Peak Oil Coming Soon, Says Energy Exec

Charles Maxwell, a former energy executive who is now an analyst at Weeden & Co., says "peak oil" will drive oil prices to US$300 a barrel over the next decade.

Maxwell says that alternative energy is still far too small a portion of our energy consumption to make a difference. Conservation will be the only way to manage dwindling supplies.

Olivier Ludwig interviews Maxwell for the Financial Post:

"MAXWELL: Globally, I believe we're quite close to the peak, simply because we've gone from 6% increases in production to 3% per year increases, to half a percent per year increases. I think peak will come between 2015 and 2017. So, we're nearly on it."

Thanks to Steven Godfrey

Full Story: Oil is going to US$300 a barrel, peak oil coming soon Read more: http://www.financialpost.com/news/business-insider/going+barre

Comments

Comments

Irvin Dawid's picture
Correspondent

Missed Opportunity To Distinguish Peak Prices from Peak Supplies

Q: "You’re a believer in the peak oil theory, correct?"

A: "Yes, but remember, we won’t run out of oil for thousands and thousands of years. There will always be some kind of drilling going on in some isolated place in the world and new supplies will be available."

I meant that the missed opportunity was on behalf of the Financial Post, not Charles Maxwell.

Maxwell does a good job, though, of showing how escalating oil prices affect only one energy sector of the economy (which in turn, affects many others):
"We have to keep in mind is that oil is particularly useful in the transportation sector — starting with airplanes and boats and going on to trucks and trains and cars. About 97% of transportation depends on oil. So when we talk about oil production slowing down and reversing, you’re talking about a huge cost to the transportation sector."

Irvin Dawid

Peak Oil

If the data is sound, it could well be true. But what are this guy's motives? Oil execs have been predicting peak oil for years. It's very convenient for them to have a reason to make oil more expensive.

We need to use less oil, regardless, for health, environmental and economic reasons.

I'm just skeptical of anything out of an oil exec's mouth.

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