Our Finite World characterizes the latest US EIA International Energy forecast as “misleadingly optimistic” and ignores that fact of higher costs for extracting fossil fuels as the century proceeds.

The EIA is placing too much emphasis on what demand would be, if the price were low enough. In fact, oil, natural gas, and coal are all getting more difficult (and expensive) to extract. Prices will need to be much higher than today to cover the cost of extraction plus taxes countries choose to levy on energy extraction. The required high energy prices are likely to lead to recessionary impacts, which in turn will cut back demand for energy products of all types.

We live in a finite world. While it is true that huge resources of oil, natural gas, and coal are still theoretically available, we are starting to reach practical limits regarding extraction at prices that do not lead to economic contraction.

You can read the article here. (A Misleadingly Optimistic Energy Forecast by the EIA)

Tags: , , , ,