On September 17, The Wall Street Journal published a fascinating article on "peak oil," "There Will Be Oil," written by Daniel Yergin, chairman of IHS Cambridge Energy Research Associates, an energy research and consulting firm and deserved recipient of Pulitzer Prize for his 1991 book, The Prize: The Epic Quest for Oil, Money and Power.After going through the same old arguments, the author ends with:
According to The Wall Street Journal, "There Will Be Oil" "is adapted from his new book, The Quest: Energy, Security and the Remaking of the Modern World.
The essay will doubtless have widespread influence amongst prosperous The Wall Street Journal readers, but in his glib dismissal of "peak oil" theory advocates, Yergin glosses or ignores a number of issues fundamental to the larger picture, for whatever reason, and these oversights should be considered in any evaluation of the piece and the peak oil "specter."
Accordingly, it is inexpensive oil that is in terminal decline, a development viewed positively by Yergin, who writes, "Activity goes up when prices go up; activity goes down when prices go down. Higher prices stimulate innovation and encourage people to figure out ingenious new ways to increase supply."Peak oil theorists / proponents used to say we were running out of oil; now they simply say we're running out of cheap oil. Okay.
I remember a few years ago when the price of natural was spiking well over $8. Now they're finding so much, some argue, natural gas producers can't make money with natural gas under $4.00.