GLOBAL RESOURCES ANALYSIS
SHORTAGES | ENERGY
The easy to find oil and gas era is over in 2015. This is not a quote of a left wing environmentalist, but a quote of the CEO of Shell on January 22, 2008 on the Shell website. And this new barrels are more difficult to explore (to deep, to cold), and not light and sweet (but heavy in formula and sour by large quantities of sulfur in it). Cheap (easy accessible and easy quality) oil and gas is over. By these two (more difficult to explore and more difficult to refine) developments oil/gas exploration and oil/gas refining will cost increasing more and more which of course results in a severe price rise of oil/gas. But extra to these two price increasing developments there the two earlier mentioned (population growth and prosperity growth) price increasing developments. Combined they're create not double bad luck, but four times bad luck for energy prices. But the most impact facet is that there is just not enough fossil energy for the world in the years to come and that within our lifetime fossil energy resources will be worn out (as in: no longer existing). The world has reached her fossil energy limits already and the end of fossil energy is in near site. For each 9 barrels we use, we find only 1 new barrel; even a child can give you the conclusion of the balance. We must phase out fossil energy rapid or it will phase out our economies. Energy certainly will demand a much and much larger space in all governmental, corporate, family and product budgets in the years to come and therefore (by the price mechanism) will certainly lead to a less energy consuming global economy and global society. Economies will be turned around to high prosperity low energy economies.
Author: Gijs Graafland
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