[Peakoil] What peak oil?

[Keith]

On 17/06/2012, at 10:58 PM, W & C Steensby wrote:

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The argument that the vast majority of counted reserves are economically inaccessible is fundamentally flawed. In the long run there is only one equation that really matters in determining whether oil is extractable, and that is whether there is a net energy gain; whether energy-in exceeds energy-out. If there’s a net energy gain, it’s feasible. Certainly, we are moving toward a higher cost of energy extraction. Shale oil (for example) has a lower net energy gain than conventional oil, but still typically produces five times as much energy as is consumed in extraction.
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A lot there that flies right in the face of the accepted wisdom of this and other discussion groups.

Regards,
Walter
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I agree, Walter. 

As I see it "Net energy gain" is not the be-all and end-all. For example, it's conceivable that in a free market it would be worthwhile consuming two tons of coal (about 60 gigajoules) to produce a ton of oil (about 42 gigajoules) because oil has advantages (transportabilty, infrastucture, easy use in personal transport, air transport, defence etc.) that would mean it would be worthwhile spending more units of coal to produce fewer units of petrol.
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Keith Thomas
myrmecia at gmail.com
074 2929 4146
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