Greenpeace study finds oil companies may be doomed

http://www.guardian.co.uk/business/2009/jul/27/greenpeace-oil-companies-shell


Greenpeace study finds oil companies may be doomed
Environmental activist network argues that the oil industry might be approaching a tipping point from fall in the price, advances in technology and policies on climate change

David Teather
guardian.co.uk, Monday 27 July 2009 20.44 BST

A long-term decline in the demand for oil could undermine the huge investments in Canadian tar sands, which have been heavily opposed by environmentalists, according to a report published today.

The report, by Greenpeace, will make uncomfortable reading for the companies that are investing tens of billions of pounds to exploit the hard-to-extract oil in the belief that demand and the price would climb inexorably as countries such as China and India industrialise.

Citing projections from the oil producers' cartel Opec and the International Energy Agency, as well as various oil experts, the report casts doubt on the conventional assumption that consumption and prices will begin gathering pace once the world pulls itself out of recession.

It argues that alongside the cyclical fall in the oil price there are more fundamental structural changes taking place. These are driven by advances in energy efficiency and alternative energy, cleaner vehicles, government policies on climate change and concerns over energy security. Greenpeace has posted the report to 200 shareholders in Shell and BP, including pension funds, in an effort to put pressure on the companies to think again. BP reports quarterly results tomorrow and Shell on Thursday.

Lorne Stockman, the author of the report, said: "A peak in oil demand was barely discussed even a year ago, but now it is a viable idea. When it happens, I wouldn't want to guess, but it will happen sooner than we thought. There has been lots of talk about a supply peak, but it is good to start talking about a demand peak, and that has huge implications for these companies.

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Oil will always be needed and as long as people don't fall for the lure of SUVs and the other "compensations" for having SPS*...



* Small Penis Syndrome

China has 1.3 billion people. Roughly 200 million have a "middle class" style lifestyle (cars, electricity, running water etc).

China will be adding an entire United States to the world energy market every decade for the next 40 years.

Just think about that. Imagine another US just appearing out of nowhere every 10 years.

Peak oil demand..... lol.

Even IF oil demand does peak it will be too late and demand will fall slower than peak oil production is falling.