According to Nasdaq :
GET THE LATEST REPORT ON THE GAO’s REPORT ON PEAK OIL!!
By Ian Talley, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The U.S. Department of Energy and other federal agencies need to develop a strategy to mitigate the effects of a peak in oil production, which studies show could occur by 2040, a federal oversight body said Thursday.
While there was a great deal of uncertainty over the timing of peak oil because members of the Organization of Petroleum Exporting Countries don’t open up their crude reserves for audit, the U.S. would be one of the hardest hit by a such a peak due to the nation’s dependency on oil for transportation, according to a report issued by the Government Accountability Office.
The study was requested by members of the House Committee on Science and Technology.
The theory of peak oil, which was first put forward by American geologist M. King Hubbert, holds that oil production peaks when half of the world’s reserves are depleted. Once dismissed as a fringe theory, peak oil has gained popularity in recent years as oil prices surged.
Congress’ attention to the potential problem of peak oil illustrates how worries over energy prices have come to the forefront, especially after gasoline prices rose past $3 a gallon in many parts of the nation last year. The GAO recommendations come amid other government initiatives, such as targets for biofuel consumption, aimed at reducing U.S. dependency on crude.
In recommending that Energy Secretary Samuel Bodman take the lead in establishing a response to peak oil, the GAO said any strategy should include efforts to pinpoint with greater accuracy the timing of a peak in oil production and to provide timely advice to Congress about cost-effective measures to mitigate the economic consequences.
“The timing of the peak depends on multiple, uncertain factors that will influence how quickly the remaining oil is used, including the amount of oil still in the ground, how much of the remaining oil can be ultimately produced, and future oil demand,” the GAO report said.
It said the amount of oil remaining in the ground is highly uncertain, in part because OPEC controls most of the world’s estimated oil reserves. But those reserves largely haven’t been verified by independent auditors.
“Other important sources of uncertainty about future oil production are potentially unfavorable political and investment conditions in countries where oil is located,” particularly as more than 60% of global reserves “are in countries where relatively unstable political conditions could constrain oil exploration and production.”
Efforts to minimize the impact on the U.S., such as increasing alternative fuels such as ethanol or encouraging the use of hybrid cars, require costly investments in infrastructure and new technologies.
Based on Department of Energy estimates, “even under optimistic scenarios, by 2015 (alternative) technologies could displace only the equivalent of 4% of projected U.S. annual consumption,” the GAO noted
“Under these circumstances, an imminent peak and sharp decline in oil production could have severe consequences, including a worldwide recession,” it said.
- Another well written article! As usual, the initial part of the article stated that peak oil WILL happen by 2040. The rest of the article indicates that the writer had the intention to signal that the peak oil event might be NEARER then 2040 due to many other factors mentioned. The only feeling is he is trying to be safe by stating a longer dateline 2040 but stress the seriousness of the whole event and request immediate action to mitigate the whole issue. The last part includes a worldwide RECESSION…..points to that GAO did want to express this as a SERIOUS Matter and must be deal with swiftly.
The pure mentioned of biofuel to replace oil means he did not do his homework thoroughly as biofuel is not a economically viable solution. The net energy return is negative. The reason why every calorie we eat consume 10 calories of fossil fuel because of huge amount of OIL based pesticides are used, huge amount of Natural Gas based Fertilizers are required and plenty of LAND and water will be wasted or overtake the crops for HUMAN FOOD Consumption!
Anything that needs huge amount of OIL to produce is not a viable long term solutions! The cost will be higher then OIL alone! The most important to understand is most do not understand how much we depends on fossil fuel.
If you ask me what is the solution for long term for energy? I say SUN, WIND, WAVE, Nuclear and Gravity…and possible unknown alien technology that is still considered secret and NOT shared to the public as it might become a military strategy advantage over enemies.
There won’t be a smooth transition to alternative fuel, the only solution is to prepare NOT to use oil and sustainability communities. Everyone must do their part…no exception…money must be detached from the current financial system into another form of money, maybe back to the old times of barter trade goods or services without money.
Food, Energy, Water, Shelter must be changed together with how we trade locally…the current system is pushing our people into slavery and very sensitive to economic recession…if we do not do our own business then our future are dictated by our employers and so does our salaries. The true freedom is when we no longer fear the future and ability to sustain our life without worrying about any future economic recession.
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