Shell has been an increasingly vocal supporter of the need to plan for peak oil. Shell’s future energy scenarios paint a stark future – one where we plan for the demise of cheap oil and one where we scramble incoherently and nature decides for us. This week, in the Wall Street Journal, Shell’s CEO Peter Voser spoke more words in direct support of the peak oil camp:
When asked about the theory of “peak” oil in the world and whether that theory was now dead, Mr. Voser said “I think what is dead is cheap oil.”
You need more technology, innovation and will find oil further away from markets, Mr. Voser said. More will be spent to get oil and consumers will pay, both for oil and gas.
Mr. Voser also said oil price volatility is here to stay. More money is flowing into commodities and there are more players in the market.
This is, of course, what I think, as I have been talking about the end of cheap oil and extreme oil price volatility for years now.
The article also mentions the rise of electric cars. they are not a solution to the predicament of peak oil, which cannot be ‘solved’. (That’s the definition of a predicament.) However, cars we will always have with us, just like we still have the print media despite the rise of radio, TV and the internet. Electric cars will be a huge step in the right direction. Pity they will be predominantly the domain of the rich and of delivery businesses.