Summary: Even in a “rapid transition” scenario the world will use over seven hundred billion barrels of oil in the next twenty years. This is more than 50% of the total oil produced since the inception of the industry in 1870. Since we have found and used most/all the cheap oil, inevitably the next 700 billion barrels will be more expensive. Peak Demand may be ahead, but “Peak Cheap Oil” is certainly behind us.
About the publisher: Richard Norris is a leading business developer and advisor to energy investors, developers, bankers and the public sector.
Continue reading “What “Peak Demand” really looks like”
Cold, dull, wind-less autumn days should make us think about the reality of energy security in a world celebrating high levels of renewable electricity supply
On a frigid autumn day let’s cast our minds back to the blissful dog-days of summer and the rampant headlines about how coal was now not needed and more than 50% of the UK’s power (meaning electricity) was provided by renewables. There has been a remarkable growth in renewable energy in the UK and whilst not blessed with much sun, wind is more abundant. Good news indeed.
Continue reading “The Cold Night of Forgetting*”
A “$5.2 trillion subsidy for fossil fuels” scream the headlines, followed rapidly by the conclusion that the subsidy-free “real” price to consumers should be much higher. The logic being that this artificially low price drives consumer demand of fossil fuels and thereby acts as a barrier to entry of renewables. The figures bandied about are eye-watering: US$5.2 trillion is 6.5% of global GDP… a very big number indeed. And this is a very emotive subject. So before getting onto the *real* fossil fuel subsidy, let’s take a moment to consider what is meant by “subsidy”.
Continue reading “The real fossil fuel subsidy – its not what you think.”