Peak oil bigger problem than climate change
Wednesday, 20 August 2008 11:00am
Peak oil is a much more immediate problem than climate change, delegates at a Finsia seminar heard yesterday.
But the potential ramifications of climate change just make the problem worse, said Ian Dunlop, a former petroleum engineer who is now the deputy convenor for the Australian Association for the Study of Peak Oil.
This makes the combination of peak oil and climate change "the biggest issue the world has ever confronted, not just in a warm, fuzzy context but in what it means in a hard-edged business sense," he said.
Peak oil illustrates how vulnerable the economy is if we continue to rely on fossil and non-renewable fuels, said Dunlop.
"We have 30 to 40 years of high quality uranium ore, a little longer for oil supplies. Even the position for coal is not much better. It means the transition to a low carbon economy will be critical just to ensure we can obtain energy."
Diminishing world oil supplies also mean that as China expands its oil demands to European levels, we will need two or three Saudi Arabias to meet their supply needs, notwithstanding much of stated Middle East oil reserves figures are highly suspect, said Dunlop.
Highlighting why rising demand contrasted against falling supply is economically unsustainable, The New York Times is today reporting that oil production is now falling at all of the major Western oil companies and that they are "finding it harder than ever to find new prospects even though they are awash in profits and eager to expand".
Dunlop said this means debating the actual year we hit peak oil is a distraction. "It doesn't mean you're running out but it means you can't keep increasing demand" because the supply and production simply isn't there to meet it.
Geopolitical problems, like those happening in the Russia and Georgia, illustrate how vulnerable and sensitive world oil supply will become.
Alex Dunnin
This story was found at: http://www.financialstandard.com.au/news/view/23807
Printed: Saturday, 13 March 2010 7:53am