What "Peak Demand"​ really looks like

[Tom Kirkman + 8,860]

The author does a remarkable job in decontructing some of the erroneous and fanciful assertions of the oil & gas hater crowd.

From LinkedIn:

What "Peak Demand" really looks like

Summary:

Even in a "rapid transition" scenario the world will use over seven hundred billion barrels of oil in the next twenty years. 

This is more than 50% of the total oil produced since the inception of the industry in 1870. 

Since we have found and used most/all the cheap oil, inevitably the next 700 billion barrels will be more expensive. 

Peak Demand may be ahead, but "Peak Cheap Oil" is certainly behind us.  ...

 

[BenFranklin'sSpectacles + 762]

On 12/5/2019 at 7:17 AM, Tom Kirkman said:

Peak Demand may be ahead, but "Peak Cheap Oil" is certainly behind us.  ...

Perhaps.  Then again, we're getting awfully good at extracting oil.  10 years ago, shale cost >$100/bbl to extract. Today, it costs <$50/bbl.  Likewise, we've lowered the cost of offshore oil and conventional onshore.  Cost reductions haven't ended either.  There's a round of automation still in progress, and hundreds of little improvements continue to add up. 

I wouldn't expect oil to be terribly expensive in the future - not that it matters much.  Oil demand destruction is coming whether oil is $50/bbl or $100/bbl.