What all this is about…

Posted on | September 2, 2010 | No Comments

We are facing the global peak in oil production. The majority of oil producing countries are already well past their peaks and a few large producers struggle to increase production to accomodate to global demand. Yet world political leaders have failed to grasp the importance of this fact.

We use energy to run our global economy, and we are dependent on oil to maintain and expand global transportation networks. We have no large scale alternative to oil for transportation and it will take a number of years to expand the supply of renewable fuels or electricity, and vehicles etc that can run on these, so that they can start to make a dent in the demand curve for oil.

The volume of oil that we produce and use every day is a staggering 83 million barrels. This means that only in order to increase the energy supply to allow for the annual increase in demand of 1,5 per cent, we will have to make more than one million oil barrel equivalents of renewable fuels available in global markets every day. In addition to this we need to make up for the decline in oil production that we will experience in the near future.

This is why we rapidly need national strategies for large scale energy transformation. This is also why all large companies need to assess the impact that higher oil and energy prices, and reduced supply will have on their businesses.

This is what all this is about!

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