CERA Claims Its Latest Analysis Debunks "Peak Oil" Theory

[Administration Robot]

Claming that the "Peak Oil" theory is based on faulty analysis, Cambridge Energy Research Associates (CERA) has announced that their latest analysis shows that world oil reserves are actually three times larger than Peak Oil theory backers have suggested. If true, this would be welcome news but we at Practical Wheels still think that North Americans should be buying more fuel efficient cars. Oil is still a finite resource and if we all pitch in to reduce needless consumption, this valuable resource will last much longer. It's an obvious point but one that needs to be made since the gut reaction to this kind of news release is usually one of relief that oil conservation is no longer necessary.


More... (http://www.practicalwheels.com/2006/11/cera_claims_its_latest_analysi.html)

[mabb]

Wolf! Wolf! WOOOOOLLFF!

I've lived through a lot of previous "all our oil is going to run out in (pick year)" panics. Nobody believes these claims now because they've been proven to be lies in the past. Inevitably we WILL run out of oil, and no one will believe it then either.
I probably won't be alive by then, though. One advantage to being an old codger! :)

[Fredzepplen]

That is one side of the argument.

On the other side of the argument is the FACT that Hubbert (the guy behind peak oil theory) has been right on the money with his predictions. Despite oilsands etc, peak oil has come and gone in North America. Hubbert based his world theory on the known reserves at the time, back in the 1950's. He could not factor unknown reserves into his predictions but that in no way negates the theory.

Sure there is lots of oil left, but the easy oil has all been found. The Middle East is the only place I am aware of where oil still flows from the ground under pressure. Everywhere else the oil must be pumped and coaxed from the ground. This significantly increases the cost and introduces an "energy cost" to producing oil. Holes do not drill themselves, oil does not pump, process, refine or distribute itself.

If world oil prices dropped to $20 a barrel, Alberta would grind to a halt. This is exactly what happened in the early 90's.

The bottom line is get it through your thick skull that $1 a litre IS cheap.