Robert Hirsch says that gas could reach $15/gallon within a few years because it is “essentially certain” the world has reached the maximum levels of oil production.
“The problem is that there’s not that much oil left in the ground,” Hirsch says. “What we’ve done is been very fortunate to have oil production increase as our economies have developed over the past decades. And now we’re reaching a point where we’re about to get, or we may be, at the maximum world oil production. After that, oil production will then decline and prices, of course, will continue to do what they’ve been doing recently. So what we’ve got today may be the ‘good old days.’”
Hirsch addressed the timeframe in which the US could see $15/gallon gas: “It could happen within a matter of months. It could happen within a matter of a few years. But it’s essentially certain that we are at the maximum of world oil production. And after that, we’ll go into decline, and when there’s much less oil available, then, of course, the price of oil is going to increase dramatically.”
Fuels, heating oil, and consumer products that rely on petroleum will all be impacted by the decline in world oil production. Hirsch estimates the world GDP declining at the same rate as oil production.
This video is from MSNBC’s News Live, broadcast May 24, 2008.
4 comments:
Randy, I still amazes me that with all the media coverage of rising gasoline prices that people are not willing to change their driving habits. We could see $15 per gallon in the future, but not anytime soon. There could be more available resources if the sweeping anti drilling laws were not passed in 2006.
check this out - www.lifeintothewind.com
Keep up the good work.
i think comments like this are so irresponsible.
i state that because this is totally untrue. the bottom line to me is there is no Peak Oil theory that is true,...there is more than enough. oil is all over this planet. on a side note we no longer need to use this resource when technology can deliver us nuclear, hydrogen, hybrid, solar, wind , and electric. we are just being forced to use petroleum by the powers that be.
recently in the last years news it was discovered that Brazil had discovered an extremely large oil field:
Brazil's Petrobras Estimates Up to 8 Billion Barrels of Light Oil in Offshore Field
By ALAN CLENDENNING
AP Business Writer
SAO PAULO, Brazil November 8, 2007 (AP)
http://abcnews.go.com/Business/wireStory?id=3840469
it's all about control of the flow of the oil. control the flow, create a manufactured crisis and get the price you want.
on a laymans terminology,.."it makes me puke what is happening to the citizens of this planet."
Dan,
Appreciate your thoughts. Agree $15 gas is still a little ways off--unless we decide to bomb IRAN... Then all bests are off as 40% of the world's oil traverses the Strait of Hormuz.
Earl,
I think it's time you open your eyes and get a clue. World demand is increasing while supply declines.
Peak Oil Theory doesn't state the world will run out of oil. It merely states that demand will outstrip supply--which is what is happening... World can currently supply 87MBD and we are using 86MBD. Any disruptions (Nigeria, IRAQ, IRAN, Venezuela, etc) create supply problems.
Additionally, Our falling dollar is exacerbating the situation as all oil is priced in US Dollars.
Randy
randy,..maybe i should have better explained my perspective on Peak Oil more clearly. but having said that i totally disagree with your perspective.
you wrote:"Peak Oil Theory doesn't state the world will run out of oil. It merely states that demand will outstrip supply--which is what is happening."
if the planet will not run out of oil then the only thing that drives the price is supply. who or what entity creates the available supply ?...it's not the planet ,..it's delivering the resource. it's the large oil companies and the refineries. these entities can create and artificially manipulated price by not creating more supply. the supply is there ,..they just are pretending that they can't deliver it.
there have been no new refineries built for 30 years,...and in fact refineries have been closed.
it is obvious that the population has expanded immensely over these thirty years in the US. additionally the amount of drivers on our roads have increased. it is an irresponsible act by this government to not mandate to the big oil companies to build refineries to manage the needed supply. anything other than that is calculated and intentional manipulation of the resource oil.
i do believe in the Peak Oil theory in that this government in collusion with the oil companies and refineries have conspired against the people to create an artificial supply/demand scenario. so i do believe that the powers that be created a Peak Oil theory based on what oil they have and how they were going to let it flow to the consuming public.but it does not apply to this planet.
i've opened my eyes,..and i don't like what i see nor do i align with the official soundbites.
earl
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