11/15/2004

How much oil is left?

Many people wonder how much oil remains to keep up with our increasing demand. An article discussing this very subject indicates that no one can effectively predict this.

I propose that we will never run out of oil. Higher oil prices will eventually reduce demand as consumers choose more efficient cars and energy producers develop alternatives like wind power. When the cost of finding and extracting oil becomes higher than the consumers willingness to pay for it, the oil producers will not be able to make a profit and they will be out of business. This indicates that we will never completely deplete the oil supply.

3 comments:

Kristin and Scottie said...

Running out of oil is not something that we have to worry about in our lifetime. Our children, grandchildren and even great grandchildren may not even have to deal with it. Eventually we will run out of oil. If other ways are found that oil is not needed they of course we will not run out. But as of right now it is easier to use oil in cars and society loves taking the easy and cheaper way out.

Natalie said...

I still don't believe that we will ever run out. When the cost of finding and extracting oil becomes too high, we will move on to another source of energy. This will happen before we run out.

Dr. Tufte said...

-1 for spelling mistakes in Bruce_Banner's and Maudi's comments.

Jasmine ... you'd make a good economics major (if you aren't one already)!

One of my favorite quotes of all time is from Sheik Yamani - who was the head of OPEC at its peak of power. I'm paraphrasing: "The stone age did not end for lack of stones, and the oil age will not end for lack of oil." The upshot is that something else will come along when it becomes cost effective. Think about it: is there anything that people used to use, that they no longer use because it is all gone?