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Peak oil believers think so, but oil, gas companies say that theory is bogusGene Davis, DDN Staff Writer |
A “peak oil” conference wrapping up today in Denver is sounding the alarm that oil demand will soon outgrow supply, posing a potential economic threat to the country’s economic well being.
However, most oil and gas companies say the peak oil theory is bogus and that there are plenty of the natural resource to go around.
Mayor John Hickenlooper is among the peak oil believers. The former geologist told conference attendees yesterday that it’s not a question of if the world will reach peak oil — meaning the time of maximum oil production — but when it will happen.
“We cannot afford to ignore the issue,” he said in a statement. “By anticipating the expected rapid changes in both supply and demand, we can begin to frame the issue not only as a challenge but also as an economic opportunity.”
But The Colorado Oil and Gas Association, for one, doesn’t think Hickenlooper’s school of thought has much credibility.
“For more than five decades, various individuals have claimed that the world had reached, or was nearing, peak oil,” said a statement from the group. “With more than 200 new oil discoveries in the last year alone, it’s safe to say that peak oil enthusiasts are every bit as wrong today as they have been for the past 50 years.”
The Association for the Study of Peak Oil and Gas has been hosting the International Peak Oil Conference at Denver’s Sheraton Hotel since Sunday. The event has featured more than 70 speakers who have talked about “energy, oil, and our future.”
David Bowden, ASPOG executive director, said that after maximum oil production is reached, the United States economy might have difficulties growing without the constant input of steady and inexpensive oil.
As a result, Bowden is urging for people to “conserve, conserve, conserve” and shy away from “our monolithic oil consumption habits.” Although the United States has around 5 percent of the world’s population, the country uses approximately 25 percent of the world’s oil supplies, largely because of automobile usage.
Bowden supports light rail projects like FasTracks instead of building more roads or expanding highways. FasTracks is a multi-billion dollar transit expansion plan to build 122 miles of new commuter rail and light rail.
“Even though FasTracks has its challenges and the system is a bit limited right now, as oil supplies tightens and the prices go up, it will be necessary,” he said.
Critics have continually slammed FasTracks for running behind schedule and over budget.
“(FasTracks) was such a faulty fiscal plan, it’s inexcusable,” said Jon Caldera of the libertarian Independence Institute earlier this year.
The recession and falling prices at the pump have taken the oil and gas issue out of the headlines. But when the country pulls out of the recession and starts consuming more oil — and growing populations in countries like China and India do the same — the issue will become intensified, especially if oil production drops, Bowden said.
“Anyone who tries to predict the timing and price of oil is engaged in a fools errand,” he said. “But we see the long-term writing on the wall.”
