Rising Oil Demand, Declining Production Focus of Texas Conference

Even as oil companies rake in record profits, the energy industry is bracing for a future of uncertainty and increasing difficulty in securing new prospects for expansion.

Crude oil near $50 a barrel for much of the last year has exposed a new reality emerging for both buyers and suppliers of energy: The world's struggle to meet growing demand will strain producers while creating new geopolitical
alliances, executives and analysts said Tuesday at the Cambridge Energy Research Associates conference here.

Global economic growth and declining oil production in industrialized nations have created "a new energy equation," said David O'Reilly, chairman and CEO of ChevronTexaco Corp.

"Relative to demand, oil is no longer in plentiful supply," Mr. O'Reilly said. "The time when we could count on cheap oil and even cheaper natural gas is clearly ending."

Rig Zone

whether you give it the catchy two descriptor "Peak Oil" (see, e.g., http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=266) or the old fashion "conservation" or President Carters cardigan sweater and "Energy Star Compliant."

And,

-notwithstanding the calls of Cheney and the GOP Energy Company CEO's - drilling in ANWR won't bail us out, and

-notwithstanding the NeoCons and PNAC, more elective wars of neo-imperialism and neo-colonialism won't bail us out,

-notwithstanding the political views of the technologically challenged, ignoring Kyoto won't make the problem go away

-in fact, in my not so humble, arrogant technoid geek opinion, our compliance with Kyoto would be a significant step on the path to deal with the new reality of less supply of petroleum and more demand for energy.

By burying our collective American energy hog and gas guzzler heads in the sand, we may even be past the point where hybrid cars and better home insulation and LCD computer terminals (instead of energy hog CRT terminals) will be enough.

We need a new way of thinking about where and how we live.

-Stu Cohen's Berkeley California based Land Use Coalition calls for transit villages, and communities where residences, schools, commerce, and industry are all within walking distance.

-We have to switch from a personal passenger car paradigm to a pedestrian paradigm and a mass transit paradigm.

-To do so, we have to switch from a detached house on a quarter acre to town houses, row houses, garden apartments, and high rises.

-Energy efficient engineering of our homes, offices, stores, factories, and transportation.

-Sport Utility Vehicles - If there is no proven business need, ownership should be subject to a confiscatory tax.

It is never too late to change our ways -- but it may be too late to change our ways with out economic dislocations within society. And the longer we wait -- the worse those economic dislocations will be.

And, notwithstanding Vice President Cheney's campaign speeches in the auto belt - the is not a political, Republican versus Democrat issue. Raising CAFE and switching from CRT displays to LCD displays will save American jobs!

Well goh------lee! Even Big Oil now admits that we can't go on driving Suburbans and Hummers forever and ever and ever and expect to pay $1.29 a gallon.

Shocking, I tell you! Shocking!

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