Why "peak oil" makes sense
For those of you interested in bio fuels --including industrial hemp processing for fuel-- tracking the latest dicsussions around oil production may be of interest. One site that does it very well is The Oil Drum. First time visitors will want to check out the section that explains the concept of "peak oi" and why many feel that production has begun to plateau.
At the same time let's not underestimate the creativity of humankind. In the early 1990s many believed that drilling in offshore depths of over 500 meters would prove impossible. Today, companies are positioning rigs on open water that are able to sit up to 2700 meters above the ocean floor, allowing access to reserves long thought unreachable.
The cost of production has certainly skyrocketed while the quality of crude extracted from the ground is of poorer quality. This, along with questionable claimed reserves, geopolitical instability, increasing demand and a host of other factors, will continue to ensure high prices at the pump. In short, there's very little "easy oil" left.
The good news is that the earlier the majority accepts "peak oil", the faster we will be able to move to alternate fuels. My hope is that national oil companies along with "the Majors" adopt a multi-faceted exploration and production strategy which includes R&D dollars for bio fuels as opposed to "hard to find oil". I contend that a new switch from exploration to bio fuel refining is long overdue.
An industry insider recently told me that there are some 70 refinery construction projects planned worldwide in 2006...over five in the United States alone. I'm told those numbers are unheard of in oil & gas. Let's hope that includes ethanol and other bio fuel refining as well.