The peak oil problem

Font Size

Print

Feedback

Email

Discuss

Related Articles

Oil hovers below $79 after 3-day slideOil spikes to USD 81.26 a barrelOil eases to USD 78.65 a barrelOil tops $80, highest since Oct 14, 2008

: Matthew Simmons, a banking and investment advisor to the oil industry for approximately 38 years, was the latest speaker in UNH’s Discovery program, Power to the People, which focuses on energy use. In the past, Simmons served on Dick Cheney’s Energy Task Force.

While the United States may not have a clear-cut “Plan B” to deal with the peak oil problem, Simmons does believe there are ways to help. He pointed to conservation as the most effective way to combat the energy crisis, but said that it needs global implementation. Also, Simmons believes that many alternative energy sources, such as algae, ocean and bio-waste energy will help the world with clean and efficient power. Simmons warned that other alternative energies may not be as they appear.

“Many alternative energy sources are energy-intensive,” he said. “Corn-based energy is a scam; it’s very energy-intensive.” Simmons also pointed out that nuclear power plants must run for 15 years before they can produce enough energy to replace the energy used to build the plant itself. “New supply sources are important, but they cannot fill the energy gap,” Simmons added.

Simmons partially blames the oil industry for the energy crisis resulting from peak oil. The oil industry, he said, was run with an attitude that the oil in the Middle East would last forever. The oil industry also believed that oil would be cheap forever. In reality, peaking was a surprise to most oil firms, as there was little to no data on the issue. “It was a religion that was faith-based, not fact based,” Simmons said. “We’re flying blind. Since we don’t have the data we stay in the dark.”

...Although Simmons sees peak oil as the most immediate issue facing the world, many audience members asked questions relating peak oil to other issues, including global warming and the current presidential election.

Simmons responded by expressing his concern that this issue was being ignored. One of the few candidates who have approached Simmons is former Massachusetts governor Mitt Romney, whom Simmons personally met with to discuss the issue. Simmons also mentioned that the former mayor of New York City, Rudolph Giuliani, and New Mexico Governor Bill Richardson have also expressed concern over the issue.

First and foremost, Simmons believes that if the peak oil issue is not addressed, the world could descend into chaos with the “bullies” hoarding resources.