Environment & Energy
Related: About this forumOil Down To 33% Of Global Energy Mix From Nearly 39% Ten Years Ago
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Simply put, whereas oil used to be the key commodity on which a fast, just-in-time, high-functioning global economy depended all too much, now a combination of coal, natural gas, and other inputs to the power grid have taken nearly all of the market share over the past decade. It is axiomatic, therefore, that if the global supply of oil has only increased from 74 mbpd (million barrels per day) in 2004 to 76 mbpd here at the end of 2013, but total energy consumption globally from all sources has risen over 20% in the same period, then nearly all the growth in the global economy is being funded by other forms of energy.
So you can abandon the idea there will be a future oil crash because we already had it. The world has been busily starting to wean itself off oil for nearly ten years now. Oil use in Europe and the United States peaked in 2004-2005. The decline of oil consumption only accelerated after 2008, and in the OECD, it's still declining. Will $125 or $150 oil crash the economies of Japan, the United States, or Europe at this point? Perhaps not. There is hardly any growth to crash in the OECD. It is as if the OECD economies are effectively bunkered, with no growth in wages, jobs, or construction, and nearly all progress is confined to asset prices, mainly the stock market. Perversely, this stagnation is the new strength.
Meanwhile, in the Non-OECD, where growth is actually taking place, the big drive that has taken world energy use higher since 2008 from 11310 Mtoe in 2009 to this years projected 12726 Mtoe continues to be funded by natural gas, various inputs to the power grid, and the worlds still fastest growing energy source: coal. Yes that's right, coal, which grew 2.5% last year. Again, ecological economics informs us that there must be energy inputs to fund economic growth. Well, the world has plenty of energy inputs in the form of natural gas and coal. There is no Peak Natural Gas and there is no Peak Coal. No crash is coming in either of these resources in the foreseeable future, either.
To give a better sense of the decline of oil and the rise of other energy inputs, consider that in almost every European country now, bicycle sales now outnumber automobile sales. Life After the Oil Crash, indeed! In the United States, oil demand has fallen to levels last seen over thirty years ago. The 5 mbpd of new demand in Asia, built over the past decade, has been supplied more from demand declines in the West than new global production. The real oil crash, now, the oil crash that matters most, is the decline of oils share in the total energy mix. A decade ago, oil provided nearly 39% of total global energy supply. Oils now down to 33%, and heading to 32% either this year, 2013, or by next year:
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http://www.resilience.org/stories/2013-11-21/what-happened-to-the-future
Laelth
(32,017 posts)-Laelth
NickB79
(19,233 posts)But the demand for OTHER fossil fuels is just rising faster? Is that the jist of it?
I wouldn't say that's an indication of oil's decline, but rather how truly fucked we are with regard to other forms of fossil fuel consumption. Like the article said, coal consumption is rising 2.5% per year.
We left Peak Oil behind us in the dust, but only because we stomped down on the Global Warming accelerator
GliderGuider
(21,088 posts)Back in the Peak Oil days of 2004 to 2007 I remember saying that investment would certainly dry up in a post-peak future, as demand began to shrink. I figured it would hit renewable energy, but we'll probably have to wait a few more years for that.
Many sectors in Western economies remain in oversupply or overcapacity. There is a surplus of labor and a surplus of office and industrial real estate, as well as airports, highways, and suburbs that are succumbing to a permanent decrease in throughput and traffic. Perhaps the private sector is not so unwise. Collectively, through its failure to invest, it is making a de facto forecast: No normal recovery is coming.