Mispeak Oil...
A funny thing happened while we were looking for Peak Oil. It kinda went away.
Maybe.
Sorta.
At any rate, debate has been rekindled by three interesting articles, all of which are serious reading.
First, the highly acclaimed environmental journalist for the Financial Times, George Monbiot, throws in the all-natural towel:
The facts have changed, now we must change too. For the past 10 years
an unlikely coalition of geologists, oil drillers, bankers, military
strategists and environmentalists has been warning that peak oil
– the decline of global supplies – is just around the corner. We had
some strong reasons for doing so: production had slowed, the price had
risen sharply, depletion was widespread and appeared to be escalating.
The first of the great resource crunches seemed about to strike.
Among
environmentalists it was never clear, even to ourselves, whether or not
we wanted it to happen. It had the potential both to shock the world
into economic transformation, averting future catastrophes, and to
generate catastrophes of its own, including a shift into even more
damaging technologies, such as biofuels and petrol made from coal. Even
so, peak oil was a powerful lever. Governments, businesses and voters
who seemed impervious to the moral case for cutting the use of fossil
fuels might, we hoped, respond to the economic case.
Some of us
made vague predictions, others were more specific. In all cases we were
wrong. In 1975 MK Hubbert, a geoscientist working for Shell who had
correctly predicted the decline in US oil production, suggested that
global supplies could peak in 1995. In 1997 the petroleum geologist
Colin Campbell estimated that it would happen before 2010. In 2003 the
geophysicist Kenneth Deffeyes said he was "99% confident" that peak oil
would occur in 2004. In 2004, the Texas tycoon T Boone Pickens predicted
that "never again will we pump more than 82m barrels" per day of liquid
fuels. (Average daily supply in May 2012 was 91m.) In 2005 the
investment banker Matthew Simmons maintained that "Saudi Arabia … cannot materially grow its oil production". (Since then its output has risen from 9m barrels a day to 10m, and it has another 1.5m in spare capacity.)
Peak oil hasn't happened, and it's unlikely to happen for a very long time. [More worth reading]
The tipping point for him was
a report by Leanardo Maugueri of Harvard (funded by BP, ahem).
But wait - there seems to be some doubt about Maugueri's numbers. In fact, considerable doubt. A rigorous criticism was published by an equally respected science journalist, Chris Nelder.
To his credit, Maugeri acknowledges that his analysis “is subject to a
significant margin of error, depending on several circumstances that
extend beyond the risks in each project or country,” and he details
numerous important caveats. And to the extent that he reveals the
assumptions underpinning his forecast, his transparency is laudable. In
the final analysis, however, it is insufficient. He fails to provide
adequate justification that his assumptions, being widely divergent from
most other industry estimates, are remotely realistic.
We must conclude that the key assumptions about reserve growth and
its effect on decline rates in Maugeri’s report are muddled, speculative
and unverifiable. And sprinkling those assertions with repeated
declamations about how peak oil is a non-issue, insisting repeatedly
that the only real constraints on his scenario have to do with political
decisions and geopolitical risks, suggests that his report is more
about grinding a political axe on behalf of the oil industry than
offering a serious or transparent analysis. Finally we must note that
Maugeri is well known for his hostility to peak oil, as is BP, which
funded his report. After taking real-world risks, costs, and
restrictions into account, the case for peak oil—which is about
production rates, not production capacity or reserves—seems far more
realistic. [More]
Finally,
The Oil Drum, the blog for oil geeks, picks up the thread and adds the best comments to boot.
Summary Maugeri's analysis and conclusions are critically
dependent upon the decline rates applied to existing and future fields,
and yet he does not explicitly say what these decline rates will be.
However, Maugeri’s assumptions can be derived from his Table 2, which
projects gross and net capacity additions over the period to 2020. Doing
so suggests he uses an average annual decline rate for all fields of 1.6% over
this period, which is less than half of the IEA and CERA estimates for
2008 (4.1%/year and 4.5%/year respectively). The discrepancy is even
greater since the IEA and other analysts project an increase in average
decline rates over the 2011-20 period. If we replace Maugeri’s 1.6%
decline rate assumption with the IEA estimate of 4.1%, the
projected loss of production capacity over the period to 2020 increases
from 11 mb/d to 26.5 mb/d. In turn, the projected global production
capacity in 2020 reduces from 110.6 mb/d to 95.1mb/d (a reduction of
14%). Since average decline rates would be expected to increase over
this period, this projection must be considered optimistic. [More]
While I think I'm trying to be impartial, I probably am carrying my own biases into this fray, but
Sorrell's point about decline rates vs. depletion rates is abstruse but convincing for me. I have never been fascinated with Peak Oil because I wasn't sure what it really meant in everyday terms. Clearly the US production boom has made it seem like there is no real problem in the immediate future (for us anyway).
But looking at actual output trends as the critics do, I can't swallow the enormous production increases predicted in the Maugueri report.
The larger picture is the linkage to climate change. If we get better and better evidence that CO2 is an major and immediate problem, the amount of oil we can pump is merely a measure of
how fast we can drastically alter the environment for the worse.
In fact, those numbers are really depressing. It is not rocket math either.
Which is exactly why this new number, 2,795 gigatons, is such a big
deal. Think of two degrees Celsius as the legal drinking limit –
equivalent to the 0.08 blood-alcohol level below which you might get
away with driving home. The 565 gigatons is how many drinks you could
have and still stay below that limit – the six beers, say, you might
consume in an evening. And the 2,795 gigatons? That's the three 12-packs
the fossil-fuel industry has on the table, already opened and ready to
pour.
We have five times as much oil and coal and gas on the books as
climate scientists think is safe to burn. We'd have to keep 80 percent
of those reserves locked away underground to avoid that fate. Before we
knew those numbers, our fate had been likely. Now, barring some massive
intervention, it seems certain. [More]
While skeptics don't think the 2℃ is all that scary, more of us are growing uncomfortable with the 0.8℃ we've
already managed to produce. Not to be a doomsayer, but I just don't see much happening until way too late.
And given the current state of domestic and global policy debate, the first few decades will be spent assigning blame to win elections even if we do decide we're in trouble.