Peak Oil, Schmeak Oil

Sometimes the lefties, not just the righties, out there really get under my skin with the latest in trendy energy assertions. Rooftop windmills, the evils of corn ethanol and peak oil. While there something to their positions they often leave out important factors and variables to make things look a bit worse than they probably are. This Slate article goes on a bit about peak oil in a way that sympatico with my own bias (that it's complicated and no one really knows what is going on) and I offer it for your consideration.

Does Anyone Know How Much Oil There is in the World? - Slate - 25 Jun 08

"Price is a result of demand and supply; the Wall Street Journal recently explained why it's difficult to get a handle on demand (subscription required). The supply side is just as tricky."

"Here's how arcane the oil guessing game can get. Saudi's Ghawar oil field is the world's largest; it's been pumping out oil since 1951 and holds 7 percent of the world's proven reserves. Overall Saudi production has been falling since 2005, yet the number of rigs in use has tripled since 2004. Why is that? Some analysts believe the increased rigs are intended to compensate for declining production from Gwahar. Others argue that the Saudis are operating strategically, shutting their most productive wells as prices rose and opening smaller wells to better manage supply."

Peak Oil, Schmeak Oil

Sometimes the lefties, not just the righties, out there really get under my skin with the latest in trendy energy assertions. Rooftop windmills, the evils of corn ethanol and peak oil. While there something to their positions they often leave out important factors and variables to make things look a bit worse than they probably are. This Slate article goes on a bit about peak oil in a way that sympatico with my own bias (that it's complicated and no one really knows what is going on) and I offer it for your consideration.

Does Anyone Know How Much Oil There is in the World? - Slate - 25 Jun 08

"Price is a result of demand and supply; the Wall Street Journal recently explained why it's difficult to get a handle on demand (subscription required). The supply side is just as tricky."

"Here's how arcane the oil guessing game can get. Saudi's Ghawar oil field is the world's largest; it's been pumping out oil since 1951 and holds 7 percent of the world's proven reserves. Overall Saudi production has been falling since 2005, yet the number of rigs in use has tripled since 2004. Why is that? Some analysts believe the increased rigs are intended to compensate for declining production from Gwahar. Others argue that the Saudis are operating strategically, shutting their most productive wells as prices rose and opening smaller wells to better manage supply."