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There is considerable evidence that world’s oil
production is set to begin its terminal decline soon.
Various estimates show that the all time maximum in oil
production will be reached by the end of this decade.
After this, production will begin to diminish, first at
a low rate of 1 or 2 percent a year, then increasing to
about 5 percent after two decades. This 5 percent is the
current decline rate in the US. The US passed its peak
production in 1970, when it extracted 11.3 million
barrels of oil a day. Last year the daily oil extraction
rate was 6.8 million barrels. Since we use 20.6 million
barrels a day, the large shortfall is imported. Oil and
cars are the top two import items contributing to our
weak balance of payments. The situation in natural gas
for the US is equally troubling. Last year our
consumption was 22.0 trillion cubic feet in contrast to
our extraction rate of 18.2 trillion cubic feet. The
difference is imported mostly via pipelines from Canada
and partly as liquefied natural gas from Trinidad and
North Africa. US imports from Canada are just over
one-half of Canada’s production.
The all-time extraction peak for natural gas in the
US was in 1973. The data on discovery indicates that
both the US and Canada are now in terminal decline in
natural gas extraction. Depletion rates for natural gas
are much higher than for oil. Natural gas prices have
reached new levels and this has led to an exodus of
investment for new industrial plants which have natural
gas as their primary source of raw material. These
trends can be seen in the drop of 20 percent in the
industrial use of natural gas since 1997.
The era of energy scarcity that we are now entering
will become the central issue of the coming years. Our
suburbs have trapped us in a culture of dependency on
automobiles for conducting our daily lives. Many false
solutions will be suggested and put into action. These
include bio-fuels, such as ethanol from corn and
bio-diesel from soybeans. Of last year’s corn crop of
11 billion bushels, about 15 percent went to ethanol
production. This is about the same amount that went to
corn exports. Over one half of the corn production goes
to animal feed, with the rest to the food industry. The
size of the bio-diesel production is still small, less
than 2 percent of the ethanol production.
In order to keep us motoring, the latest car
technology advocated is plug-in-hybrids. The batteries
would be charged at night from a wall plug. Wide scale
adoption of this way of powering our motoring needs
would clearly increase the consumption of electricity,
half of which is today generated by coal. Rather than
moving us to cleaner fuels, plug-in-hybrids would be a
step back and would surely lead to accelerated global
warning. Similar roadblocks arise if we were to promote
fuel cells for cars. The hydrogen used by fuel cells
would most likely be produced by electrolysis of water,
also leading to an increasing use of coal. The dream of
powering our car culture with wind and solar power are
distant hopes and will not be realized.
The most effective way to reduce consumption of
transportation fuels is to move to public
transportation. This is difficult because we cannot give
up our cars quickly. Still, the need for light rail and
intra-state rail systems will become absolutely
necessary once we move past the oil production peak and
into the era of energy scarcity. Unlike today when the
population of the United States has been moving out to
counties next to interstate freeways, the future moves
will be to small towns with railroad stops and back to
cities to districts along the rail lines. Higher density
housing with its thrifty energy use will be a natural
outcome of this trend. European cities are models for
this kind of “transit oriented development”, and it is
heartening to see it as a growing trend in our more
progressive cities. With high diesel and gasoline
prices, long haul trucking will diminish and our
vacation travel to distant places will come to an end.
Energy scarcity will reverse the trend to
globalization. Our lives will become more local by
necessity. The difficulties we face need to be addressed
together and the organizations that attempt to
understand our dilemma in addition to the local Sierra
Club (global warming), include
1000 Friends of Central
Ohio (transit oriented development),
Simply
Living (local food production),
and the
Sustainability Roundtable of Central Ohio
(sustainable business).
The
Central Ohio Relocalization Effort,
of which I am a member, is a local chapter of the Relocalization Network of the
Post-Carbon Institute.
Its goal is to understand how society can cope with the
various aspects which global energy scarcity will force
upon us.
Dr. Seppo Korpela is a professor of mechanical
engineering at Ohio State. He wrote the chapter
"Prediction of World Peak Oil Production" in the book
"The Final Energy Crisis", Pluto Press, 2005, and has
lectured on this topic in Finland, India, and the US. He
is a member of the advisory board of the
Association for
the Study of Peak Oil and Gas-USA. General
information is given on
his website.
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There is considerable evidence that world’s oil
production is set to begin its terminal decline soon.
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