IEA Warns: Oil 'Supply Crunch' Will Return

February 16 2009 / by Garry Golden
Category: Energy   Year: 2011   Rating: 4 Hot

Burning Man

Oil Supply Crunch ahead
The world's leading authority on oil markets is warning that these days of cheap ($40 barrel) oil are just a mirage and that the world is likely to experience 'an oil supply crunch' next year (2010) as markets begin to recover.

Reuters reports on IEA Executive Director Nobuo Tanaka describing a potential short-term reality: "Currently the demand is very low due to the very bad economic situation, but when the economy starts growing, recovery comes again in 2010 and then onward, we may have another serious supply crunch if capital investment is not coming."

The Real Problem with Oil - No Alternative
Oil's biggest problem is 'lack of substiitutability'.  There is no other 'reserve' of liquid fuel that can compare to the energy locked up inside the hydrogen-carbon bonds of oil.

If we talk about using oil as gasoline for the transportation sector there is no commercially viable alternative that offers the same volume and performance.  Even 'Next Generation' biofuels from algae and cellulose-eating bacteria cannot provide the scale to fill even a tiny gap in global oil production vs demand.

People who push 'solar', 'wind' or 'nuclear' (which produce electricity) as an 'alternative to oil' simply do not understand the combustion engine. You cannot put electricity inside your gas tank.  We must either produce massive amounts of liquid fuel substitutes, or take a bolder step to kill the combustion engine.

Is the world ready to confront the real problem? The Combustion Engine

The only feasible way to dismantle oil's monopoly on the global transportation sector is to move beyond the combustion engine and liquid fuels market.

How? Electrification of the Auto Fleet

The world would be better off if it brought the transportation sector into an age of 'energy carriers' of electricity and hydrogen so that we can avoid future challenges of supply issues as we produce transportation fuels from any major fuel source.

Moving from a fuel market to an energy carrier market in transportation might be the most important step we can take in the next few decades.

Read more via the Posts below...

 

Reuters

BBC News

 

Image Credit: Burning Man art installion Image by Skampy Flickr CC License Attribution Share Alike

 

Related Posts

10 Future-focused Ideas for Obama's 'Car Czar', Imagining Life After the Combustion Engine

Garry Golden: Interview onThe Takeaway

The Road to Electric Vehicles passes through China

Wall Street Journal confirms our Case for Electric Cars: A Lower Barrier to Manufacturing

Electric vehicle industry goes global around energy storage systems
What powers the car of tomorrow? Batteries or Hydrogen fuel cells? [Hint: Both]
Video Interview with Shai Agassi on disruptive business models for electric cars
Is Detroit asleep at the wheel?
The Good news? China is investing in electric cars, The Bad news? China is investing in electric cars
Is GM expecting China to extend its grid for electric cars?
France to spend millions on electric vehicles
Warren Buffet buys equity in China’s BYD
New hydrogen storage device lighter than lithium batteries
McKinsey believes China could lead world in electric vehicles
GM pick Korean battery maker over US startup A123 Systems
Hyundai to build fuel cell electric vehicle for 2012
US algae startups could transform China coal industry
France’s GDF invests in electric car infrastructure
Hawaii’s HEKO utility take big regulatory step for 21st Century Grid
Electric vehicle networks startup moves into Australia
Detroit to World, Nobody has killed the electric car
India’s Tata Motors will produce electric vehicle in 2009 for Europe!
A Futurist’s Guide to Cars of 2020

 

Comment Thread (1 Response)

  1. The transition to a new energy system over the next few decades will be slow and, possibly, painful, but it was inevitable and long overdue (we had the chance to make massive investments after the 1970’s oil shock, but we didn’t take it, we just looked at each other blankly, shrugged our shoulders and carried on driving).

    I’m a long term optimist. In the very long term (50 years), we won’t have any energy problems. The problem now is that we are a primitive race. The planet is two thirds water, yet we have a water crisis. We receive far more energy from the sun than we need, and yet we have an energy crisis. We drive around in our little cars which burn the dead remains of plants as their mode of operation. We’re certainly not a technologically advanced race, but we’re getting there fast. Our decendents will think it was very wasteful to burn petroleum away like we did, considering how useful the stuff is (e.g plastics, chemicals, pharmaceuticals and so on).

    You’re right on to indicate the vital difference between our overall energy needs and our transportation needs. We need new technological advances, here’s hoping that Barack Obama was serious about investing in replacements soon. There are political incentives too, so I say full steam ahead, no pun intended.

    Posted by: CptSunbeam   February 17, 2009
    Vote for this comment - Recommend