Wednesday, February 29

The death of peak oil

Here’s another structural transformation to add to all the others that you have to get your head around: it’s the transformation of global energy markets as a result of shale oil and gas.

We’ve already got the digital revolution and the switch from consumption to savings after the GFC, not to mention the rise of China and India. Now we have the death of peak oil.

For years we have assumed that fossil fuel reserves were running out, that peak oil production had occurred some time ago and that it was only a matter of time before the oil price rose to such heights that energy-dependent economies would be crushed, starting with the United States.

In a way these assumptions have helped underpin the movement against global warming (that is, we’ll have to give up oil anyway since it’s running out, so we might as well make the best of a bad lot and embrace electric cars and wind farms and save the planet from climate change while we’re at it).

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Business Spectator

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