Economic Report to US President 2008 mentions Peak Oil
Posted: 14 Feb 2008, 10:28
An analysis of the report to the President 2008
"Chapter 7, Page 167
Some fear that high oil prices reflect a peak in oil production and
predict an imminent decline in production in the near future. ...
Even if production has peaked, we are unlikely to abruptly run out
of oil. As the price rises over time, producers will have an incentive to
retain some of the resource to sell at a later date and consumers will
have an incentive to transition away from oil consumption. Over time,
the price rise will make the adoption of alternative energy sources more
and more likely."
1. Peak oil is on the agenda and being talked about in US political circles
2. They are aware that exporters will probably try to start hoarding to
push prices up even further. So look forward to huge price rises.
3. Consumers will transition away from consumption. This is a roundabout
way of saying they will stop using oil.
4. "Over time..." Means there will be a long period of readjustment where
some consumers cannot consume and that it will be some time before we have
enough alternative energy sources.
"Chapter 7, Page 167
Some fear that high oil prices reflect a peak in oil production and
predict an imminent decline in production in the near future. ...
Even if production has peaked, we are unlikely to abruptly run out
of oil. As the price rises over time, producers will have an incentive to
retain some of the resource to sell at a later date and consumers will
have an incentive to transition away from oil consumption. Over time,
the price rise will make the adoption of alternative energy sources more
and more likely."
1. Peak oil is on the agenda and being talked about in US political circles
2. They are aware that exporters will probably try to start hoarding to
push prices up even further. So look forward to huge price rises.
3. Consumers will transition away from consumption. This is a roundabout
way of saying they will stop using oil.
4. "Over time..." Means there will be a long period of readjustment where
some consumers cannot consume and that it will be some time before we have
enough alternative energy sources.