My conversation with Dr Vincent Cable (LibDem - Energy)
Posted: 11 Sep 2005, 16:24
Dear Dr Cable,
I am sorry if you felt that I was ascribing stupidity to yourself. That is far from my intention.
You make several interesting points:
First of all I am really glad that you have taken the time to study the papers, even though you are not yet persuaded of the truth and accuracy of the Peak Oil predictions.
30 years ago, that is in the 70s, the world was only just getting over the Peak of Discoveries of oil. That was a time of plenty when energy and oil in particular seemed quite inexhaustible. But even then, voices of people such Dr Hubbard could be heard, if only we listened. I have not heard them either.
Dr Hubbard correctly predicted the US Peak Oil and many other local peaks of production. Although originally 'discredited', his method is now used universally in the oil industry to predict extraction curves for individual wells and fields. However, his method applies equally well to larger structures, such as countries, continents and the world. And on that scientific basis world Peak Oil is predicted as falling somewhere between 2005 and 2010.
However, the precise date is not that important, What is more important is that Hubbard's 'law' indicates that once a peak is reached, no amount of investment will increase production beyond the peak. Attempts to do so only result in a slower decline initially, followed by a steeper decline a few years later.
So,
a) we are discovering just 1 barrel of oil for every six barrels being consumed,
b) post peak no amount of investment will increase the flow of oil,
c) peak is imminent (I know you disagree on this, but just consider how oil has tripled in price over the past 18 months, not due to crises, but due to supply and demand being finely balanced), and
d) world demand for oil keeps on increasing by around 3% per year.
We are about to hit the buffers. Now even Gordon Brown recognizes that the end of cheap oil has arrived.
We can of course assume that some new technology will save us from the coming crisis, be it clean energy from tar sands or coal, or nuclear fusion. But would that be wise? Do we really want to just hope that something will turn up? The consequences of an alternative not turning up are truly dreadful (http://www.lifeaftertheoilcrash.net/) and would include a deep depression, stock markets collapses, pensions/ insurance companies going bust, and eventually perhaps even breakdown of law and order (and maybe earlier than we think, judging by the New Orleans tragedy).
On the other hand, if we force the issue now, at worst we would simply develop additional clean energy sources, which for other reasons would be a good idea anyway.
How can there be any argument? I do not understand the logic of resisting actions necessary in the event of Peak Oil occurring shortly.
Anyway, I am satisfied that you and therefore your party, are now informed of the phenomenon, and thus cannot deny knowledge of it in the near future, when Peak Oil occurs and UK society starts collapsing
Sleep well
Paul Sousek
concerned citizen
(BTW, I have already taken steps to protect myself and my family in various ways, such as moving to a farm and becoming independent of utilities and oil where possible, so I am talking to you from personal conviction and experience, not just passing on opinions)
-----Original Message-----
From: PRIESTLEY, Shona [mailto:PRIESTLEYS@parliament.uk]
Sent: Friday, September 09, 2005 04:30
To: PS@UltexMR.com
Subject: Message from Dr Vincent Cable MP
Please find following a message from Dr Vincent Cable MP:
Dear Mr Sousek
I think it might help our dialogue if you did not ascribe stupidity and illogicality to everyone who does not share your views.
Interestingly I had another equally vehement response from another reader who shared your board approach but quotes various estimate that Peak Oil could happen in the period 2010 to 2030.
I have looked at the Tooke and Campbell papers. I would be more easily persuaded if I had not heard exactly the same arguments about supply advanced 30 years ago by the Club of Rome and others and which became discredited in the following decades.
The pessimistic argument hinges critically on there being no technological advance in the way non-conventional crudes are developed. We do not know, at this stage, one way or the other.
As it happens, I believe we might arrive at the same policy conclusion albeit for different reasons. I support a strongly conservationist approach to demand management (as do the Lib Dems as a party. I do so for environmental reasons (CO2) not because of supply constraints but I guess it does not matter if we come out at the same place. Why I worry about your doomsday approach is that if ever rising prices are assumed this will force a demand response without governments needing to do anything. I fear that prices will fall back and that governments will fall asleep and do nothing to curb consumption growth and emissions.
Yours sincerely
Dr Vincent Cable MP
Shona Priestley
Constituency Office of Dr Vincent Cable MP
2a Lion Road
TWICKENHAM
TW1 4JQ
Tel: 020 8892 0215
Fax: 020 8892 0218
I am sorry if you felt that I was ascribing stupidity to yourself. That is far from my intention.
You make several interesting points:
First of all I am really glad that you have taken the time to study the papers, even though you are not yet persuaded of the truth and accuracy of the Peak Oil predictions.
30 years ago, that is in the 70s, the world was only just getting over the Peak of Discoveries of oil. That was a time of plenty when energy and oil in particular seemed quite inexhaustible. But even then, voices of people such Dr Hubbard could be heard, if only we listened. I have not heard them either.
Dr Hubbard correctly predicted the US Peak Oil and many other local peaks of production. Although originally 'discredited', his method is now used universally in the oil industry to predict extraction curves for individual wells and fields. However, his method applies equally well to larger structures, such as countries, continents and the world. And on that scientific basis world Peak Oil is predicted as falling somewhere between 2005 and 2010.
However, the precise date is not that important, What is more important is that Hubbard's 'law' indicates that once a peak is reached, no amount of investment will increase production beyond the peak. Attempts to do so only result in a slower decline initially, followed by a steeper decline a few years later.
So,
a) we are discovering just 1 barrel of oil for every six barrels being consumed,
b) post peak no amount of investment will increase the flow of oil,
c) peak is imminent (I know you disagree on this, but just consider how oil has tripled in price over the past 18 months, not due to crises, but due to supply and demand being finely balanced), and
d) world demand for oil keeps on increasing by around 3% per year.
We are about to hit the buffers. Now even Gordon Brown recognizes that the end of cheap oil has arrived.
We can of course assume that some new technology will save us from the coming crisis, be it clean energy from tar sands or coal, or nuclear fusion. But would that be wise? Do we really want to just hope that something will turn up? The consequences of an alternative not turning up are truly dreadful (http://www.lifeaftertheoilcrash.net/) and would include a deep depression, stock markets collapses, pensions/ insurance companies going bust, and eventually perhaps even breakdown of law and order (and maybe earlier than we think, judging by the New Orleans tragedy).
On the other hand, if we force the issue now, at worst we would simply develop additional clean energy sources, which for other reasons would be a good idea anyway.
How can there be any argument? I do not understand the logic of resisting actions necessary in the event of Peak Oil occurring shortly.
Anyway, I am satisfied that you and therefore your party, are now informed of the phenomenon, and thus cannot deny knowledge of it in the near future, when Peak Oil occurs and UK society starts collapsing
Sleep well
Paul Sousek
concerned citizen
(BTW, I have already taken steps to protect myself and my family in various ways, such as moving to a farm and becoming independent of utilities and oil where possible, so I am talking to you from personal conviction and experience, not just passing on opinions)
-----Original Message-----
From: PRIESTLEY, Shona [mailto:PRIESTLEYS@parliament.uk]
Sent: Friday, September 09, 2005 04:30
To: PS@UltexMR.com
Subject: Message from Dr Vincent Cable MP
Please find following a message from Dr Vincent Cable MP:
Dear Mr Sousek
I think it might help our dialogue if you did not ascribe stupidity and illogicality to everyone who does not share your views.
Interestingly I had another equally vehement response from another reader who shared your board approach but quotes various estimate that Peak Oil could happen in the period 2010 to 2030.
I have looked at the Tooke and Campbell papers. I would be more easily persuaded if I had not heard exactly the same arguments about supply advanced 30 years ago by the Club of Rome and others and which became discredited in the following decades.
The pessimistic argument hinges critically on there being no technological advance in the way non-conventional crudes are developed. We do not know, at this stage, one way or the other.
As it happens, I believe we might arrive at the same policy conclusion albeit for different reasons. I support a strongly conservationist approach to demand management (as do the Lib Dems as a party. I do so for environmental reasons (CO2) not because of supply constraints but I guess it does not matter if we come out at the same place. Why I worry about your doomsday approach is that if ever rising prices are assumed this will force a demand response without governments needing to do anything. I fear that prices will fall back and that governments will fall asleep and do nothing to curb consumption growth and emissions.
Yours sincerely
Dr Vincent Cable MP
Shona Priestley
Constituency Office of Dr Vincent Cable MP
2a Lion Road
TWICKENHAM
TW1 4JQ
Tel: 020 8892 0215
Fax: 020 8892 0218