From: Population Matters
Published November 18, 2012 07:18 AM

Idea that we have reached "Peak Oil" incorrect

A report by theInternational Energy Agency reminds us that the peak oil idea has gone up in flames, and that the truly global implications of the 2012 report lie in the warning that we must leave most of our fossil fuels in the ground, writes Damian Carrington writes on the Guardian's Environment Blog.

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Given the bubbling cauldron of violence that the middle East so frequently and regrettably is, the prospect of the US outstripping Saudi Arabia as the world’s biggest oil producer in the next decade is deeply striking. The redrawing of the geopolitical map may cool some tensions and perhaps spark others. But the truly global implications of the International Energy Agency's flagship report for 2012 lie elsewhere, in the quietly devastating statement that no more than one-third of already proven reserves of fossil fuels can be burned by 2050 if the world is to prevent global warming exceeding the danger point of 2C. This means nothing less than leaving most of the world’s coal, oil and gas in the ground or facing a destabilised climate, with its supercharged heatwaves, floods and storms.

What follows from this is that the idea of peak oil has gone up in flames. We do not have too little fossil fuel, we have far too much. It also follows directly that the world's stock markets are sitting on toxic levels of subprime coal and gas, a giant carbon bubble ready to explode. How has it come to this? The simple answer is because the cost of the damage caused by carbon emissions is still not paid by the polluter. But the IEA's World Energy Outlook 2012 also highlights another huge problem which is throwing fuel on the fire: titanic subsidies for fossil fuels.

Refinery photo via Shutterstock.

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