Peak Oil for Dummies
Source: Ian Cooper, Wealth Daily (11/16/11)
"Peak oil has nothing to do with running out of oil; it is the "easy to get to" oil is gone."
The article goes on to talk about the large oil reserves on the U.S. outer continental shelf that are estimated to hold "100 billion barrels of oil and natural gas."
It points out the Canadian oil sands. . . and even mentions Occidental Petroleium's (OXY:NYSE) discovery of between 150 and 250 million barrels of oil reserves back in 2009.
But what the author fails to understand is that peak oil has nothing to do with running out of oil. Peak oil refers to the flow rates. It refers to the fact that the "easy to get to" oil is gone. It's the "hard to reach" oil that we now have to go after.
Forbes doesn't seem to understand peak oil.
The Guardian doesn't understand it.
Even oil expert, consultant and Pulitzer Prize-winning author Daniel Yergin tries to put fears to rest, saying this is the "fifth time in modern history that we’ve seen widespread fear that the world was running out of oil."
Yergin believes peak oil is garbage. He's wrong, though.
Because peak oil has nothing to do with running out of actual oil.
Peak oil means we've peaked as far as finding cheap oil supply. And we don't believe the world will just "eventually" run out of cheap oil in 10 to 12 years.
It's already happening.
The United States has already reached its peak oil date. In fact most oil producing countries have reached their production peaks—and the good ole days of discovering easily accessible, conventional crude are behind us.
Sure, there's oil in the tar sands in Canada, and heavy oil and oil shale in the world—but it's pricey and, more oft than not, difficult to get to.
The era of cheap oil really is over. . .done. . .kaput.
Every barrel that will come to market will be much more difficult to produce, and therefore much more expensive. Just ask U.S. oil experts, Germany, England—they are all fearful of this fact. Ask respected analyst Charles Maxwell.
Ask Chris DeHaemer, or any of the editors at Wealth Daily and Energy and Capital who have researched this issue for countless years. . .even published a well read book on peak oil.
If you don't understand peak oil, just go away. You sound stupid.