Is Peak Oil for real?

(Notes: For space reasons, I made some edits and culled those important points one reader just sent me about my column "Politics, economics and the environment")

Mr. Malazarte,

I didn't have the chance to read your column weeks ago (Politics, economics and the environment) as I just came back from overseas. My daughter found your article "intriguing" that she had to cut it for my opinion.  This is a little delayed but let me share to you anyhow the energy crisis or the misconceptions of the  Oil Peak or Peak Oil at least from a geologist point of view contrary to the information you mentioned in your column and those who think that it's already happening. A copy of my credentials is attached as proof of my profession for 14 years as a Senior Geologist for one oil conglomerate based in the Middle East. 

Gas prices are moved by market forces and Peak Oil has nothing to do with it. Many of my colleagues think it (Peak Oil) is just a work of fiction. Strong economic activities in Asia, especially China, move oil inventories worldwide quickly that prices have since increased in the last three years. All  I can say this is a matter of "supply and demand."            

Can the world run out of supply for oil? In theory, yes but based on current reserves, we have more than enough to last for the next fifty years. So are we experiencing Peak Oil? The answer is a BIG NO. Peak Oil is blown out of proportion by environmentalists to discourage the use of oil to favor more expensive alternatives. But that is another discussion. 

"I do not believe the world has to worry about 'peak oil' for a very long time." This is how Abdullah S. Jum'ah, President, Director and CEO of Aramco at least debunked this fear in his most recent interview with the Energy Tribune two months ago. Geologists, like myself, can't agree any further. Hundreds of geological surveys are available confirming only less than 5 percent of world oil reserves today have been used or slightly over 1 trillion barrels of the 16 trillion that is available.    

I will send you by post a copy of some articles to let you know that the Peak Oil is a handiwork of those who claim to be "environmentalists" with selfish agenda. 

More power to your column and best regards,

P.I.H

Dear P.I.H,

Your email shook me and had my tongue tethered below my throat. All the while I thought, or most people I guess, that the party's over because of the Peak Oil. I recall I wrote a great deal about this months ago.

And it's good to know or reassuring from an expert like you that we have so much oil to deluge the world upon for the next fifty years BUT we should not remain complacent to the fact that world population is also exponentially expanding leaving even much pressure than before to extract for more oil for food production and industry.

I find it also disturbing that despite assurances of Aramco of the vast and untapped petroleum reserves beneath the surface, former Vice President of Aramco Sadad I. Al Husseini, believes otherwise. "World reserves are confused and in fact inflated. Many of the so-called reserves are in fact resources. They're not delineated, they're not accessible, they're not available for production." (Source: David Cohen, ASPO USA, October 31, 2007)   

But be that as it may, Peak Oil must be appreciated in a different light. That all good things last; that at all times we must be prepared for it like it's the last drop left. In light also of the mounting concern over the pollutive properties of petroleum-based energy, now is also the best time to reconfigure our energy research or exploration to less invasive alternatives.

In parting, oil has been traded for blood since its commercialization. A political commodity that has brought some of the world's longest and violent wars today. And that a decisive step must be taken to limit our dependency to help in the effort of bringing lasting peace and security to many nations that are fighting over it.   

Thank you for reading TF and more power to you too!

CDM

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