Sunday, November 29, 2009

A Petrocollapse Timeline

"We simply must balance our demand for energy with our rapidly shrinking resources. By acting now, we can control our future instead of letting the future control us. "

Since the early two thousand oughts we pessimistas have been trying to discern the shape of the backside of Mr. Hubbert’s curve. John Michael Greer has made a strong case for catabolic collapse, which could be described as a stair-step down from the present peak, punctuated by precipitous drops (the 147-dollar oil spike; the Lehman default; the ARMs race) and level treads (“Green Shoots,” the “Morning in America” phase we are currently re-hallucinating).

Catabolic collapse may describe the micro-view, but in coming decades the decline curve has a number, and whether that number is 2 (the grade of the uphill climb we traversed over the past 100 years) or 7 (halving every ten years) matters.

At the Local Futures conference in Michigan on November 14, Richard Douthwaite joined others, myself included, in predicting something in the 7 to 9 range, which places him in the pessimista camp, whether he likes the association or not. A splendid analysis published November 23 at the Oil Drum by Tony “ace” Erikson follows a more benign 3 degree slope (1.6 to 2.4 mbd/a), and offers a very nifty view of the next few years. I have taken the liberty of combining ace’s charts with an overlaying fabric of possible socio-political reactions.

Here is the projected decline slope, derived by subtracting new supplies now being developed from anticipated depletion of existing supply, with an overlay of expected prices: 

Here is the projection of just the new additions, which typically take 8 to 10 years to develop after discovery, assuming the product price justifies the expense to develop (which it does in this case), together with a possible socio-political overlay for the United States. 

Going by these charts it is safe to say that the next few years should be very lively. Stick around. 

No comments:




The Great Change is published whenever the spirit moves me. Writings on this site are purely the opinion of Albert Bates and are subject to a Creative Commons Attribution Non-Commercial Share-Alike 3.0 "unported" copyright. People are free to share (i.e, to copy, distribute and transmit this work) and to build upon and adapt this work – under the following conditions of attribution, n on-commercial use, and share alike: Attribution (BY): You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). Non-Commercial (NC): You may not use this work for commercial purposes. Share Alike (SA): If you alter, transform, or build upon this work, you may distribute the resulting work only under the same or similar license to this one. Nothing in this license is intended to reduce, limit, or restrict any rights arising from fair use or other limitations on the exclusive rights of the copyright owner under copyright law or other applicable laws. Therefore, the content of
this publication may be quoted or cited as per fair use rights. Any of the conditions of this license can be waived if you get permission from the copyright holder (i.e., the Author). Where the work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license. For the complete Creative Commons legal code affecting this publication, see here. Writings on this site do not constitute legal or financial advice, and do not reflect the views of any other firm, employer, or organization. Information on this site is not classified and is not otherwise subject to confidentiality or non-disclosure.