Your article is high on assertions and low on facts.
When oil companies are cutting and consolidating like they're living on borrowed time, it's a big sign of things to come.
If there's so much oil out there, then where is it? Discovery of the stuff peaked in the 60's and we've been depleting it at a 4 comsumed to 1 discovered ratio since then.The oil that powers economic activity is the lightsweet surface crude. This is what runs the global market. As this stuff diminishes, we will be facing issues.
I've posted a mountain of factual geologic data that clearly shows we're headed for a serious problem, but of you don't want to listen to it then I'm not going to force you.
What would it concievably take to convince you that there will be an oil crisis?
How many pieces of evidence concievably would have to be produced? Would the U.S. Department of Energy, the energy authority for the entire U.S., publically acknowledging peak oil as a reality be enough? Howabout the President of Saudi Arabia?
$5 a gallon gas? $7? What would it take? Or are you just beyond convincing, irrespective of the evidence?
Godless said:
I was waiting for someone to bring that up.
The only counterpoint to peak oil so far, other than predictable denial, has been a small collection of Russian crank scientists that insist that all the knowledge on oil production is wrong. They believe that oil is an endless resource that is produced at the center of the Earth and comes up through the mantle and ultimately closer to the surface. They believe that oil is nonbiological in origin.
What I would really love to see proponents of abiotic oil theory explain away are biomarkers. Any attempt would be tantamount to trying to rationalize away guilt for murder when you have your bloody fingerprints on the weapon, your skin under the victim's fingernails, your hair on their garments, and your semen in their body. Everything we would expect to find if the parsimonious hypothesis that fits the evidence was true, and evidence that can't exist if the alternate theory was true. If any attempt to explain that is forthcoming, it will be apologetic ad-hoc ill contrived nonsense at best. Abiotic oil does exist, but it is in insignifigantly miniscule, noncommercially viable quantities, and the rate at which is produced hasn't shown to be any faster than biotic oil, which is around 20 million years.
Most of the time when people really dig into the chemical composition of crude oils, they find biomarkers. Things called hopanes and phytanes and such. These chemicals can be traced directly to, say, the lipids that make up cyanobacterial cell membranes (and only those membranes), or to the wax that coats the leaves of some extinct tree from Tasmania - and fossils of the same leaves are found 100 km away in coal of the same age.
The oil we've been using to power our world is a fossil fuel. While an indigenous origin has been proposed by several notable geologists, there are
things that make this unlikely.
The first clue we find is, of course, that oil is carbon-based, much like life. The second is that nitrogen and porphyrins, found in living things, are found in many petroleum deposits as well.
Porphyrins, FYI, cannot survive temperatures of more than around 200 degrees Celsius, common deep below the earth's surface.
A very important clue is the fact most oil occurs in or near sedimentary rocks of marine origin--if oil was leaking up from deep within the crust,
we would expect most of it to occur in assorted rock near fault lines instead.
Coastal upwelling, a phenomenon associated with much of the hypothesized formation of organic oil, embeds larger amounts of phosphorus in the layers of dead marine plankton it creates, than the ocean at large. And what do we find in places like California and Montana, which were formerly coastal and possess oil deposits? Petroleum with much phosphorus content...
The carbon-12 / carbon-13 isotope ratio in oil deposits
is a nice approximation to that in known living things.
Finally, and this is pretty much decisive, the molecular structure of hydrocarbons can often be directly linked to pigments, chlorophyll, leaf waxes, etc. of species that biology and paleontology tells us were dominant at those places during times when oil formed. (
Source)
[
Information about the various types of identifiable oil kerogens and the organisms they derive from]
This is not all of the evidence for a biological origin of oil, but it should be enough. Any of it can be explained with an appropriate ad-hoc rationalization, but this practice can weaken its explanatory power compared to the mainstream view.
Now, oil
can be formed naturally. This is no secret to geologists. There are a few known examples of this phenomenon, most notably a few Russian oil fields. But this oil
(1) tends to differ in identifiable ways from the usual variety, and
(2) is by far miniscule compared to our oil needs and reservoirs of organic origin.
As in any other field, there have been other challenges to mainstream views on the formation of oil, with various levels of incompetency. Among the most hilarious are young-earth creationist claims that oil and coal are a result of Noah's flood. But these minority viewpoints are less successful when trying to predict
which areas and/or rocks have most chance of yielding oil, the key test of any such hypothesis.
Peer-review in a prestigious journal does not entail accuracy; merely the lack of completely amateur scientific errors. And then, there have been rare examples of those in peer-reviewed journals, too.
Basically, the hypothesis that oil is formed abiotically:
- Cannot readily account for the geology or chemistry of known oil deposits, both of which render the indigenous origin implausible;
- Is true on a micro level, since small amounts of various hydrocarbons, and methane, are demonstrably formed by non-organic geologic processes;
- Does not match the predictive power of mainstream geology, which consistently and successfully tells us, in advance, which rocks are most likely to contain oil.
In other words, the fact that oil is produced by non-organic processes deep within the earth's crust in miniscule quantities is something no geologist will debate. Sure, they exist, but they are infintessimally minute and null for all practical intents and purposes reguarding future sustainability.
The theory of all petroleum being abiotic, or even a large quantity of it, is not well-established and is currently considered inferior to the mainstream view for obvious reasons. It's ideologically-sponsored and
demonstrably "crank" science like many such "alternative theories" ("HIV doesn't cause AIDS," "global warming isn't happening," various forms of creationism, etc.). Confidently asserting commercial reserves of oil aren't fossil fuels is as ridiculous as it gets.
The "Abiotic Oil" Controversy
Richard Heinberg explains why this theory is nonsense at best, delusional thinking at worse.
Abiotic Oil: Science or Politics?
Professor of Chemistry Ugo Bardi offers a simple assessment of the abiotic theory. His logic is so clear, and the culmination of his argument is so cogent, that even a child could understand it. The conclusion is inescapable one to any honest enquiry - abiotic theory is false, or at best irrelevant.
So lets recap. So far we've seen mega mergers and buyouts (it's easier to buy/merge with another company than it is to expore for oil since you will likely not find anything), a growing deficit between discovery and consumption, fewer and fewer megaprojects, OPEC having 0 spare capacity, Ghawar, the largest field in the world, pumping up over half water and entering terminal decline, the energy advisor to the President warning us about this, The US DoE putting out a 45 page report, and scads of retured (and thus disinterested from the petroleum industry) independent petroleum geologists telling us this is coming along with the former VP of Saudi oil giant Aramco (who is also disintrested since he's retired) saying the US has dangerously overestimated Saudi reserves. We also see suprious revisions during the OPEC quota wars, and the IEA warning all governments that they must accept Peak Oil as a reality.
So we have a concensus amongst the foremost authorities when it comes to energy, and the naysayers being a fringe minority that is grasping at straws.
That situation in itself is rather telling.
But don't take my word for it. When we're back to fuel rationing and outrageous prices, just remember
They told you so. Of course by that time it will have been far too late to make preemptive preparations.
Savvy investors are obviously in-tune with what is going on. Here is a snipet from a Forbes newsletter:
THE MOST IMPORTANT ADVICE WE HAVE GIVEN IN 20 YEARS
There are four major opportunities concerning crude oil, gold, stocks, and bonds that will make and break millionaires during the next 24 months.
Opportunity #1 - Buy some energy stocks
The first of four major opportunities you will encounter in the next six months - which is also the biggest money making opportunity I have seen since the stock market made its lows in 1982 - is to buy some energy stocks. You may be skeptical about this - as investors were when we told them to "mortgage the house and buy stocks" in the spring of 1982. Nevertheless, here it is.
Oil and natural gas are on their way to significantly higher levels. You can still buy select oil and gas producers that pay 12% to 14% dividends - and they pay monthly. It doesn't get better than that. There are many reasons to buy oil and gas. Unrest continues to mount in the Middle East, and the so-called terror premium in crude prices will remain until we see at least three years of peace in the fertile crescent. I think that will be a long time coming.
There is a shortfall between supply and demand, and this shortfall is growing. World demand increased 2.5 million barrels a day over the last year due to increased demand in the U.S. and Asia. India and China are industrializing at a feverish pace, and their energy appetite is increasing exponentially. On the other hand, global production is very close to a peak, and there is no "excess" production capacity left. We are at the point where the rubber hits the road, and the only rationing mechanism for who gets the available supply will be higher prices
There is a "grand unified thread," if you will, that ties together each of the four opportunities facing you. This common factor is the weakness in the U.S. dollar. As the dollar falls, the price of crude oil will rise. As the dollar falls, our dividends on Canadian energy stocks will rise in U.S. dollar terms. As the dollar falls, the S&P 500 and Nasdaq will decline. As the dollar falls, bonds will fall and interest rates will rise. As the dollar falls, the third great bull market in precious metals will accelerate.
There are those who believe that the Fed's new stance toward higher interest rates will push the dollar higher. In fact, higher rates will punish the economy and will increase the trade deficit and the federal deficit. Higher interest rates will be very costly for both consumers and the government, and they will not help the dollar.
The inflation genie is out of its bottle again. Crude oil prices reflect that, and the price of energy is a factor in the price of everything you buy. Everything has to be shipped, and wholesale suppliers are already beginning to add fuel surcharges to their invoices. This cost gets passed on to the final buyer. Forget the CPI. It is simply a lie. You know what's happening to the cost of your food, gasoline, home heating, insurance, medical expenses, etc. You know prices are rising a good deal more than the government's official rate of 2.5%.
The basic reason is the falling value of the dollar. Until short term interest rates rise at a pace as fast as inflation and to a level at least as high as the real rate of inflation, the dollar will remain under pressure. My ultimate downside target is to see the U.S. dollar index (now at 90.00) fall to 60.00. This may end up being optimistic.
You can still make a profit in this rising inflation/falling dollar era, but you will have to change some of your thinking. The falling dollar and rising interest rates are bad for bonds. It is tough to argue against that.
Incidentally, it screams of the investment oppurtunities of peak oil and natural gas.
-
Forbes
In order for this 'peak oil is a myth' theory to make any sense, we would have to believe that all of the worlds major authorities on energy have collectively collaborated to create a false epidemic, falsify all geological data, and deliberately stop all oil companies from producing oil or discovering the stuff while forging documents that they have been drilling dry holes during exploration. Furthermore, not one person inside the thing has come forward to blow the whistle and expose how all geologic data is fraudulent and no reliable oil figures exist due to this international worldwide conspiracy network affecting all aspects of the petroleum sector.
If you'll buy that, I have a bridge I'd like to sell you.