I would dispute the word “learnt”, but what has been doing the rounds here is the fallout from the latest World Energy outlook from the International energy agency (IEA). The UK press has been full of America becoming a net exporter of oil and gas and and overtaking Saudi Arabia as a producer. Natural Gas is said to be too cheap to meter in the US and we should all start fracking etc. I have to say I don’t completely accept this hypothesis (as you will not be surprised). I will be reading up on the latest findings and writing a blog entry this coming week on this. I have downloaded some reports to read, but I will leave you with the following for now. First, if you drill down (pun intended) into the summary of the WEO report its not quite as optimistic as has been reported, second unconventional oil and gas is more energy intensive and therefore more expensive to extract. Peak oil is not just about running out of oil, its about running out of cheap easy to extract oil. The cheap easy oil has peaked, in previous reports even the IEA accept that. Therefore whilst I might accept we are at the top of a broader oil peak than was previously thought, I still think we are around the summit. At the moment I have not seen sufficient evidence to change my mind. Therefore “No oil in the lamp” is still very relevant and will continue to be so.
PS. I would be interested in knowing how much US readers are paying for their natural gas on the gas grid. Mine is going to go up in a few weeks and I will be paying 8 cents (including 5% sales tax) per KWh.