The future of fuels – Oil

15 01 2010

Last drops of oil?

Peak Oil is The story that comes to mind when thinking about the future of oil. I have had the chance to ask a couple of current and former oil executives about it. They all agree that people mistakenly anticipate a very abrupt phenomenon. Yes, there will be a peak in production; but oil will not disappear one day, when we realize that there is not a drop left in the last barrel. On the contrary, it will slowly fade away. Price and demand will adjust to make the transition easier towards other types of hydrocarbons like gas and biofuels. This will also buy us some time to develop the necessary infrastructure for an electric-based transportation system.

In a nutshell, oil is here to stay and some oil executives like Leonardo Maugeri from ENI even predicts that oil will be around for the next 100 years. A recent article in Business Week supports this assertion with an optimistic and yet, very compelling graphic representation of oil supply (link here). Indeed, there are at least three drivers that can prolong oil’s supply behind what was expected. Read the rest of this entry »