The Myth Of The Oil Crisis

re some things most people today know about oil.hold trillions of barrels in the USA alone.
* Global oil output is going to plummetSo there is no need to fight ‘resource
* Prices are going to rise foreverwars’ to ‘secure’ oil. Invading
* The transition to alternative energy will be longoil-rich countries is vastly expensive and makes oil
and painfulsupplies less, not more, secure. The Middle East is
* There will be more ‘oil wars’ anda growing part of the world economy, not a nest
industrial civilization may collapseof terrorists, desperate to cut off oil supplies in
* Oil and gas will cause catastrophic climateorder to bankrupt themselves and invite
changevengeance. Propping up dictators in return for
The problem is that these ideas are wrong. Oilenergy ‘favours’ is not a valid long-term
‘ran out’ first in 1885, and perhapsstrategy either. The West, China, India and the oil
another five times since then. Every time, newexporters will gain far more from co-operating on
finds, new technologies and changes in oil useenergy, than following the mirage of ‘energy
confounded the pessimists.independence’.
Oil prices above $140 per barrel seem toShould ‘we’ invest massively to move
encourage the growing belief that we areto a renewable energy system? Well, we already
approaching ‘peak oil’ and that supplyare -- $100 billion in 2006 alone, and not only in the
cannot increase any more. But what has changedWest, but in China, India, Brazil and other rising
since 1998 when oil cost $10 a barrel? Just that apowers. It’s hard to grow renewable
long period of under-investment in new energyenergy any faster. Renewables are clearly a key
supplies collided with rapid growth in Asia (and,part of powering the future, and of fighting global
easily forgotten, the USA). It takes years to turnwarming, but oil (and gas, and coal) are going to
the energy super-tanker around, to develop newbe the main sources of energy for decades to
oil fields, even though there is plenty in thecome. Capturing the carbon dioxide from fossil
ground.fuels, and storing it underground, is entirely
There is a real debate over how much oil thepractical and should be a major part of climate
world holds. But ideas of a vast conspiracychange policy. renewable energy and
involving some mix of OPEC, the US governmenthydrocarbons are not enemies -- we need to use
and ‘Big Oil’ to exaggerate oil reservesthem both.
are fantasy. Official figures are, if anything,So the ‘end of oil’ is not imminent --
somewhat under-stated, and, as recent massiveneither is the collapse of industrial civilization. Even
finds in deep water offshore Brazil show, newif oil supplies started declining, we could fill the gap
exploration frontiers still exist. Out-datedwith improved efficiency and new energy sources.
environmental moratoria in the USA could be liftedIt’s neither necessary nor desirable for us
to yield more domestic hydrocarbons. Newto go back to some ‘Year Zero’ of
technologies continue to wring more out of oldpre-modern society. Oil will never ‘run
fields. Most importantly, ‘unconventional’out’; it will be replaced, probably decades
oil sources hold many times the volumes ofhence, by something better. That is the best and
conventional oil - from the famous Albertan ‘oilmost positive reply to fears about the ‘end of
sands’, to fuels from natural gas, coal andoil’.
plants, to ‘cooking’ oil out of shales that©2008 Robin M.