The Oil Drum

“Alright!” says the Actress, “You’ve convinced me we have a problem with oil. So what’s the answer?” Well, actually I didn’t. Eloquent and persuasive though I might like to think that I am, what really convinced her was the price she had to pay to fill the gas tank in her car. And it is that way with most of the world. We can talk about the causes, and explain why the situation won’t get better, with graphs and projections and calculations, and most folk will, under the cynical guidance of most of the press, merely look for someone to blame. Oh, and there had better be an answer, pretty quick.

In my last post I tried to show that new solutions take time, more time than I believe that we have available. And because of this, if we are going to get through this evolving period we are largely going to be stuck with the solutions that are already either being introduced or are close to large-scale implementation. Though that is one of the things I tried to allude to in the earlier post about Camry mileage. The scale of the difference between likely supply and demand at a decent price is going to get quite large. If a solution does not provide supply levels that measure in millions of barrels a day (or significant fractions thereof) then it is not going to have enough impact to make much difference in the medium term.