What happened to peak oil?

The Green party issued a press release yesterday in which they claimed that cheap oil prices give us the opportunity to start exiting from oil exploration.

Low oil prices give the Government the perfect opportunity to begin withdrawing its support for oil exploration and risky deep sea oil drilling, the Green Party said today.

Oil prices have fallen over the past 18 months, dropping from more than $100 a barrel to just over $30. Some analysts believe prices could sink to as low as $10 this year.

?Low oil prices present the perfect opportunity for the Government to start withdrawing its support for oil exploration and risky deep sea oil drilling,? said Green Party Co-leader James Shaw.

?Oil hasn?t been this cheap since George W. Bush was President.

?We know that two-thirds of all discovered fossil fuels have to stay in the ground if we want a secure, stable climate. A good economic manager would use the low current oil price to withdraw its support for further investment in dirty energy and encourage capital to flow into the clean economy instead.

?Once oil companies sink capital into extraction, it becomes costly to abandon and that much harder to meet our Paris commitments to reduce carbon pollution. ?

?The Green Party would establish a Green Investment Bank to speed this transition of capital into the low carbon economy helping to finance renewable energy plants, solar panel installations, energy efficiency retrofits, and the development and the production of significant volumes of biofuels.

?Low oil prices also gives the National Government a chance to act on carbon pricing that is more difficult when prices are high.

?We?re not going to meet our Paris commitments to reduce our carbon pollution by sitting on our hands. It?s time for the Government to help businesses and consumers lead the economic transition to a clean, green economy,? said Mr Shaw.

But in 2008 the same Green party made this claim:

Deutsche Bank thinks that supply constraints could push the price of oil to $150 a barrel by 2010. The Reserve Bank?s latest Monetary Policy Statement thinks that oil prices are going to drop from their current $104 a barrel to $70 in two years; less than half that Deutsche Bank?s prediction. Deutsche Bank?s prediction is based on increasing demand and decreasing production. If the Reserve Bank is wrong then all its calculations for our official cash rate, inflation and monetary policy are wrong. Surely it wouldn?t have got it wrong?

And a few months later they said in their post about preparing for peak oil:

Peak oil came storming forward as an immediate problem several months ago as the price of oil, and petrol soared.? But one economic crisis later and it has receded from our consciousness again.? We do need to be aware though that peak oil theorists have stated that a sign that peak oil is upon us is that the price of oil will fluctuate dramatically up and down, whilst in the long term winding its way inexorably upwards ? and taking everything else with it.? Note for instance Jeanette?s comments this morning about the role peak oil is playing in driving up inflation ? Inflation is no longer just the result of economic boom-bust cycles but is driven by the fact that the world is reaching the limits of key natural resources.

If you look at their website it is full of peak oil alarmism, and almost none of it is true. The only claim they consistently make is that wild fluctuations of price are apparently – for some reason, they don’t know, just that someone said it – an indication that peak oil is upon us.

Bollocks…like everything the Greens have to say. They are luddites and they’d like nothing better than to force us all to stop using petroleum products. Quite how they are going to continue to fly, get about kayaking and do almost everything else in life that uses petroleum products is beyond me. Perhaps they really do want us to live in caves.


– Green Party