1. Peak Oil Opportunities and Challenge at the end of Cheap Petroleum Richard Heinberg Scripps College September 18, 2006 The Challenge of Peak Oil The Challenge of Peak Oil Richard Heinberg Electric Aircraft Symposium May 23, 2007 Richard Heinberg Electric Aircraft Symposium May 23, 2007

3. Chevron: “Oil production is in decline in 33 of the 48 largest oil producing countries, yet energy demand is increasing around the globe as economies grow and nations develop.” www.willyoujoinus.com

4. Global Oil Discoveries ExxonMobil 2003

5. Post Carbon Institute

6. Global crude oil production

7. All liquid fuels

8. Saudi Arabia production

9. Mexico Production

11. Above-ground factors Remaining reserves located mostly in politically and geographically problematic areas (e.g., Nigeria, Iraq, ultra-deep water—not Texas or Pennsylvania!) Lack of equipment (shortage of drilling rigs) Lack of trained personnel The latter two factors can be fixed—but not quickly!

12. The export quandary Every year there are fewer exporters, more importers Exporters are also consumers, so the amount available for export is production minus domestic consumption With high prices, exporting countries are flush with cash, their economies are growing, domestic oil consumption is rising Result: Available exports will start to shrink before peak and shrink much more rapidly than the rate of decline in total global oil production

13. How serious a problem is this?

14. Peaking of World Oil Production: Impacts, Mitigation, & Risk Management Robert L. Hirsch, SAIC, Project Leader (commissioned by US Department of Energy, February 2005) EXECUTIVE SUMMARY The peaking of world oil production presents the U.S. and the world with an unprecedented risk management problem. As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented. Viable mitigation options exist on both the supply and demand sides, but to have substantial impact, they must be initiated more than a decade in advance of peaking.

15. GAO report on Peak Oil Released April 2007; conclusions: Did not attempt a time estimate; forecasts of peak range from 2005 to 2030 The risks are serious and growing At best, the US can replace 4% of its liquid fuels with alternatives by 2015 Secretary of Energy should establish a federal Peak Oil strategy

16. What are the alternatives? Liquids from natural gas (Fischer- Tropsch) Liquids from coal Biofuels Hydrogen Electrified transport Conservation Post Carbon Institute

19. A second coal study… From “The Future of Coal” report to the European Commission from the Institute for Energy (in draft) “[T]he world could run out of economically recoverable … reserves of coal much earlier than widely anticipated.” “The amount of actual recoverable coal is … less than the widely published estimates of reserves.” “[C]oal might not be so abundant, widely available and reliable as an energy source in the future.”

21. World Energy

22. A liquid fuels crisis? Because of impending supply constraints for natural gas and coal, “Peak Oil” is not just a liquid fuels crisis, but the beginning of an across-the-board energy crisis affecting over 90% of current sources. This must inform our strategy: fuel switching will be of limited help, and attention must be paid to electricity supply. Post Carbon Institute

23. Evaluating supply options Energy return on investment Size of resource Infrastructure requirement Convenience of use Environmental impact Renewability Scalability Location of resource

24. Conservation: efficiency and curtailment Like alternative energy sources, conservation (efficiency) requires investment. Investments yield diminishing returns. However, at least in the initial stages, efficiency is almost always cheaper than new supply options. Curtailment is the cheapest option of all, but requires changes in habits and expectations.

25. Summary Energy supply problems will arise soon We are not prepared As time goes on, the supply challenge will spread to include all fossil fuels There is no credible scenario in which new energy sources can be ramped up fast enough to make up for these accelerating supply shortfalls We must begin now to design a lower- energy societal infrastructure

26. postcarbon.org richardheinberg.com

27. Transportation: Electrify it! Rail and light rail— the best long-term options for motorized land transport of freight and people… electric air transport as well?

29. Personal land transport The Velomobile 20-50 times as efficient as a Prius Electric assist