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Radio Lora, 9. März 2009

Alternative Radio


Richard Heinberg

Peak Oil - Ölförderung bis zum Anschlag - und was dann?
Eugene, Oregon, 29.1.2006

Richard Heinberg ist ein weltweit anerkannter Fachmann für Energiefragen. Er lehrt am New College of California und schrieb u..a. Bücher wie "The Party`s Over - Oil, War and the Fate of Industrial Societies" und "Power Down, Options and Actions for a Post Carbon World"

Am 29. Januar 2006 hielt Richard Heinberg in Eugene im Staat Oregon, die hier kurz auf deutsch zusammengefasste Rede:

Menschliche Gesellschaften benötigen wie alle Organismen und Ökosysteme Energie. Und nur aufgrund ihres hohen Energieverbrauchs hat sich die Menschheit in den vergangenen Jahrzehnten so sprunghaft entwickeln können. Das Zeitalter fossiler Kraftstoffe begann erst vor wenigen Hundert Jahren. Öl kam sogar erst Mitte des letzten Jahrhunderts zum Einsatz. Davor bezogen wir unsere Energie hauptsächlich aus Holz und unserer Nahrung. Doch ganz allmählich begannen wir, immer mehr Energie auch für Transportmittel, Wärme und Beleuchtung zu erzeugen.
Noch 1850 wurden in den USA 85% aller Energie durch tierische oder menschliche - meist afrikanische oder chinesische - Muskelkraft erzeugt. Nur rund 100 Jahre später stammte die gesamte Energie ausschließlich von Kraftstoff betriebenen Maschinen. Das verdanken wir der Tatsache, dass eine Gallone Benzin zum Preis von 2 Dollar so viel Energie erzeugt, wie ein Schwerarbeiter in 6 Wochen. Dieses billige Benzin hat die ganze Welt verändert. Jahrtausende lang gab es höchstens ein paar hundert Millionen Menschen auf der Erde. 1820 übersprangen wir die erste Milliarde, 1930 die zweite und 1999 waren wir bereits bei sechs Milliarden angekommen. Und bis heute ist noch eine weitere halbe Milliarde, etwa so viel wie die Bevölkerung Nordamerikas, hinzugekommen. Verbesserte Transportmöglichkeiten und die Intensivierung der Agrar- und Forstwirtschaft verschafften uns einmal hervorragende Lebensbedingungen, doch inzwischen gefährdet der von ihnen ausgelöste Klimawandel unser Überleben auf diesem Planeten.
Als man Mitte des 19. Jahrhundert begann, nach Erdöl zu bohren, erkannte der junge J.D. Rockefeller ganz schnell die Chancen dieses Marktes und wurde zum reichsten Mann der Welt. Autos, Flugzeuge, die Plastik- und die chemische Industrie trieben den Ölverbrauch immer weiter in die Höhe. Aber spätestens seit den 1970er Jahren wissen wir, dass die Ölverkommen nicht unerschöpflich sind. Lange hatte man ja geglaubt, dass versiegte Ölquellen durch die Erschließung neuer Felder ersetzt werden könnten.
Anfang des 20. Jahrhunderts waren die USA noch die führende Exportnation für Öl, Industrie- und Handelsgüter. "Made in USA" galt als Gütesiegel. Die ganze Welt lieh sich bei uns Geld. Heute importieren wir soviel Öl wie China und Japan zusammen. Unsere öffentlichen und privaten Schulden sind die höchsten der Welt. Kein anderes Land importiert mehr Industriegüter. Unser Handelsdefizit beläuft sich auf täglich 2,5 Milliarden Dollar. Im Rest der Welt sieht es allerdings nicht viel besser aus. Vermutlich werden wir das Versiegen der Ölquellen erst begreifen, wenn es bereits zu spät ist.
Als das Ölembargo von 1973 und der Sturz des Schahs im Jahr 1979 die Ölpreise eskalieren ließen, schränkten wir unseren Verbrauch deutlich ein. Als die Preise fielen, gaben wir uns prompt wieder dem gewohnten Benzinrausch hin. So kommen wir dem Ende der Öl-Vorräte immer näher. 2004 wurden 7 Milliarden Barrel Öl neu entdeckt, aber gefördert und verbraucht wurden 30 Milliarden Barrel. In Europa werden die 1970 entdeckten Nordsee-Ölvorräte bald erschöpft sein. Das OPEC-Mitglied Indonesien importiert heute mehr Öl als es exportiert. Auch in Großbritannien, Argentinien, Pakistan, Kongo, Neuseeland, Jemen, Tunesien, Gabun, Norwegen, Kolumbien, Ägypten, Katar, Venezuela, Iran, Nigeria und Algerien gehen die Ölvorräte allmählich zur Neige. In Saudiarabien hüllt man sich diesbezüglich in tiefes Schweigen.

- 2- 

Wenn laut einer englischen Studie bald täglich zusätzlich 30 Millionen Barrel Öl benötigt werden, aber nur 16.5 Millionen Barrel zusätzlich gefördert werden können, dürfte die weltweite Erdölproduktion ab 2008 ihren Zenit überschritten haben. Kleine schwer und teuer zu gewinnende Ölvorkommen können versiegende reiche Quellen nicht ersetzen. Weil viele Ölländer und Ölgesellschaften ihre tatsächlichen Vorkommen aus wirtschaftlichen oder politischen Gründen falsch angegeben haben, wissen wir nicht genau, wie lange die Ölvorräte noch reichen werden. Niemand sollte jedoch darauf vertrauen, dass man ja noch immer eine Lösung gefunden habe. Wenn wir an der Tankstelle über die gierigen Ölgesellschaften schimpfen, sollten wir nicht vergessen, dass sie ständig in immer kompliziertere Förderanlagen investieren müssen und ihre Gewinne deshalb sehr viel bescheidener ausfallen als die der Pharmaindustrie. Vielleicht wird es sogar die Ölindustrie sein, die uns vom Öl weg hin zu anderen Energieformen führt.
Nur mit großer Anstrengung und viel Geld wird es gelingen, die unvorhersehbaren, wirtschaftlichen, sozialen und politischen Risiken rechtzeitig in geordnete Bahnen zu lenken. Wenn uns erst die hohen Spritpreise veranlassen, Wasserstoff-Autos zu entwickeln, dann kommt das 20 Jahre zu spät. Es gibt ja bereits Pläne für das Drei-Liter-Auto - aber weder GM, Ford und Chrysler noch die Kunden konnten sich bisher so recht dafür erwärmen. Selbst mit hohen Investitionsanreizen und großzügiger Staatshilfe würde es mindestens noch 20 Jahre dauern, bis unsere gesamte PKW- und LKW-Flotte umgestellt wäre. Auch wenn wir nicht so ganz genau wissen, wie lange die Ölvorräte noch reichen, müssen wir uns spätestens heute für die Umstellung auf erneuerbare Energien einsetzen. Niemand kann vorhersagen, wann der nächste Hurrikan in New Orleans tobt und in Kalifornien das nächste Erdbeben droht, trotzdem muss man immer darauf vorbereitet sein, genauso wie auf das in absehbarer Zeit bevorstehende Versiegen der Ölquellen.

Wie und durch was  kann man Öl ersetzen?
Energie aus Erdgas ist keine bezahlbare oder vernünftige Alternative, ebenso wenig. Kohle. Sie ist teuer, umweltschädlich und ihr Vorkommen ist begrenzt.
Atomenergie?. Mit ihr kann man Strom erzeugen, aber auf unseren Straßen fahren keine 200 Millionen Elektroautos. Wenn wir mit Atomenergie Wasserstoffautos betreiben wollten, benötigten wir Hunderte von neuen, teuren Atommeilern. Sie zu bauen, würde mindestens 10 bis 20 Jahre dauern. Das ist auch keine Lösung.
Erneuerbarer Energie? Da bin ich ganz dafür. Aber noch besteht sie hauptsächlich aus Wasserkraft und Biomasse und dem gemütlichen Holzfeuer im Kamin. Sonnen- und Windenergie decken heute erst einen kleinen Teil unseres Energiebedarfs. Und auch sie eignen sich nur zur Stromerzeugung.
Für Biokraftstoffe, wie Bio-Diesel und Ethanol würden wir so viel Ackerboden benötigen, dass wir bald vor der Frage stünden, ob wir in Zukunft Menschen oder Autos ernähren wollen. Unser gesamter Kraftstoffbedarf lässt sich einfach nicht mit Biokraftstoffen abdecken.

Das bedeutet, dass es keine einfache Patentrezeptlösung gibt und wir in die unterschiedlichsten alternativen Energien sehr viel Geld investieren werden müssen. Aber vor allem und in allererster Linie müssen wir unseren Verbrauch einschränken. Diese Lösung sagt nicht jedem zu. Ingenieure und Wirtschaftsleute sprechen lieber über alternative Energien als über Energiesparen. Dabei ist das die billigste Lösung und deshalb müssen wir uns darauf konzentrieren.

- 3 -

Die Ölquellen werden nicht plötzlich, von einem Tag auf den anderen, versiegen, In den nächsten fünf Jahren etwa werden wir ein ständiges Auf und Ab erleben. Je geringer die Fördermengen, umso höher die Preise, umso schwächer die Wirtschaft. Der Ölbedarf geht zurück. Die. Preise fallen. Wirtschaft und Nachfrage erholen sich, und alles beginnt wieder       vonvorne.AuchextremeWetterbedingungen,werdensich negativ auf die Energieversorgung auswirken. Es könnte sogar zu Krieg und Völkermord um die Kontrolle über das Öl kommen. Niemand weiß ob und wann all das passiert. Sicher ist, dass wir rückblickend feststellen werden, dass in der ersten Dekade des 21. Jahrhunderts die Ölförderung auf der ganzen Welt ihren Höhepunkt überschritten haben wird.

Ich setze meine Hoffnung auf ein Abkommen, das so genannte Öl-Förderprotokoll, wonach die Öl produzierenden Länder ihre Förderrate jährlich um 2,6 oder 2,7 % reduzieren und die Öl importierenden Länder ihre Einfuhrquoten um genau diesen Prozentsatz senken. Damit könnten wir weltweit die Fördermengen an die noch verbleibenden Restvorkommen anpassen. So blieben die Preise stabil, es gäbe keine Wirtschaftskrisen und auch ärmere Länder könnten sich die von ihnen benötigten geringen Ölmengen leisten. Kriegerische Auseinandersetzungen, vielleicht sogar ein 3. Weltkrieg um das restliche Öl würden vermieden.

Wie können wir unsere Regierungen dazu bringen, einem solchen Öl-Förderprotokoll zu- zustimmen? Es gab bereits früher Abkommen zur Öl-Marktkontrolle, wie zuletzt durch die OPEC, nur hat diese inzwischen längst ihre stabilisierende Funktion verloren.
Sogar die Ölgesellschaften wären Gewinner eines solchen Vertrages, weil extreme Preisschwankungen und ein gefährliches weltweites Wirtschaftschaos vermieden würden und sie ihre durchaus noch einträglichen Geschäfte in einem gesicherten Wirtschaftsklima abwickeln könnten.
Das Öl-Förderprotokoll würde die Gemeindeverwaltungen jedoch nicht ihrer Verantwortung für die Versorgung ihrer Bürger mit Nahrung, Wasser und Energie entheben. Denn auch bei unserer Ernährung spielt Öl eine wichtige Rolle, es wird nicht nur für den Warentransport und den Betrieb landwirtschaftlicher Maschinen benötigt, sondern auch zur Herstellung von Dünger, Herbiziden und Schädlingsbekämpfungsmitteln. Wir fordern deshalb weniger Chemie in unseren Lebensmitteln und mehr Unterstützung für lokale Bauernmärkten mit Produkten aus der Region.
Auch beim Verkehr muss sich etwas ändern. Weniger Zersiedelung und weniger Autobahnen, dafür mehr Fußgänger- und Fahrradwege. Die Waren sollen nicht mehr über lange Transportwege zu uns kommen, sondern wir kommen zu den Waren, zum Dorfschneider, zum Dorfschuster und zum Mann, der uns einen neuen Klodeckel macht. Unsere lokale Wirtschaft stirbt, wenn wir weiterhin zu Wal-Markt gehen, nur weil es dort ein paar Cents billiger ist.
Was wir dringend brauchen, ist ein langfristiger Notfallplan - ähnlich den Katastropheneinsatzplänen für Vulkanausbrüche, Erdbeben und Hochwasser. Wir müssen darauf vorbereitet sein, dass mit dem versiegenden Öl die Arbeitslosigkeit schlagartig zunehmen wird. Darum dürfen schon heute Menschen nicht mehr durch Maschinen ersetzt werden, sondern menschliche Arbeitskraft, Fantasie und Geschicklichkeit sollen die Maschinen ersetzen. Wir dürfen nicht warten, bis der Ölstandanzeiger auf Null steht!!!

Einzelpersonen und Bürgerinitiativen, die nach vernünftigen Alternativen zu Erdöl und Erdgas suchen, können sich gerne an das Post Carbon Institut wenden. EnergyBulletin.net ist eine Website, die Sie über Energiefragen auf dem Laufenden hält.
Weitere Informationen erhalten Sie auch  unter:heinberg@newsletter.com
Vielen Dank für Ihr Kommen.





RICHARD HEINBERG

Peak Oil

Eugene, OR   29 January 2006

Richard Heinberg, a leading expert on energy issues, teaches at the New College of California. He is the author of "The Party's Over: Oil, War & the Fate of Industrial Societies" and "Power Down: Options & Actions for a Post-Carbon World."

Human societies, like all organisms and ecosystems, are energy-processing Systems, and it's only the high rates of energy flow that we have experienced over the past few decades that permit increases in the scale and complexity of our societies. That's important, because we've never seen human societies of the scale and complexity that we see today. And there is a reason for that: it's because we have so much energy. The fossil fuel era began really only a couple of centuries ago. Of course, you can quibble a little bit. Britain started using coal a little earlier. But we didn't really start using oil until the middle of the last Century. All of this has sort of been like winning the energy lottery. Prior to this short interval of time, we were relying on energy harvested from the environment on an immediate, annual basis, through wood, through food, primarily. The evolution of human societies has all been a process of gradually figuring out ways to harvest just a little bit more, incremental increases in energy supply that we could use for things like transportation, sailing ships, for warming and heating ourselves, for lighting our dwellings, and so on.

Back in 1850, about 85% of the energy that was powering modern societies like the U.S. was coming from muscle power, and most of that the muscles of domesticated animals, about 65%, maybe another 15% or 18% from human muscle power. And, of course, if we're talking about the U.S., a lot of that was muscle power of kidnapped Africans and indentured Chinese. Only about 17% or 18% of all the work being done in the U.S. economy was being done by fuel-fed machinery, a very small portion. But you get to about 1960, and virtually all of the work being done is being done by fuel-fed machines.
Why this change? Because of the enormous power and cheapness of fossil fuels. A single gallon of gasoline has about the same work potential äs maybe six weeks of hard human labor. Think about that. A gallon of gasoline, for which we pay maybe $2, equivalent to the work of six weeks of hard human labor? If we were to equate the two economically, either we would be paying people a fraction of a cent per hour for their labor or we would be paying over $1,000 a gallon for gasoline. Obviously, we're not doing either one. What we're doing is we're reaping enormous economic benefits from these extraordinarily cheap, abundant fuels.

One of the ways we can gauge how this has changed us äs a species and our presence on earth is world population. For hundreds of years, thousands of years, our population was much less than l billion, just a few million up to a few hundred million. We got up to l billion about around 1820, 2 billion around 1930, 3 billion around 1960-something, 4 billion around 1970-something, 5 billion in the late 1980s, 6 billion around 1999. And we've added a half billion people just since 1999. How many people are in North America? Just a little shy of half a billion people. So we've added basically a North America's worth of population to the world just since 1999.

What has enabled us to do this? Fossil fuels have certainly played an enormous role. It's not that we are directly eating oil, but we have increased the scope and speed of our transportation, so we can take resources from where they're abundant to where they're scarce. That includes food and raw materials of all kinds, all the things that support human life. We've used fossil fuels to increase our agricultural production enormously and to clear forests so that we can increase arable land globally. So here we are at kind of the pinnacle of the human presence on earth. We're consuming this amazing resource that has enabled us to increase our population so dramatically; and then the waste product from burning fossil fuels, namely CO2, carbon dioxide, is changing the planet climate and possibly undermining the possibility for our species to continue to exist on this planet, at least in the numbers that we are familiär with.

Oil is almost without doubt the most important of the fossil fuels. We actually started using oil äs a result of the depletion of another resource, namely whale oil. We were using whale oil to illuminate our houses back in the mid-19th Century. Whale oil was starting to get awfully expensive because we were getting so skillful at killing wholesale. So somebody, a fellow by the name of Edwin Drake, had the bright idea of substituting rock oil, which is the literal translation of the word petroleum, rock oil, for whale oil. He also had the idea of drilling wells for the stuff, just äs people were already drilling wells for water. Of course, this worked. And it worked to such an extent that the problem then was an overabundance of the stuff. The market for oil äs a lubricant and äs a source of Illumination was quickly overwhelmed. And then the question was, what eise can we use this stuff for?

There was a clever young man who was early on the scene by the name of J. D. Rockefeller. Not only did he corner the market and become the world's wealthiest man and start the world's first multinational Corporation, Standard Oil, he also hired teams of scientists and inventors to figure out new uses for the stuff. Within a few decades, we had ships running on oil, we had people heating their houses with the stuff. Rockefeller wasn't responsible for the invention of the internal combustion engine, but that happened in short order, and then the automobile and the airplane and the plastics industry and the chemicals industry. Before you know it, here we are. So how things have changed in the last 150 years.

The problem, of course, is that we're talking about a depleting resource. People say, "When is the oil going to run out?" It's been running out ever since we extracted the first barrel from the ground. The question is not when is it going to run out but when is the flow going to start to diminish. We didn't know how to ask that question, really, until the last few decades. We learned to start asking that question here in the U.S. after 1970, which is when U.S. oil production peaked. The discovery of oil in the U.S. peaked right around 1930 and then started its inevitable decline. In the lower 48 U.S. there is
 virtually no new oil being discovered today. Some in the Gulf of Mexico and, of course, there is more to be had in Alaska, and maybe on the Continental shelves of California and Florida, but in the lower 48 U.S. we've just about tapped it out. We've extracted just about 90% of all the oil that's there. We've done a really good Job. So discovery peaked right around 1930, and then extraction continued to increase until right around 1970, and then the rate of extraction started to decline. That wasn't because people decided they were tired of extracting oil in the U.S. and they would go someplace eise and do it. This was for geographical reasons. It became impossible to maintain the rate of flow, the rate of extraction, in the U.S. So we experienced peak oil here in the U.S.
U.S. peak oil had some effects. Those effects were blunted by the fact that we were able to import oil from other countries. Nevertheless, this country has changed äs a result of what happened in 1970. Back when I was born in 1950, this country was the world's foremost oil-producing nation. It's sometimes a little hard to remember that. The U.S. was also the world's foremost oil exporter in the early part of the 20th Century. And we were the world's foremost exporter of manufactured goods and machine tools. In fact, 50 years ago, 60% of the world's trade goods carried a "Made in U.S.A." label, 60%! And that was a symbol of quality. We were the world's foremost creditor nation, by far. We were loaning money to the rest of the world.

So what's changed in the last 55 years? The U.S. has become by far the world's foremost oil-importing nation. The second and third countries are China and Japan. The U.S. imports twice äs much oil äs China and Japan combined, so we're way ahead of whoever is in second place. We've also become by far the world's foremost debtor nation. We are borrowing $2.5 billion per day just to finance the trade deficit, never mind consumer debt or government debt. We have also become the world's foremost importer of manufactured goods and non-petroleum resources. By the way, that trade deficit, how much of that goes to paying for oil? About 40% directly for oil. Then, of course, there are indirect costs äs well. So if this happened to the U.S., it Stands to reason it's going to happen to the world äs a whole at some time. Nobody knows for sure exactly when that will be. We will know when it is in the past, when we can look in the rear-view mirror and confirm that global oil production has been declining for several quarters in a row.

Remember in 1973, there was the Arab oil embargo that caused the price of oil to shoot up 400%. Then in 1979, with the fall of the Shah of Iran, oil prices went up another 200%. As a result of those incidents, we actually reduced our demand for oil and our use of oil for several years running, and the effect was substantial. Then, when the price of oil plummeted in the mid-1980s, we went back to using the stuff at the same rates. In fact, it took a few years for us to get back to the same rate of oil consumption globally äs we had experienced back in the late 1970s. Then starting in the 1990s, we have really gone back on a binge. Some experts are saying that we may actually have peaked already in terms of regulär, conventional oil. It may have happened in the fourth quarter of 2005. But we may still experience some growth in production from deep-water oil and the other nonconventional sources.

Some clues äs to how close we may be? One is certainly the fact that global oil discoveries have been declining for some time. ExxonMobil shows global oil discoveries peaking right around 1964. In 1999 and 2000, we had unusually good years for discovery, but since then discoveries have fallen off again. In 2004, I think we found about 7 billion barrels of oil, but we extracted and used 30 billion barrels. So the ratio is in the general region of 4 or 5 to l at this point in terms of discovery versus consumption. It used to be that we were discovering more oil every year than we used. 1980 was a year in which the amount we discovered was pretty much equal to the amount that we used. Since 1980 we have been drawing down on that bank account, if you will, of discovered oil, and ever increasingly so.

Meanwhile, individual nations in not just the U.S. but many other nations have peaked in production, and, in fact, whole regions, like the North Sea. The North Sea was an extremely important oil-producing province because most of the discoveries took place in the 1970s, when we were very concerned about global supplies. Finding lots of light sweet crude in areas under the control of non-Middle Eastern countries, like Norway and Denmark and Great Britain, was very good news for a lot of oil-importing nations. So we went about extracting that deep-water oil in the North Sea using all the latest technologies and doing it äs efficiently äs possible, with the result that peak of extraction occurred only 30 years after peak of discovery. The rate of decline is pretty substantial in the North Sea. We're not seeing 1% or 2% or 3% rates of decline in the North Sea. We're seeing 5%, 7%, and 10% rates of decline in the North Sea, really precipitous and substantial.

Indonesia has been a very important oil-producing country throughout the 20th Century. It played an extremely important role in World War II. Much of the Pacific theater of World War II revolved around the U.S. finding way s to prevent Japan from having access to oil from the Dutch East Indies. Royal Dutch Shell, the great oil Company, got its start in the Dutch East Indies, what's now called Indonesia. Indonesia is so far into depletion that even though it's still a member of OPEC, the Organization of Petroleum Exporting Countries, it is actually importing more oil than it exports today. Of course, there is some question äs to whether it can continue to be a member of OPEC, being in that Situation. U.K., Argentina, Pakistan, Congo, New Zealand, Yemen, Tunisia, Gabon, Norway, Colombia, Egypt, altogether these are OPEC countries that are in the depletion zone. Qatar, Venezuela, Iran, Nigeria, Algeria.
Saudi Arabia is a big question mark because, of course, the Saudis themselves insist that they will be able to continue increasing their rate of extraction for several decades. But Matthew Simmons, who is the founder of Simmons & Company International, the energy investment bank, recently wrote a book called Twilight in the Desert in which he analyzed about 230 technical papers by members of the Society of Petroleum Engineers who had worked in Saudi Arabia, papers about their experience in the Saudi Arabian fields. He concludes from his analysis of these technical papers that Saudi Arabia may in fact be very close to its oil production peak right now. It's a point of great controversy, but I think it's a very persuasive argument.
So altogether, non-OPEC and OPEC countries that are in decline number something like 33 out of 48 countries. This has been actually admitted by Chevron in some of its recent press releases. Another interesting press release, 6 September 2005, "CNOOC"—that's Chinese National Offshore Oil Corporation—"Chief Economist Predicts $90 Oil." What does this actually say? '"Oil will peak at $90 per barrel by March of next year,'" CNOOC chief economist Zhang Weiping said at a conference discussing China's energy needs in Beijing on Monday." Buried in the paragraph it says, "Zhang also expected global oil production to peak at 94 to 100 million barrels a day during the next five years." That's a pretty important statement, actually. And his next statement is just the icing on the cake, actually. '"High oil prices will have adverse effects on China's economy,' said Zhang." Yes, right.

The IEA, International Energy Agency, which is headquartered in Paris, was actually set up in the 1970s by the world's wealthy oil importing countries to warn of future oil shocks. While the IEA is very careful about upsetting investors or people in the industry and tends to make a pretty rosy projection of the future of oil, nevertheless, some of the chief analysts in the IEA occasionally make presentations where they say things that sort of make you wonder from about a year ago. The IEA is predicting for 2006 a little less than 2 million barrels a day of new production capacity that will be needed to meet new demand. Right now in the world we use about 84 million barrels of oil per day. That's our current production capacity, 84 million barrels a day. But that's not static. The IEA says that this year that's going to increase because of new demand, especially from places like China, India, and somewhat from the U.S. There will be increased demand, so instead of 84 million barrels a day, by the end of the year we will have to be producing almost 86 million barrels a day. Meanwhile, we'll need to develop more production capacity, about 4 million barrels a day of new production capacity, to offset the depletion.
What's that about? Remember, many individual countries are past peak. That means this year they will reliably and predictably produce less oil than they did last year. So some other countries have to produce more oil than they did last year just for us to stay even. This 4 million barrels a day, all of that is not that kind of depletion, but some of it is. Whether it's Russia or Saudi Arabia or Kuwait, some nations are going to have to produce more this year than they did last year to offset the depletion and decline rates of countries like Norway, Great Britain, the U.S., Indonesia, and so on. So altogether this adds up to 6 million barrels of production capacity per day. That's a substantial amount. That's hard work for the global oil industry. And they've got to do the same thing in 2007 and 2008 and 2009. This is accumulative. By 2010 we're talking about over 30 million barrels a day of new production capacity that has to be developed and brought on line. That's drilling out existing fields and finding new fields and bringing them on line. That's a tremendous amount of investment and hard work in marginal areas like continental shelves and deep water.

So can the industry do it? That's the question. How long can the industry continue doing it? Obviously, up to this point the industry has successfully managed to do this with every passing year. But for how long? That was the subject of a study by Chris Skrebowski, who is the editor of Petroleum Review in London. Chris has an ongoing study he calls oil field megaprojects, in which he carefully analyzes all the new production projects that are coming on line over the next few years. He's found that while we need over 30 million barrels of oil a day of new production over the decade, there is only about 16 1/2 million barrels of day of new production capacity that's actually in development over the next five years. And we're not likely to see any surprises in this regard, because new production projects take years to bring on line and they require immense investment. They're not the kinds of things you can keep secret, and not many oil companies or oil-producing countries would want to keep them secret. In fact, they tend to brag about them and overstate them, if anything. This leads Skrebowski to conclude that the all-time global oil production peak is most likely to occur in about 2008.

The IEA says, "Older fields are mature and declining." What's the problem there? The problem is that not all oil fields are created equal. There are some giant and super-giant oil fields and there are some real minnows. There are some oil fields or oil wells that produce literally a few barrels a day. The super-giant fields, the ones like Ghawar, which produce millions of barrels a day, are really rare, and they were all discovered a long time ago. Most of them were discovered in the 1940s, 1950s, and 1960s. In fact, there are only about a hundred giant oil fields that account for about a half of global oil production. The other half of global oil production comes from thousands of much smaller fields. So the problem is the older fields, the super-giants, are mature and declining, and what we're finding, the new discoveries, are the much smaller fields. That means that the industry is on a treadmill that's constantly speeding up. In order to replace those giant fields, which are in decline, they have to discover large numbers of small fields, which deplete fairly rapidly.

Here's an interesting statement. Again, this is from the International Energy Agency. "Global reserves have been overstated for political reasons." Back in the 1980s, OPEC made a rule which said that member countries could extract and export oil in proportion to their reserves. So if a country had large reserves, it could export more oil. If a country had smaller reserves, it could export less oil. This is because the whole point of OPEC was to constrain production in order to control prices. So the only way they can do that is to have their members adhere to the rules. What this did was to provide an incentive for member countries to overstate their reserves. Between 1984 and 1985, Kuwait went from 63.9 billion barrels of stated reserves to 90. Where did those 30 billion barrels of oil come from? There didn't happen to be any major discoveries in Kuwait that year. So a couple of years later, Abu Dhabi, not to be outdone, went from 31 billion barrels to 92.2, Iran went from 48.8 to 92.9, and Iraq from 47.1 to a nice round 100. Saudi Arabia, which didn't approve of this practice, by the way, waited a couple of years and finally, because Saudi Arabia was losing market share—presumably, I guess, that's the reason—decided to change its stated reserves from 170 billion barrels to 257 1/2. Is all of that oil there? Answer: Nobody knows. Why? Because Saudi Arabia's actual oil reserves are a state secret.

How much oil we actually have in the world is a matter of some interest to all of us, because we all live in this world. It's kind of like we're all on this airliner that's flying at 600 knots and the altimeter is broken and the fuel gauge is broken. When we read these figures in Time magazine or The New York Times, they're always followed by two words, "proven reserves." You would assume from those two words that somebody is out there proving the existence of those reserves or their size, that there is a global oil cop with a giant dipstick who visits Riyadh once a year to check up on things. But there is no such agency, there is no one doing that job. So we just have to take their word for it.

When I give lectures like this, there are a couple of things that always come up. So let's just get them out of the way right now. What about the history of reserve additions? The industry has always been able to keep up with demand in the past, so why assume that is going to change in the future? A lot of those reserve additions are probably of a political nature and don't really reflect physical reality. Other reserve additions were as a result of reporting rules instituted by the Securities and Exchange Commission back in the 1930s and that still apply to oil companies today. That causes them to actually have to underreport their reserves. According to SEC rules, if you find a billion barrels of oil, let's say you're ExxonMobil, and you're only producing from part of that field, you can really only report that part of the field as reserves this year.

Then, as you drill out the field, you can report reserve additions. But the field was actually all discovered when you first drilled that initial well. When that first wildcat came in successfully, that's when you discovered the field. On paper, it looks as though you're finding new oil with each passing year, when that's not actually the case. This creates a very murky situation in terms of analyzing the situation with regard to how much oil we actually have and how quickly discoveries are declining and so on.

Then there is the matter of the really nonconventional petroleum resources, like the tar sands, of which there is an immense amount in Canada, in Alberta, and there is a lot of heavy oil in Venezuela, and there is an immense amount of oil shale in Colorado and Wyoming. But this stuff is not the same as liquid oil. We can't consider it in the same category, because the rate of extraction is constrained by noneconomic factors. In other words, you can't arbitrarily increase the rate of extraction just by throwing money at it. The tar sands of Canada, for example: It requires a tremendous amount of natural gas and fresh water to produce synthetic oil from the tar sands. Right now Alberta is producing about a million barrels a day. Maybe they will be producing 2 million barrels a day by 2015; maybe, with lots of investments and technical breakthroughs, 4 million barrels by 2025. But remember, we need 6 million barrels a day of new production capacity every year. So that 4 million barrels a day by 2025 is significant for Alberta and for the Canadian economy—it means environmental hell for Alberta, but it's a significant economic boon—but in terms of what the world needs in terms of flow rates, it's not going to be enough to turn the tide.
This is the problem with many economic analyses that just look at what is cost-effective. Yes, it's cost-effective to produce synthetic oil from the tar sands. The assumption then is it can be scaled up arbitrarily. That simply isn't the case. I mentioned earlier Chevron and its declaration in Time and Newsweek and all over the place. It has taken out these ads saying that oil production is in decline in 33 of the 48 largest oil-producing countries and that we're nearing the end of cheap oil, and so on. This is really a very interesting development. Chevron has a Web site called WillYouJoinUs.com, and the idea is that we citizens should join together with Chevron to figure out an answer to this problem.

The cynical part of me looks at that and says, maybe this is all public relations, and to a large extent I think it probably is. After all, the oil companies are being demonized because as we Americans pay more at the gas pump, we have to find somebody to blame, and ExxonMobil is now the world's most profitable corporation, so they make a pretty easy target. Of course, the actual profit rates against investment for these companies are not astronomically high. They're in the range of 7% or so. Compare that to what the pharmaceutical industry is making and it's not all that spectacular. Nevertheless, I think we can expect the oil companies to take some role in finding ways to mitigate this situation that we're in as a society. They are profiting by the fact that we are becoming ever more dependent on their product. So shouldn't they take some of their profits and use them to figure out a way to decrease that dependency and find replacements for oil as we need it? So maybe Chevron is doing a good thing. I like to give them the benefit of the doubt. I think it's very helpful that in fact they are telling the American people that so many countries are in decline and that we can't rely on much more cheap oil.

A report commissioned by the U.S. Department of Energy and released in February 2005 is extraordinarily important. It was commissioned from the Science Applications International Corporation, which is an organization that regularly produces scientific reports for the Department of Defense, Department of Energy, and other government agencies. The project leader was Robert L. Hirsch, who has a long and very distinguished career in the energy industry, both in government and in private industry. The U.S. Department of Energy asked Hirsch and his colleagues two questions. They asked, "Is peak oil a real problem? And if so, what should we do about it?"

Let me just read you the executive summary of this report. "The peaking of world oil production presents the U.S. and the world with an unprecedented risk management problem. As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented." When they say unprecedented, they're looking back at occasions like the Great Depression and the world wars. "Viable mitigation options exist on both the supply and demand sides, but to have substantial impact they must be initiated more than a decade in advance of peaking." In fact, in the scenarios analyzed in the report, they conclude that something like two decades of very hard work, with investment in the range of trillions of dollars, with effort on the scale of World War II level of effort, with all of society, the citizenry, government, and industry, working together to deal with this problem, two decades of that kind of work will be required in order to prepare for peak oil.

They also analyze the scenario in which we just wait for the peak to happen before we respond. This is the argument of so many economists who say that even if peak oil is real, even if global oil production is going to peak, we shouldn't worry about it because, of course, the market will take care of it. Oil prices will rise, and as they do, that will create incentives for research into other energy technologies, that will create incentives for energy efficiency measures. The transition will occur almost automatically, and 20 or 30 years later we will all be driving hydrogen hypercars, and nobody will have even noticed a bump on the economic highway. The Hirsch report says that's just not what's going to happen, because if we wait for the price signals, they will come 20 years too late.
Consider, for example, the mitigation strategy of increasing fuel efficiency in the U.S. car and truck fleet. It certainly can be done. It doesn't even require any really major innovations. We already have technologies that would enable us all to be driving cars that get 40, 50, 60, even 100 miles per gallon right now. The technology exists. So what's the problem? Right now GM and Ford and Chrysler aren't making very many of those cars that get 100 miles per gallon, and it would take them a few years to get around to it. Even in the best-case scenario it would take them a lot of investment and it would probably take some government help. Even once they got to market, not everybody buys a new car ever year. I don't know about you, but my car is 25 years old. So how long would it take to change out the entirely of the U.S. car and truck fleet? Just to get most of those cars and trucks it's going to take 15 years, maybe even 20 years. So altogether we're looking at over 20 years to implement that very simple strategy.

Everywhere you look it's a similar situation. Developing renewable energy sources, if we want to have a hydrogen economy, fine. How long is that going to take and how much is it going to cost? If we wait for the price signal, if we wait until nature tells us unequivocally, okay, oil has peaked now, and then we start, we're at least 20 years too late. So this is a good answer for those who say, "There is so much uncertainty." We don't know. Some people are saying oil is peaking right now and some people are saying it's not going to happen for another 20 years. Why should we make hard decisions now when there is so much uncertainly? Because even in the best case, it's going to take us a while to make the adjustment. Shouldn't we as a society take the worst-case scenario into account? We do that with disaster planning all the time. Should New Orleans assume that a hurricane would never actually hit here? Theoretically it's possible, but it wouldn't really happen, now, would it? Those of us who live in California have to assume that an earthquake is going to happen. It's going to happen. It may happen literally tomorrow or it may happen 20 years from now, but it's going to happen. The same thing with peak oil, so we have to plan for it.

Assuming we do that, what are the alternatives? The alternatives for replacements of oil are not all that good, frankly. This is our major energy source in this country. The second is natural gas. Natural gas is just about as big a problem, some would say a worse problem, for us than oil. You may have noticed natural gas prices a few years ago were consistently $2 a thousand cubic feet, year in, year out. Within the past few years they've gone up to $5, $7. Just a few weeks ago, they were up around $14, $15. They've declined a little bit from there, but only because we're having a very mild winter. It's about 20% warmer than the typical winter throughout North America, and that's reducing the need for natural gas for home heating. But North American natural gas is in decline, and we don't have any good way of replacing natural gas, at least over the short term. Yes, there is liquefied natural gas (LNG) that we can bring in by tanker from other places, like Russia or Australia or who knows where, but we only have four offloading terminals right now and one of those is out of commission. Building more of them is going to take a lot of time and be very expensive. The ships themselves are very expensive. Most of that supply is already spoken for by other countries like Japan and China. So we'll be really, really lucky to maintain anything like our current natural gas supply in the future using LNG. So to think that we could replace petroleum with natural gas somehow by liquefying natural gas as a transportation fuel is really a pipe dream. Nor can we imagine using natural gas as a transition fuel to make hydrogen. The cheapest way to make hydrogen is by reforming natural gas. But if we are running out of the natural gas, that really doesn't make much sense.

Coal? Coal is good at making electricity, but we don't have 200 million electric cars in this country, we have 200 million cars that run on liquid transportation fuels. And that's not going to change anytime soon. So unless we liquefy the coal, which can technically be done, coal is not going to help us. Suppose we did that. I was in South Africa just a few months ago and speaking to the executives of Sasol Corporation, which has the world's most advanced technology for coal to liquids. I asked them, "How's it going?" They're producing about 150,000 barrels of synthetic oil from coal right now. South Africa has some of the best coal reserves in the world. Meanwhile, South Africa is importing 450,000 barrels of oil per day from Saudi Arabia and Iran. So even the country that has the most developed technology in this regard and lots of good coal isn't putting it to use very much because it's so expensive and it's hard to scale up. Those Sasol plants in South Africa, if you look at them in a satellite image from space, you can see them, because they are the single largest point source of pollution on the continent of Africa. Do we really want to go there? I don't think so.

How about nuclear electric power? Again, that's a source of electricity, and we don't have any good way of running cars on electricity. Yes, if we had tons of extra electricity, we could use it to electrolyze water and produce hydrogen, but it would take an enormous amount of extra electricity. We're talking about building hundreds of new nuclear plants, each of them costing hundreds of millions of dollars and taking 10, 20 years to construct. It's not going to happen, folks.

How about renewable energy? I'm all for that, but most of that is in the form of hydro power and biomass. A lot of that is just folks burning wood in their fireplaces. Solar and wind currently form only a tiny fraction of our current energy budget. So we have a long way to go. Again, that's producing electricity.
How about biofuels? How about biodiesel or ethanol? There we run into the problem of we'll need a heck of a lot of arable land to grow those biofuels. At some point it becomes a trade-off between food for people and food for cars. Again, do we really want to go there? I think we can use biofuels on a small scale, but we can't imagine using biofuels at the rate we're currently using oil.

So what is the upshot of all this? It's that there really is no supply side fix here. Yes, we will need to invest in alternative energy sources, we will need to diversify our energy supplies, and so on. We will have to invest tremendously in all of these new sources as we go. But the main thing we're going to have to do is reduce demand. That's number one, and all the rest are far down the list. Not everybody likes that answer. When I talk to groups of engineers and economists, they want to stay on the alternative supply side and figure out what can we do about it, how can we nudge that. They just don't want to talk about how to reduce demand. In fact, that's the cheapest way of dealing with this problem. Reducing demand is always going to be cheaper than increasing supply of alternative energy sources, so that's where we need to concentrate.

The metaphor of hurricane Katrina. We had days of warning, we could see it hundreds of miles away on the computer screen. We could see it coming. Nevertheless, when the hurricane hit, there was a shameful lack of response by federal officials, even after the fact, after the hurricane had hit. Local officials and agencies were overwhelmed by the magnitude of the disaster. In fact, the most effective response was mounted by coordinated groups of volunteer citizens. I would suggest that we're likely to see a similar situation with regard to the next big disaster, which I think is likely to be peak oil and natural gas. There is no reason not to anticipate this disaster. We can see it coming for years ahead. Nevertheless, I think there is going to be woefully inadequate preparation, especially on the part of the federal government and in most places on the part of state and local governments. As a result, I think most of the responsibility is going to have to be taken up by volunteer citizens' groups working to ensure local food security, local water security, the ability of our emergency vehicles to keep operating, and so on. That's not to say that we wouldn't be much better off if the federal government did take an active role in this. I think we would be vastly better off. And I certainly hope we can turn the tide in that regard by waking up our federal officials.

Here is a medium-term forecast for oil. I don't think that we're looking at this point at a sharp peak where we can say one month, production is going up, the next month it's going down, there it was, and that was the historic moment. I think what's much more likely is that basically from now on for the next five years or so, maybe a little less, maybe a little bit more, but let's say for the next five years, we're going to be experiencing a kind of bumpy plateau, where some months production will seem to be going up and some months it will seem to be going down. Prices will become extremely volatile, and prices will go up to a certain level where they destroy economic activity. When the economy takes a big hit, that will destroy demand for oil, and the price will come down temporarily. After the price comes down, then people will be able to afford more of it, and economic activity will pick up a bit again. We're also likely to see more extreme weather events in places like the Gulf of Mexico that will impact energy production. We're likely to see geopolitical events: more oil wars between nations and within nations, civil wars over control of oil wealth and so on. All of these things are going to impact the rate of oil trade in the world. So it will be really hard to put our finger on what really is happening. But at some point we'll be able to look back in the rear-view mirror and say, "During that period of the latter half of the first decade of the 21st century, global oil production reached its all-time peak and it's all downhill from here."

I think one thing that is desperately needed is a kind of oil depletion protocol, and I'm going to discuss that for just a moment with you. This is something that my colleagues and I are working on very hard right now. I'm working on a book on the subject of the oil depletion protocol—actually, that's going to be the title of the book, The Oil Depletion Protocol—with some colleagues helping to form a nonprofit organization to publicize this. I didn't suggest the idea of an oil depletion protocol. It's the brainchild of Colin J. Campbell, who is a retired petroleum geologist who is really one of the world's experts on oil depletion. He lives in Ballydehob, Ireland. Anyway, Colin's idea for an oil depletion protocol is pretty simple. It's just that oil-producing countries would agree to produce less oil every year and oil-importing countries would agree to import less oil every year by some nonarbitrary fraction like about 2.6 to 2.7% a year, which is the world depletion rate. That's how much we produce over how much is left to extract.

What's the advantage of that? If the nations of the world were to enact the oil depletion protocol, that would stabilize prices, so we wouldn't have to worry about extreme price swings that will bankrupt whole economies, that will make it impossible for less industrialized nations to afford to import the little bit of oil that they need in order to keep their economies running. It would also reduce competition for the remaining oil supplies, competition that is likely otherwise to devolve into conflict, possibly even on a global scale, conflict between major oil importers like the U.S. and China, conflict between and countries that have a lot of oil, like Nigeria and Middle Eastern countries, Central Asian countries, and Iran. So we could avoid potentially World War III or World War IV, depending on if you count the Cold War as World War III. I don't know if you do. The benefits from the oil depletion protocol are pretty substantial, in fact. If we don't have something like the oil depletion protocol, I think the downside is extraordinary, it's horrific.

So how can we possibly talk the nations of the world into agreeing to this? In fact, we've had ways of controlling the oil trade for most of the last 150 years. It was either Standard Oil in the latter part of the 19th century setting prices or it was the Texas Railroad Commission, from 1935 to 1970, controlling production in Texas to stabilize prices of oil in the world or it was OPEC, from 1970 to the present. So in a way this is not a new idea. It's just that OPEC is no longer in a position to stabilize global oil prices because they're pumping pretty much flat out. We need something else, and I think the oil depletion protocol is it. Even the oil companies will benefit, because if we don't have something like this, the extreme price swings will result in global economic chaos and an environment in which the oil companies will not want to operate, will not be able to operate. I'm sure they would much prefer to have relatively high but not extraordinary, not exorbitantly high, oil prices that are nevertheless stable and predictable. They would much prefer to have that kind of operating environment. So I think a pretty good argument can be made for this suggestion, and we hope to be making it to the nations of the world over the next several months.

At the same time, even as we have a global oil depletion protocol, a lot of the responsibility for dealing with this problem is going to devolve upon local communities. And here I think it's going to be up to local communities to ensure their local food, water, and energy supplies. Food, you know, is tremendously dependent on oil, not only in transportation of food long distances—the typical American food item travels 1,500 miles from farm to plate these days—but also the fossil fuels used in fertilizers and pesticides and herbicides and operating the farm machinery, the planting machines, and harvesting machines, and so on. Altogether, for every calorie of food energy, typically about 10 calories of fossil fuel energy have to be invested to bring it to us to be consumed. That's a big problem. Our food industry is going to have to be reformed, and the direction of that reform has to be in the way of reducing our chemical inputs and localizing food production. That means taking care of your local farmers and making sure that they stay in business. That means shopping at your farmers' market. That means joining a CSA, Community Supported Agriculture.

We also need to find ways to operate our communities with much less transportation. That means redesigning communities. No more sprawl. Let's stop building highways and build walkable communities. Bike lanes, yes. We need more human-powered vehicles. And by that I don't mean things that look like bicycles. Yes, we need lots more bicycles, but anything that you can get around on with human power. That means delivering things by means of human power as well. Globalization, the kick we've been on for the past 20 years, has been run on cheap transportation fuels. Take away the cheap
 transportation fuels and globalization just doesn't work very well.

So we're going to have to run that movie backwards and relocalize our economies in all kinds of ways. We just don't have people in our communities anymore who make clothes and shoes and toilet seats and all the other things that we need. We're going to have to change that, and we're going to have to support one another in the process of doing that. Because if we keep going to Wal-Mart just because it's cheaper, that means that we're going to be killing our local economic activity. We've been doing that, God knows, for decades. You go to any town in the Midwest, actually across this country, and you can tell where Wal-Mart has been because the downtown is dead and the local merchants are working for Wal-Mart now. We can't let that happen.

We have to plan for long-term emergency services. We tend to plan for things like volcano eruptions and earthquakes and floods, but peak oil is going to be, as my colleague James Howard Kunstler calls it, a long emergency. It's going to be more like the Great Depression than like an earthquake or a hurricane. So we're going to have to plan for that and we're going to think about if, for example, we have high levels of unemployment, how we can employ each other's services. What happened as we started using fossil fuels was we displaced human labor with machine power. As we run out of fossil fuels, we're going to need lots more human labor. We just have to reorganize our economy in a rational way so that we can take advantage of the skills and enthusiasms and abilities of each other in making our economies work once again.

Once you start getting into it, it's all kind of a no-brainer, and a lot of communities around the country are starting to get into it. My students at New College and I are working with the City of Sebastopol in northern California to develop an energy plan.
I think so much could happen here in Eugene in this regard. You already have a mayor who clearly takes this seriously. Take advantage of it. Take advantage of this moment in time to see that your community can address this proactively rather than simply waiting for the feces to contact the rubbery oscillator.
Finally, these are a few Web sites that I find particularly helpful. The Post Carbon Institute has Post Carbon outposts all over the country. The whole point of the Post Carbon Institute is to help local groups of people find rational responses to the problem of peak oil and gas, EnergyBulletin.net is a fabulous Web site for keeping up with energy news on a daily basis. Thank you so much for being here.

For more information - heinberg@newsletter.com.

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