I have copped a lot of flack over the years talking about peak oil and how we need to prepare our economy for big changes. The Hirsch report told us five years ago, not long after this blog started, that we need at least twenty years to prepare for the peak in global crude oil production, or face serious economic, political and security problems around the world.
That report was buried by the Bush administration but managed to leak out anyway. Did we listen? No.
Now one of the world’s biggest insurers is telling business that the two biggest risks they face are peak oil and climate change. It seems Lloyd’s has gone a bit green, or has started reading frogblog.
The White Paper, put out by Lloyd’s and Chatham House, is called Sustainable Energy Security: Strategic risks and opportunities for business.
Traditional fossil fuel resources face serious supply constraints and an oil supply crunch is likely in the short-to-medium term with profound consequences for the way in which business functions today.
I recommend that everyone reads this document.
Meanwhile, President Obama is telling America to get ready for an oil constrained future. Many are calling this his ‘war on peak oil‘ speech, but he doesn’t mention peak oil directly, and seems to hint that an awful lot more drilling and oil spills will be necessary in the future. Yuk.
When will our Government wake up to the reality? When will we stop borrowing to build new roads to nowhere, rather than maintaining the road network we already have and optimising its shared use with public transport?
Surely our Government’s public denial of the realities of peak oil suffers from a serious credibility gap?