Peak oil has been the topic of discussion for a long time. We have been very hopeful about peak oil, but as always there are two sides of the story. We want you to be able to draw your own conclusions about peak oil, so here is an opposing viewpoint. Travis Hoium explains why peak oil will never happen.
The oil scare that never goes away
We’ve been hearing about peak oil for years, and even some of the brightest minds in energy think the theory has some validity. But, like any other apocalypse, it never quite seems to unfold as the predictions assert. There are just too many factors that peak oil prognosticators can’t account for in their bold predictions, so they always get them wrong.
Innovation trumps conventional wisdom
One of the problem with peak oil predictions is that they have so little imagination. They don’t consider the impact of new drilling techniques that open new oil fields to massive amounts of production. A decade ago, shale drilling wasn’t a well-known technique outside of the industry, much less a major contributor to our oil production. Today, Kodiak Oil & Gas(NYSE: KOG ) , Continental Resources, and Whiting Petroleum have turned the desolate North Dakota prairie into an energy bonanza by unlocking shale oil there.
Alternatives make a peak irrelevant
For the last century there were very few alternatives to the black gold that flowed freely from wells around the world. Today the dynamic is slowly changing, squashing the fear that peak oil once garnered. If diesel fuel gets too expensive, now truckers have an alternative in liquefied or compressed natural gas. Westport Innovations (Nasdaq: WPRT ) provides the technology to make the engines possible, and Clean Energy Fuels (Nasdaq: CLNE ) is quickly building a national natural gas highway to make fueling possible.
It is important to watch the markets closely when thinking about this topic. Keep up on you market currents and current events, these things can be telling about the future of peak oil.
Quotes taken from report by Travis Hoium, Read the entire article here.
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