Forget ‘peak oil’. Nafeez Ahmed reveals how the oil and gas industries are cannibalising themselves as the costs of fossil fuel extraction mount
A team of French government energy scientists are warning that the collapse of the global oil system is coming so rapidly it could derail the transition to a renewable energy system if it doesn’t happen fast enough. In just 13 years, global oil production could enter into a terminal and exponential decline, accompanied by the overall collapse of the global oil and gas industries over the next three decades.
But this is not because the earth is running out of oil and gas. Rather, it’s because they are increasingly eating themselves to stay alive. The oil and gas industries are consuming exponentially more and more energy just to keep extracting oil and gas. That’s why they’ve entered a downwards spiral of increasing costs of production, diminishing profits, rising debt and irreversible economic decline.
Hanging on for dear life to the old, dying fossil fuel paradigm is a recipe for civilisational suicide.
The implication is that global energy shortages and price spikes will be a taste of things to come if we stay dependent on fossil fuels. Yet a growing narrative has instead wrongly pinpointed the ‘clean energy transition’ as the culprit.
The Economist, for instance, describes the global gas price spikes as “the first big energy shock of the green era”, blaming inadequate investment in renewables and “some transition fossil fuels” (like gas). This could lead to “a popular revolt against climate policies.”
This implies that the fundamental driver of global energy volatility is the transition away from fossil fuels: but this flawed narrative has it exactly backwards.
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