be profitable to extract all the oil we can get.
http://energy.gov/articles/hows-and-whys-replacing-whole-bar...
From some of the pentagon reports, it sounds like major wars over food and migration start breaking out at 2.5-3C, if not sooner. At 3-4C it's likely to no longer be confined to developing nations.
That may not be quite as pressing an issue for us as war and famine, but it's not the same thing as "fine".
Keep in mind though that a mass extinction is part of the process of accelerating evolution. You don't get a quick adaptation without a strong selection process.
Edit: By 'slight chance' I mean very much near zero btw. However I'm skeptic enough of climate models to know that they aren't good enough to include all the domino effects we've never seen. The Permiam-Triassic boundary saw tremendous forest fires along with abrupt methane release, and that didn't include a species actively releasing enormous amounts of fossilised carbon. I'd imagine that if a few worst case scenarios came together - finding more fossil fuel sources, burning up all of it and causing unstoppable forest fires in all large remaining forests, it could happen.
http://news.nationalgeographic.com/news/2013/13/130729-runaw...
On the specific question of evolution, major changes happen on a timescale of thousands if not millions of years. For example, despite huge changes in our environment, humans today are basically the same as they were tens of thousands of years ago.
Earth will probably return to something like an equilibrium, both in terms of climate and in terms of wildlife, in a million years or less. But that doesn't do us any good when the threat to our civilization, from climate change and ecosystem collapse, is in the next century or two.
If only there were some process by which living populations could "adapt" to a changing environment.
You couldn't get rid of complex oceanic life if you tried, no matter what you tried.
I know that I was vague with using the word 'complex', but 96% of all marine species, with only small, 'squishy' (low calcium carbonate content in bodies) species surviving, is enough for me.
It's also interesting to look at what probably caused that particular, so far most devastating extinction event.
2. After several generations nobody alive has ever seen a coral reef, a whale or dolphin. Most of the 'attractive' marine environments are heavily compromised so nobody is interested in preserving the marine environment anymore as it's mostly gone already.
3. Humans develop a global stable civilization.
4. After a million years or so the remaining marine habitats and life forms have heavily adapted to the new environment. Few to no higher animals remain that resemble their 'natural' forms. Humanity comes to regard these as vermine.
Project the above over another couple of billions of years.
Can anyone recommend sources for news/analysis from the energy industry?
The latest: http://www.jeremyleggett.net/2016/11/state-of-the-transition...
this is new and a little lightweight (don't sign up for their email, it's got some really insulting promotional stuff): http://oilprice.com/Energy/Oil-Prices/
What most petroleum companies say, as the article indicates, is that oil demand is going up for a good while longer. That's because if the idea gets around that demand is going to peak, they won't be able to borrow the gigantic amounts of capital they need to keep drilling new wells.
Alternative hypothesis: it's simple denial, much like Nokia and more recently RIM.
http://www.bp.com/en/global/corporate/press/press-releases/o...
[1]http://markets.on.nytimes.com/research/markets/usmarkets/ind...
"The Aegean Collapse has been attributed to the exhaustion of the Cyprus forests causing the end of the bronze trade. These forests are known to have existed into later times, and experiments have shown that charcoal production on the scale necessary for the bronze production of the late Bronze Age would have exhausted them in less than fifty years."
https://en.wikipedia.org/wiki/Bronze_Age#European_timeline
I don't know enough about the subject beyond what's there to say how accurate it is, but it's a place to start.
Seems like lack of tin may have been an issue keeping them from making bronze.
The fact that the price has come down in the past couple of years means that either demand has shifted down (that is, keeping the price constant, people demand less) or that supply has shifted up.
On the demand side, it's unclear to me, I'd appreciate any pointers others would have. While advanced countries get more efficient with their use of energy, emerging economies are increasing their demand as more people escape poverty.
What is clear is that the supply curve has shifted up. Both because of technological improvements in the U.S. in fracking, and due to political improvements in countries like Iran, Iraq and Nigeria.
http://energie-climat.obspm.fr/local/cache-vignettes/L500xH3...
It's a shame that the Canadian stock market is so tied to oil exports, because it means a good chunk of retirement income is tied to that value for a whole lot of people. It's quite bleak. Especially considering that oil exports as % of the Canadian national GDP is nowhere close to the % of value it represents on the Toronto stock exchange.
It has ties to fear about converting to solar and battery powered economy too fast, when more than 3 trillion dollars of debt is tied up into fossile fuel economy.
http://www.bloomberg.com/news/articles/2016-10-18/batteries-...
I'd urge you to not throw the baby out with the bathwater. I can share that I have taken life decisions under the assumption that resource depletion will be a real socioeconomic force during the second half of my life; yet you will notice that ditching my programming career and moving to an organic farm in the middle of nowhere were not among those decisions (yet).
I suspect the "decline" looks a lot like the intermittent de-industrialisation we've already been seeing. There are plenty of towns which have lost their key industry without replacement, so they're just kind of limping along. The burden of decline will fall mostly on those already at the bottom.
Careerwise, I have avoided going with the pull of migrating to our industry's big centers (the most known being Sillicon Valley), since I consider those places to be unsustainable. If I were young and single, I may have gone for a couple of years to gain a quick buck, and then get out; but I am a middle-aged father or two now, and don't think it is worth it even today to subject your family to that kind of pressure, just for the sake of being one of the cool guys.
This will not save the world at all (not that it is the world that needs any saving), but hopefully puts me and my family in a less exposed position for the consequences of resource depletion.
But even if that had not been the case, I think in spite of the very hard challenges ahead of us, there's much reason to go ahead and take on the future with a positive attitude. Not wishful thinking, but recognizing that there's both good and bad in this life. And the good makes it worth living, even if the bad makes it harder and more bitter.
It is one thing to live your life under the assumption that your every wish is going to be magically granted, and that you are entitled to as much stuff as you want. It is another to turn all crazy and suicidal over some paranoid apocalypse fantasies. I wish more people would understand there's a lot of middle ground between those 2 extremes.
But projecting oil consumption has been fairly stable. In fact, it's basically been a straight line for the past 50 years, with couple of temp spikes.
And based on that, predicting peak-demand might be a bit easier, though 5-15 year sounds overly aggressive given the fact that much of the world is under developed.
But who knows... there could be a miraculous discover7 in alternative energy (or battery tech)
Maybe monster trucks will take over as the prophecy of the film Idiocracy come true and oil stages a massive come back... you heard it here first!
Furthermore, Shell is actually well-known for its effective foresight activities (particularly in the 70s). Maybe because they switched from forecast to foresight...