Electric cars and renewable energy are upsetting old projections. Peak Oil, the idea that demand for oil would greatly exceed supply may not happen the way we expected just a few years ago. If we continued to use conventional cars and produce electricity by burning fossil fuels, the world’s economy would be hit with exorbitantly high prices, thereby crashing the economy. Oil has managed to crash its own economy through the price and production wars it launched within itself within the last two years. In the meantime, oversupply has dropped the price dramatically, helping the rest of the economy while distressing countries and corporations that rely on oil revenue. Also in the meantime, electric cars and renewable energy have further reduced the demand for oil. Even if oil demand recovers or oil supply realigns, the new cars and technologies can create a similar oil demand and supply imbalance by 2023; and will do so with trends that will accelerate. Peak oil may have already happened back at $140 a barrel, not at the expected future $1,000 a barrel. The climate and economy projections will have to be re-written, possibly quite positively.
(Click on the graph for the link and the video.)
“Another Oil Crash Is Coming” – Brookings
Pretending Not To Panic 