There are some things most people today know about oil.

* Global oil output is going to plummet
* Prices are going to rise forever
* The transition to alternative energy will be long and painful
* There will be more oil wars and industrial civilization may collapse
* Oil and gas will cause catastrophic climate change

The problem is that these ideas are wrong. Oil ran out first in 1885, and perhaps another five times since then. Every time, new finds, new technologies and changes in oil use confounded the pessimists.

Oil prices above $140 per barrel seem to encourage the growing belief that we are approaching peak oil and that supply cannot increase any more. But what has changed since 1998 when oil cost $10 a barrel? Just that a long period of under-investment in new energy supplies collided with rapid growth in Asia (and, easily forgotten, the USA). It takes years to turn the energy super-tanker around, to develop new oil fields, even though there is plenty in the ground.

There is a real debate over how much oil the world holds. But ideas of a vast conspiracy involving some mix of OPEC, the US government and Big Oil to exaggerate oil reserves are fantasy. Official figures are, if anything, somewhat under-stated, and, as recent massive finds in deep water offshore Brazil show, new exploration frontiers still exist. Out-dated environmental moratoria in the USA could be lifted to yield more domestic hydrocarbons. New technologies continue to wring more out of old fields. Most importantly, unconventional oil sources hold many times the volumes of conventional oil – from the famous Albertan oil sands, to fuels from natural gas, coal and plants, to cooking oil out of shales that hold trillions of barrels in the USA alone.

So there is no need to fight resource wars to secure oil. Invading oil-rich countries is vastly expensive and makes oil supplies less, not more, secure. The Middle East is a growing part of the world economy, not a nest of terrorists, desperate to cut off oil supplies in order to bankrupt themselves and invite vengeance. Propping up dictators in return for energy favours is not a valid long-term strategy either. The West, China, India and the oil exporters will gain far more from co-operating on energy, than following the mirage of energy independence.

Should we invest massively to move to a renewable energy system? Well, we already are — $100 billion in 2006 alone, and not only in the West, but in China, India, Brazil and other rising powers. Its hard to grow renewable energy any faster. Renewables are clearly a key part of powering the future, and of fighting global warming, but oil (and gas, and coal) are going to be the main sources of energy for decades to come. Capturing the carbon dioxide from fossil fuels, and storing it underground, is entirely practical and should be a major part of climate change policy. renewable energy and hydrocarbons are not enemies — we need to use them both.

So the end of oil is not imminent — neither is the collapse of industrial civilization. Even if oil supplies started declining, we could fill the gap with improved efficiency and new energy sources. Its neither necessary nor desirable for us to go back to some Year Zero of pre-modern society. Oil will never run out; it will be replaced, probably decades hence, by something better. That is the best and most positive reply to fears about the end of oil.

2008 Robin M. Mills

Author Bio
Robin M. Mills is an oil industry professional with a background in both geology and economics. Currently, he is Senior Evaluation Manager for Dubai Energy. Previously, he worked for Shell. Mills is a member of the International Association for Energy Economics and Association of International Petroleum Negotiators. He holds a Master’s Degree in Geological Sciences from Cambridge University. His book, The Myth of the Oil Crisis: Overcoming the Challenges of Depletion, Geopolitics, and Global Warning, is available August 2008 from Praeger Publishers.

Children sometimes need a little motivation to be convinced to do what they’re supposed to do. This motivation can take many forms, but the most effective ways teach the child beneficial ways to live, demonstrating the material benefits of proper conduct. Adults can also, on occasion, require a little nudging to do the thing that is right in the long run. (This can be difficult, especially when one is asked to delay gratification!) The 2009 American Recovery and Reinvestment Act was signed into law by Congress to stimulate our economy in a number of ways. (Yes, that’s the Stimulus Bill you’ve heard a lot about.) Texas is a big state, and a significant percentage of those dollars will be used to help the state’s energy consumers save money and reduce their use of the juice.

Some of the biggest energy drains in your home are your large appliances. These include refrigerators, freezers, air conditioners, dishwashers and more. These appliances generally do their jobs very well and can last for a long time, even decades. The down side to this is that older machines are often less efficient than their newer counterparts. When a homeowner purchases a new, say, water heater, their electric bill may decrease. These savings travel further up the chain, preventing the burning of fossil fuels that would have otherwise been used to operate the water heater. Some stimulus money is being used to provide rebates to consumers when they upgrade specific household appliances. In an article written for the San Antonio Express-News, Vicki Vaughan compares this idea to 2009’s “Cash For Clunkers” program, in which the government offered rebates to owners of gas-guzzling cars as an incentive to purchase more efficient ones.

Tom Fowler, reporter for the Houston Chronicle, points out that Lone Star Staters will benefit more than most Americans as a result of the money allocated by the stimulus. The bill dedicated $300 million to encourage Americans to update their appliances. Of that, $23.3 million was awarded for use by Texans. The program was approved for an April 2010 rollout, and the State Energy Conservation Office (SECO) decided upon different rebate amounts for different appliances. Room air conditioners are eligible for a $45 rebate, for example, while water heaters are eligible for a rebate of $255 to $640, depending upon the efficiency of the specific model. Another important goal of the surplus spending was to encourage the recycling of those appliances to be replaced. The SECO, as a result, set aside $75 extra dollars as a bonus for consumers who submit their old washers, refrigerators and more to be recycled.

Individual energy consumers are not the only ones to benefit from the 2009 Stimulus Bill. The Austin Statesman reported that the Department of Energy assigned $10.4 million in these funds to benefit the capital city’s Pecan Street Project, an endeavor dedicated to developing more advanced smart electrical grids. Projects such as these will help Texas maintain their lead in clean energy development and in green jobs.

Another SECO project made possible by the stimulus is the Energy Efficiency and Conservation Block Grant (EECBG) Program. Congress made $3.2 billion available nationwide for grants to be awarded on the local level. SECO has been allocated $45.6 million to be distributed to Texas cities with populations under 35,000 or counties with populations under 200,000. These grants will help Texas communities upgrade the technology used to power municipal buildings and change traffic signals and street lights to more efficient systems, among other uses.

While it may not be the most glamorous use of stimulus funds, the bill set aside $2.4 million for state and local governments to enhance “energy assurance planning.” In other words, those in charge of maintaining and improving Texas’ energy grid were granted the money necessary to develop the systems to keep the lights on. (These same systems, of course, keep factories humming, which preserves the jobs of hardworking people.)

They say you have to spend money in order to make money, and the Stimulus Bill is a good example of that idea. It’s difficult to get anything accomplished in an industry without the proper infrastructure, and these federal dollars will increase Texas’ ability to compete in the world’s increasingly green economy. Sure, the recession that depressed business and resulted in several burst bubbles will be remembered for its lasting effects on our lives. Thanks to the fact that the stimulus funds are being used to enhance energy efficiency, the positives could endure for decades to come.

The Pew Center for Global Climate Change highlights why firms need to be proactive when it comes to finding ways to become energy efficient and should not wait for any regulation that will be compelled by the Environmental Protection Agency (EPA). In a recent report, the Center has concluded that there are a number of attitudinal and reputational advantages for such initiatives that lead to financial benefits.

Companies should start to consider some examples of energy efficiency should they wish to find ways of improving their market position. According to Pew, those companies that strive to reduce their greenhouse gas emissions as a core part of the business strategy benefited in many different ways. So long as clear goals were established and the system was set up to collect data and manage the outcome, clear results could be demonstrated.

It is emphasized by the Pew Center for Global Climate Change that companies need to be proactive in seeking energy efficient practices, and need not wait for any EPA-imposed regulation to compel such. A recent report that was issued by the body offers a clearer picture. Companies which are studied by the Center has cited some important reputational, attitudinal, and financial benefits.

As energy use can account for one of the largest costs in a business operation, cost savings on energy consumption can be a very hot topic in the board rooms. Decision makers in various organizations are finding energy efficiency examples are realizing that targets that are easy to achieve would actually result to financial savings which might be difficult to duplicate anywhere else.

Organizations are now seeking options for energy efficiency like ceiling insulation, having efficient doors and windows, installation of motion detectors, upgrading of lighting systems, among other energy efficiency examples, as a way to help generate savings through power use reduction which consequently helps curtail carbon emissions and.

Those who are taking early actions in their commitment to energy efficiency could also help in leading to maintenance cost reductions. These improvements, if communicated well to staff, lead to an uptick in morale. In short, the organization wins all the way down the line and can maneuver itself into a position to enhance its reputation.

Building stock typically lasts for an average of fifty years and many companies find themselves occupying buildings that are far from efficient. The federal government is actually supportive of retrofitting of already existing assets and appliances by providing financial grants for such initiatives.

Companies must become more aware of the growing move toward carbon regulation. Carbon, being a byproduct of fossil fuel produced energy, is a direct contributor to global warming and the majority of scientists agree is responsible for accelerating climate change. By becoming more energy efficient, an organization can help to avoid any potential direct carbon taxation in the future.

There are many examples of energy efficiency in action and plenty of reasons for the typical organization to conform. Management must make sure that they are in possession of accurate and up-to-date information, generated in real-time, so that they can ensure that all assets are operating to peak efficiency, cutting back their raw energy costs to a minimum.