Praise The Lord And Pass The Efficiency Ammo

From now on, we promise to smile each time a respected industry figure states publicly that oil prices are headed up, driven by the combination of rapidly escalating demand from developing nations and by peak oil. That such a statement was just made by Lord Oxburgh, former Shell Chairman (now with a biodiesel firm), can be viewed variously. He's either self serving toward his biodiesel interests and right about petro prices...or he's not.

Which politicians think they know better and want to play fuel-cost roulette? That's the very political gamble which has been made constantly by the auto industry and by the US Congress. It's a gamble that reminds this writer of a sign in the window of a Chicago instrument repair shop: "This shop is guarded by me and my shotgun two nights a week. Guess which ones."

Why would this make us smile? Because, we need serious, on-record statements like this to get politicians off the denial drugs and pushing for aggressive fuel conservation policies. And, it frames the foremost climate catastrophe solution - energy conservation - without even saying "climate." That framing disables the economic panic button already being pushed by the Think Tanks which, for decades, had spent their resources making climate science seem less certain than it was."Lord Oxburgh, the former chairman of Shell, has issued a stark warning that the price of oil could hit $150 per barrel, with oil production peaking within the next 20 years. He accused the industry of having its head "in the sand" about the depletion of supplies, and warned: "We may be sleepwalking into a problem which is actually going to be very serious and it may be too late to do anything about it by the time we are fully aware.""

"In an interview with The Independent on Sunday ahead of his address to the Association for the Study of Peak Oil in Ireland this week, Lord Oxburgh, one of the most respected names in the energy industry, said a rapid increase in the price of oil was inevitable as demand continued to outstrip supply. He said: "We can probably go on extracting oil from the ground for a very long time, but it is going to get very expensive indeed.""

"And once you see oil prices in excess of $100 or $150 a barrel, the alternatives simply become more attractive on price grounds if on no others.""

"Lord Oxburgh added that oil majors must invest more heavily in developing viable alternatives to oil and gas. "If you look at it from oil companies' point of view, effectively what they're doing at the moment is continuing business as usual, and sticking their toes in the water in a number of areas which might become important in future."

Via:: The Independent, On Sunday. Oil industry 'sleepwalking into crisis' Image credit:: Lingnan University, Lord Oxburgh