Tuesday, November 23, 2010

IEA: Peak Oil Was 4 Years Ago

The term "peak oil" has been bandied about for many years now.  I've referenced it myself on this blog.  But now, according to the International Energy Agency, peak oil has not only arrived, it arrived four years ago.  Chris Martenson has just written a series of articles concerning the International Energy Agency's 2010 World Energy Outlook.  I suggest reading at least part 1, if not the whole thing.

Here's the meat of the report from the IEA:

"Crude oil output reaches an undulating plateau of around 68-69 mb/d by 2020, but never regains its all-time peak of 70 mb/d reached in 2006, while production of natural gas liquids (NGL) and unconventional oil grows quickly."

Yet the IEA data is unable to account for where the oil will come from to maintain the plateau.  The report simply asserts that the oil will come from oil "fields yet to be found."

Chris has the graphs and the implications, and I suggest reading them.  But the simple matter is that for decades energy experts have been warning us that peak oil is coming.  Only now, in hindsight is the IEA acknowledging peak oil.  This means that oil is going to become considerably more expensive and more difficult to obtain.  This will only get worse until alternative energy sources reach economic viability, or oil extraction technologies make huge leaps.

Our economy, as Chris Martenson argues, is built on economic models of "infinite growth."  This infinite growth paradigm is the only way to sustain the voodoo economic policies employed by the Fed's sorcerers. Infinite growth can only happen with infinite energy.  The logic here is simple, yet so politically volatile that no one in leadership is willing to recognize the problem.

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