Peak Oil News: Back in the [ASPO] USA!

Tuesday, November 15, 2005

Back in the [ASPO] USA!

EV World

Click to listen to MP3 audio

It was at a meeting of the American Petoleum Institute in 1956 that an American-born geophysicist named Marion King Hubbert, who was working for Shell Oil at the time, predicted that oil production in the lower 48 United States would peak and begin to decline sometime in the late 1960s to early 1970s.

He pretty much hit it exactly. It is now widely recognized that U.S. oil production peaked in 1970 and began a steady decline which continues to this day.

How could he have been so prescient? He saw the phenomenon repeated over and over again in various oil fields. Following a bell-like curve, oil production would ramp up gradually, reach a maximum level of extraction and then begin to decline. He simply extrapolated that the phenomenon would apply to an aggregate of all the nation's oil fields, based on the time production began, the rate of extraction and the estimated size of the field.

Hubbert's forecast was largely ignored for decades by the energy industry and government policy makers, and attempts to apply his methodology to world oil production is still met with skepticism.

The founding European branch of the Association for the Study of Peak Oil (ASPO) met for its very first conference in Upsala, Sweden some three years ago. Its subsequent conferences convened in Berlin, Paris and Edinburgh. Despite the fact that the father of "peak oil" was an American, it wasn't until 2005 that the first official conference finally was held here in the United States, under the auspices of the newly-formed American chapter of the (ASPO USA).

Ironically, on the very first day of the Denver World Oil Conference, the government of Kuwait announced that its largest oil field had peaked and is going into decline.

To quote the Arab Middle East News Service, "The news about the Burgan oil field also lends credence to the controversial opinions of investment banker… Matthew Simmons.

"The implications for the global economy are indeed serious. If the world oil supply begins to run dry then the upward pressure on oil prices will be inexorable. For the oil producers this will come as a compensation for declining output, and cushion them against an economic collapse.

"However, the oil consumers then face a major energy crisis. Industrialized economies are still far too dependent on oil".

Appropriately, it was investment banker and author of "Twilight in the Desert", Matthew Simmons, who made the announcement during his luncheon address.

Simmons was joined by other respected oil industry analysts including Chris Skrebowski, the editor of the Petroleum Review; Jeremy Gilbert, BP's chief petroleum engineer (retired); Henry Groppe, founder of Groppe, Long & Littell; and Thomas Petrie, the co-founder of Petrie Parkman Co.


1 Comments:

At 1:01 AM, November 16, 2005, Blogger Himalaya Wolf said...

Fossil Economy is coming to an end and peaking not in the 70's of the last Century but probably by 2006 to 2010 when Fossil Economy would gradually decline.It does tell us that we are living in a sustainable World that we cannot live beyond our means. Men have been spoilt and Science and Capitalism have helped usher Overspending the resources of the World that can never be recovered. The only remedy now is to STOP destroying our Habitat and if it falls on deaf ears, Nature would backfire and it would come in a massive way. Think about Katrina, think about Hurricane , think about....................................
overfishing......over logging.......over everything and think about Conservation

 

Post a Comment

<< Home