Posts Tagged ‘oil price’

More maths on oil

Wednesday, May 28th, 2008

Econbrowser publishes oil price estimates in more detail

Bottom line:  Demand is going to rise one hell of a lot.  Supply for that demand just is not there.

This paper does not review supply from coal to liquids or gas to liquids.  The only way to meet demand is to generate liquids from coal by underground gasification followed by gas to liquids conversion.  This will require many, many quite gigantic projects, but at present we have only a small number of small exploratory projects, most them scheduled to start producing around 2015 or so.  So the price of oil will have to rise to quite astonishing levels, at least for a couple of decades.   We have only seen the beginning.