Peak Oil: Danger + Opportunity
There are many issues facing Canadians in the coming years. Some receive the attention they deserve. Others don’t. And in this blog we’d like to talk about one of those “other” issues.
We’d like to talk about Peak Oil.
Now, people have been saying “we’re running out of oil”, for the past thirty, fifty, seventy years. They’ve been wrong every time. That’s not what peak oil is about.
Peak Oil is the theory that worldwide oil production is reaching its peak at about 85 million barrels of oil per day (85 mbd).
This wouldn’t be a problem if demand was flat – but demand is rising.
It still wouldn’t be a problem if we had other energy sources ready to replace oil – but the developed world has been slow to develop alternative energy sources such as wind, wave, geothermal, and solar. Canada has been especially slow.
If demand is rising faster than supply, prices will rise. And in the past few years, there have been tremendous increases in the prices for oil, natural gas, uranium, even coal. Many people think those prices will continue to increase. People like Scott and I, and many scientists, geologists and engineers.
Many professional investors also think Peak Oil is coming; and they’ve put their money where their mouth is. They’ve invested hundreds of millions of dollars, betting they can make hundreds of millions more. The most prominent Canadian example is mutual fund guru Eric Sprott of Sprott Asset Management. Check out his“peak oil watch” at http://www.sprott.com/peakoil.php.
Scott and I strongly feel the Green Party offers the best strategy for Canadians, to face Peak Oil. This is the issue where the Green Party can earn its due. This is the issue where we can prove our worth to the electorate. No party brings the environmental and entrepreneurial spirits together, like us.
We would foster conservation and alternative-energy industries – both of these will reduce our dependence on fossil fuels, while creating a new generation of “green-collar” entrepreneurs and industries, whose services and products will be in demand, at all points around the globe, in a world facing higher energy prices.
You probably know the Chinese characters for “crisis” are “danger + opportunity”, right? Well, this is the danger and opportunity of Peak Oil:
The Danger - societies unprepared for Peak Oil will see a drop in their citizens’ standard of living
The Opportunity - societies prepared for Peak Oil will be able to sell excess energy, and export alternative-energy products, to less-prepared countries badly in need of them.
I’ll close with an an analogy:
-- Toyota was years ahead of GM, with its hybrid cars.
-- Toyota recently made record profits; GM is verging on bankruptcy.
When Peak Oil arrives, the Green Party wants Canada to be a “Toyota”, not a “GM”.
And to any doubters out there, we have two words: We Can.
A few Peak Oil resources: