Wednesday July 23, 2008

Peak oil to hinder world development - UK lawmakers

peakoil.com -> in.reuters.com, appgopo.org.uk (pdf) :

The looming peak in world oil production will set back international development and threatens to hinder efforts to make poverty history, a report by a group of UK lawmakers said. "The deepening energy crisis has the potential to make poverty a permanent state for a growing number of people, undoing the development efforts of a generation," the report released on Monday [21 Jul 2008] said. "Communities across the globe are more vulnerable than ever, living in an unsustainable present and facing an uncertain future."

A rally in oil prices, which hit a record $147.27 a barrel earlier this month, is leading to more interest in peak oil. The 20-member parliamentary group, chaired by lawmaker John Hemming, was formed in 2007. Its report refers to warnings that peak oil is likely to occur "before 2015" and the current jump in oil prices is "a prelude to even more severe increases in the next decade." Its recommendations include the formation of an energy security working group and funding to boost local food production and energy security.

- Seeing how the UK's North Sea crude oil production has already peaked and has been in decline since 1999, and how the UK is turning out to be a permanent oil importer, and now has to resort to opening a giant gas pipeline from Norway, it is not surprising that the British have a rather keen interest in Peak Oil.

From a peakoiler's point of view, it is rather similar to the Australian case where they were not very much aware of the issues surrounding Peak Oil until Australia's own oil production peaked, and it was then announced by their government that they were running out of oil. To paraphrase early peakoiler Jay Hanson, people are unable to think about something until either they have experienced it first hand, or they have undergone extensive study to learn more about it *before* they experience it.

Peakoilers like myself fit into the latter group - people are always surprised when they hear that I am not from the oil & gas industry, and that I am just an "interested party" working in IT. There are basically two ways to spread awareness to people who do not live in countries with rapidly declining oil production - you could call it the carrot and stick approach. First, one could tell them it's a profitable hobby, which from my own experience can be quite true, and second, one could just wait for crude oil prices to start another record-breaking run, and say, "I told you so."

Myself, I have been doing both, going around telling people how I have hedged 100% of my petrol bills so I am no longer affected by the vagaries of rising or falling petrol prices. And, as far back as 2004, when oil prices were only in the $30's, I have been telling people, "I told you so."

See also :

1. Peak Oil - The pressure mounts
2. North Sea gas drying up faster than hoped
3. UK oil production continues to decline
4. Over 20 UK MPs and Lords form parliamentary peak oil group

(2008-07-23 09:21:45 SGT) [Energy] Permalink

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