Nov 23, 2009

Hey, it's like Christmas for energy geeks....

The International Energy Agency (IEA) released its annual World Energy Outlook (WEO) this week — a report I always anticipate eagerly. Hey, it's like Christmas for energy geeks.
The IEA found coal in its stocking though, after a report the previous evening in the UK's Guardian newspaper cited unnamed whistleblowers alleging the agency had been distorting its true view on peak oil in order to prevent public panic. The quotes were unquestionably damning:

We have [already] entered the 'peak oil' zone. I think that the situation is really bad. . . . . . imperative not to anger the Americans. . . Peak oil analysts nodded their heads in agreement. It was hardly a revelation.

John Hemming, the MP for Britain's all-party parliamentary group on peak oil and gas (yes, they actually have one — jealous?) was gruff: "Reliance on IEA reports has been used to justify claims that oil and gas supplies will not peak before 2030. It is clear now that this will not be the case and the IEA figures cannot be relied on."

Climate change is merely a stalking horse for the IEA. Whether we focus on energy or on climate, the ends are largely the same. And the IEA has astutely recognized that there's a whole lot more public momentum and investment money to be focused on climate change than there is on dour old peak oil.
Regarding the IEA's Reference Scenario, my view remains basically unchanged from what I said this time last year: "Here's my prediction: their 2010 report will state that the new peak is only 95 mbpd, at a cost of over $30 trillion. And by 2012, they'll admit that the peak was in fact in June of this year, at 87 mbpd. By 2030, fully 20 years past the peak, world oil production will likely be under 70 mbpd."
The IEA doesn't believe either one of its scenarios any more than they believe humans roamed the earth with dinosaurs. Some stories are meant to be read as parables. The internal message of the 2009 WEO is clear: The world is facing an energy crisis of epic proportions. The path we're on is precarious and unsustainable. (The word "sustainable" occurs 18 times in the report, which I'm sure is a record, and Birol repeatedly emphasized the phrase "energy revolution" in his comments.) Read more by Chris Nelder "Is the IEA World Energy Outlook Politically Distorted?"