Could peak oil again be rearing its ugly head?
The idea of peak oil has mostly been forgotten thanks to optimistic reports by the International Energy Agency (IEA), note that the IEA is different than the EIA, and I think most people don’t realize that the what the IEA tries to do with its annual reports on global energy outlook is present the most hopeful picture possible. If ever there was an organization that looks at things with rose-colored glasses, the IEA is it, yet most people don’t realize this. They just see news stories saying “The International Energy Agency says the US is poised to become the next Saudi Arabia of oil production” and think that because the IEA says it, it must be valid.
People now seem to think that hydraulic fracturing or “fracking” will save us. The problem is oil from fracking is still much more expensive to produce than regular oil that’s already in liquid form. The world is still dependent on conventional liquid oil, and continuously replacing this cheap normal oil with expensive oil from fracking is not a solution. Obviously you can’t keep replacing something cheap with something expensive without running into problems.
I also recently read that China is now consuming nearly 11% more oil than it was at this time a year ago.
I have been following the peak oil communities and forums since 2005. I have seen over this time that when oil prices go up, more people become interested in peak oil and the forums become more active. When oil prices go down, people seem to forget all about it.
With oil prices currently over $106 per barrel and with the possibility of more inventory drops to come, could peak oil soon re-enter the spotlight?
